September 1, 2022 3:47 am

IRS Interest Rates Increased for Q4

The IRS interest rates on overpayments and underpayments for the fourth quarter of 2022 are one percentage point higher than in the third quarter (Rev. Rul. 2022-15). This is the third interest rate increase this year. The rates beginning October 1, 2022, are:

  • 6% for overpayments (5% in the case of a corporation);
  • 3.5% for the portion of a corporate overpayment exceeding $10,000;
  • 6% for underpayments; and
  • 8% for large corporate underpayments.
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Tax Glossary

Deferred compensation

A portion of earnings withheld by an employer or put into a retirement plan for distribution to the employee at a later date. If certain legal requirements are met, the deferred amount is not taxable until actually paid, for example, after retirement.

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