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IRS announces underpayment, overpayment rates for 2023 First Quarter

November 30, 2022

The IRS has announced (Rev. Rul. 2022-23) the interest rates for taxpayer underpayments and overpayments for the first quarter of 2023:

 7% for overpayments [6% in the case of a corporation];
 an additional 4.5% for the portion of a corporate overpayment exceeding $10,000;
 7% for underpayments; and
 9% for large corporate underpayments. 

These rates apply quarter by quarter. If you have a tax debt that accrues interest over multiple quarters, the rate used to accrue the interest may be different for each quarter. Likewise, the rate for refunds is redetermined quarterly.

The 7% underpayment rate also applies for computing penalties for underpayment of estimated tax.

A "large corporate underpayment" is one that exceeds $100,000.

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