January 9, 2023 10:49 pm

IRS Interest Rates Increased for Q1 of 2023

The IRS interest rates on overpayments and underpayments for the first quarter of 2023 are one percentage point higher than in the fourth quarter of 2022 (Rev. Rul. 2022-23). The interest rates have increased by one percentage point each quarter since the end of 2021. The rates beginning January 1, 2023, are:

  • 7% for overpayments (6% in the case of a corporation);
  • 4.5% for the portion of a corporate overpayment exceeding $10,000;
  • 7% for underpayments; and
  • 9% for large corporate underpayments. 
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Tax Glossary

Health reimbursement arrangement (HRA)

Employer established account that provides tax-free reimbursements to employees for deductibles and other expenses that could be taken as itemized deductions.

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