WASHINGTON — To boost its workforce and better help taxpayers and businesses, the Internal Revenue Service announced today that it’s looking to hire over 4,000 contact representative positions at several IRS offices nationwide this summer.

A contact representative provides administrative and technical assistance to individuals and businesses primarily over the phone, through written correspondence or in person. These full-time positions fall under a special hiring condition called direct-hire authority. Full-time, bilingual (Spanish) positions are also available. No prior tax experience is required.

"The IRS continues to increase its workforce in 2022 to improve the taxpayer experience,” said IRS Taxpayer Experience Officer and Wage and Investment Commissioner Ken Corbin. “We have a variety of jobs available all over the country. Contact representatives, among other things, deal directly with taxpayers by helping them with their tax obligations.”

The IRS offers competitive pay and benefits, on-the-job training, and opportunities for advancement. The pay range for these positions begin at a GS-05 level. Shift availabilities vary by location but there are openings for day shift, (hours between 6 a.m. – 6 p.m.) mid shift (10 a.m. – 10 p.m.) and swing shift (2 p.m. – 1:30 a.m.) in 22 cities nationwide, including Puerto Rico.

Virtual information-sharing events

The agency is hosting virtual information sharing events in June where the IRS will explain the required qualifications and job duties for the contact representative position and provide tips for navigating the application process. Participants will also hear from employees who will provide insights about the work they do day-to-day.

In-person events

In-person events will be held mostly in June, are open to the public and will be held in the following cities: Andover, Mass.; Atlanta, Ga.; Philadelphia, Pa.; Fresno and Oakland, Calif.; Brookhaven, N.Y.; Cincinnati, Ohio; Memphis, Tenn.; and Caguas, Puerto Rico. Registration for these and more can be found on the IRS careers page.

Interested job seekers are encouraged to bring their resumé and two forms of identification (i.e., state driver’s license and/or state identification card, birth certificate, U.S. passport, military ID or Social Security card). Qualified applicants will receive tentative job offers at the in-person events.

Preregistration is recommended and social-distancing is required to attend the in-person job fairs. Per Centers for Disease Control and Prevention (CDC) guidelines, mask wear is optional for these job fair sites. For complete details on the virtual events and to register to attend one of the in-person events, visit: jobs.irs.gov/events. 

The IRS is an equal opportunity employer. All employees must be U.S. citizens, pass an FBI fingerprint check and tax compliance verification, and meet the mandatory education, training, and experience qualification requirements.

WASHINGTON – The Internal Revenue Service today began its "Dirty Dozen" list for 2022, which includes potentially abusive arrangements that taxpayers should avoid. 

The potentially abusive arrangements in this series focus on four transactions that are wrongfully promoted and will likely attract additional agency compliance efforts in the future. Those four abusive transactions involve charitable remainder annuity trusts, Maltese individual retirement arrangements, foreign captive insurance, and monetized installment sales.

"Taxpayers should stop and think twice before including these questionable arrangements on their tax returns," said IRS Commissioner Chuck Rettig. "Taxpayers are legally responsible for what's on their return, not a promoter making promises and charging high fees. Taxpayers can help stop these arrangements by relying on reputable tax professionals they know they can trust." 

The four potentially abusive transactions on the list are the first four entries in this year’s Dirty Dozen series. In coming days, the IRS will focus on eight additional scams, with some focused on the average taxpayer and others focused on more complex arrangements that promoters market to higher-income individuals. 

"A key job of the IRS is to identify emerging threats to compliance and inform the public so taxpayers are not victimized, and tax practitioners can provide their clients the best advice possible," Rettig said. 

"The IRS views the four transactions listed here as potentially abusive, and they are very much on our enforcement radar screen.”

The IRS reminds taxpayers to watch out for and avoid advertised schemes, many of which are now promoted online, that promise tax savings that are too good to be true and will likely cause taxpayers to legally compromise themselves.

Taxpayers, tax professionals and financial institutions must be especially vigilant and watch out for all sorts of scams from simple emails and calls to highly questionable but enticing online advertisements. 

The first four on the “Dirty Dozen” list are described in more details as follows: 

Use of Charitable Remainder Annuity Trust (CRAT) to Eliminate Taxable Gain. In this transaction, appreciated property is transferred to a CRAT. Taxpayers improperly claim the transfer of the appreciated assets to the CRAT in and of itself gives those assets a step-up in basis to fair market value as if they had been sold to the trust. The CRAT then sells the property but does not recognize gain due to the claimed step-up in basis. The CRAT then uses the proceeds to purchase a single premium immediate annuity (SPIA). The beneficiary reports, as income, only a small portion of the annuity received from the SPIA. Through a misapplication of the law relating to CRATs, the beneficiary treats the remaining payment as an excluded portion representing a return of investment for which no tax is due. Taxpayers seek to achieve this inaccurate result by misapplying the rules under sections 72 and 664. 

Maltese (or Other Foreign) Pension Arrangements Misusing Treaty. In these transactions, U.S. citizens or U.S. residents attempt to avoid U.S. tax by making contributions to certain foreign individual retirement arrangements in Malta (or possibly other foreign countries). In these transactions, the individual typically lacks a local connection, and local law allows contributions in a form other than cash or does not limit the amount of contributions by reference to income earned from employment or self-employment activities. By improperly asserting the foreign arrangement is a “pension fund” for U.S. tax treaty purposes, the U.S. taxpayer misconstrues the relevant treaty to improperly claim an exemption from U.S. income tax on earnings in, and distributions from, the foreign arrangement.

Puerto Rican and Other Foreign Captive Insurance. In these transactions, U.S owners of closely held entities participate in a purported insurance arrangement with a Puerto Rican or other foreign corporation with cell arrangements or segregated asset plans in which the U.S. owner has a financial interest. The U.S. based individual or entity claims deductions for the cost of “insurance coverage” provided by a fronting carrier, which reinsures the “coverage” with the foreign corporation. The characteristics of the purported insurance arrangements typically will include one or more of the following: implausible risks covered, non-arm’s-length pricing, and lack of business purpose for entering into the arrangement.

Monetized Installment Sales. These transactions involve the inappropriate use of the installment sale rules under section 453 by a seller who, in the year of a sale of property, effectively receives the sales proceeds through purported loans. In a typical transaction, the seller enters into a contract to sell appreciated property to a buyer for cash and then purports to sell the same property to an intermediary in return for an installment note. The intermediary then purports to sell the property to the buyer and receives the cash purchase price. Through a series of related steps, the seller receives an amount equivalent to the sales price, less various transactional fees, in the form of a purported loan that is nonrecourse and unsecured.

Taxpayers who have engaged in any of these transactions or who are contemplating engaging in them should carefully review the underlying legal requirements and consult independent, competent advisors before claiming any purported tax benefits. Taxpayers who have already claimed the purported tax benefits of one of these four transactions on a tax return should consider taking corrective steps, such as filing an amended return and seeking independent advice. Where appropriate, the IRS will challenge the purported tax benefits from the transactions on this list, and the IRS may assert accuracy-related penalties ranging from 20% to 40%, or a civil fraud penalty of 75% of any underpayment of tax. 

While this list is not an exclusive list of transactions the IRS is scrutinizing, it represents some of the more common trends and transactions that may peak during filing season as returns are prepared and filed. Taxpayers and practitioners should always be wary of participating in transactions that seem “too good to be true.” 

The IRS remains committed to having a strong, visible, robust tax enforcement presence to support voluntary compliance. To combat the evolving variety of these potentially abusive transactions, the IRS created the Office of Promoter Investigations (OPI) to coordinate service-wide enforcement activities and focus on participants and the promoters of abusive tax avoidance transactions. The IRS has a variety of means to find potentially abusive transactions, including examinations, promoter investigations, whistleblower claims, data analytics and reviewing marketing materials.

WASHINGTON – The Internal Revenue Service today reminded taxpayers living and working outside the United States that they must file their 2021 federal income tax return by Wednesday, June 15. This deadline applies to both U.S. citizens and resident aliens abroad, including those with dual citizenship. 

Just as most taxpayers in the U.S. must timely file their returns with the IRS, those living and working in another country are also required to file. An automatic two-month deadline extension—until June 15—is normally granted for those overseas. Anyone who qualifies gets the extra time—they don’t need to ask for it. 

File to claim benefits

A taxpayer must file, even if they qualify for tax benefits, such as the Foreign Earned Income Exclusion or the Foreign Tax Credit. These benefits are not automatic and are only available if a U.S. return is filed. This is true, even if these or other tax benefits substantially reduce or eliminate U.S. tax liability.

In addition, the IRS urges families to check out expanded tax benefits, such as the Child Tax Credit, Credit for Other Dependents, and Child and Dependent Care Expenses and claim them if they qualify. Though taxpayers abroad often qualify, the calculation of these credits differs, depending upon whether they lived in the U.S. for more than half of 2021. For more information, see the instructions to Schedule 8812 and the instructions to Form 2441. 

Qualifying for the June 15 extension

A taxpayer qualifies for the special June 15 filing deadline if:

Reporting required for foreign accounts and assets  A special reporting requirement applies to most people who have foreign bank or financial accounts. Often referred to as the FBAR requirement, it is separate from and in addition to any reporting required on either Schedule B or Form 8938.The FBAR requirement applies to anyone with an interest in, or signature or other authority over foreign financial accounts whose aggregate value exceeded $10,000 at any time during 2021. They must file electronically with the Treasury Department a Financial Crimes Enforcement Network (FinCEN) Form 114, Report of Foreign Bank and Financial Accounts (FBAR). Because of this threshold, the IRS encourages taxpayers with foreign assets, even relatively small ones, to check if this filing requirement applies to them. The form is only available through the BSA E-filing System website. Tied to the regular tax-filing due date, the deadline for filing the annual FBAR was generally April 18, 2022. But FinCEN is granting filers who missed the original deadline an automatic extension until Oct. 17, 2022. There is no need to request this extension.

Report in U.S. dollars  To ensure tax payments are credited promptly, the IRS urges taxpayers to consider the speed and convenience of paying their U.S. tax obligation electronically. The fastest and easiest way to do that is via Online Account and IRS Direct Pay. These and other electronic payment options are available at IRS.gov/Payments.

Expatriate reporting Extra time is available for those who cannot meet the June 15 date. The IRS urges anyone needing the additional time to make their request electronically. Several electronic options are available. Visit IRS.gov/Extensions for details.Otherwise, individual taxpayers can request a filing extension to Oct. 17, by filing Form 4868, Application for Automatic Extension of Time To File U.S. Individual Income Tax Return. Businesses that need more time must file Form 7004, Application for Automatic Extension of Time To File Certain Business Income Tax, Information, and Other Returns.

Combat zone extension

Extensions beyond June 15

Taxpayers who relinquished their U.S. citizenship or ceased to be lawful permanent residents of the United States during 2021 must file a dual-status alien tax return, and attach Form 8854, Initial and Annual Expatriation Statement. A copy of Form 8854 must also be filed with Internal Revenue Service, 3651 S IH35 MS 4301AUSC, Austin, TX 78741, by the due date of the tax return (including extensions). See the instructions for this form and Notice 2009-85, Guidance for Expatriates Under Section 877A, for further details.

Tax payments

Treasury reporting requirement also applies to foreign accounts

In addition, certain taxpayers may also have to complete and attach to their return Form 8938, Statement of Foreign Financial Assets. Generally, U.S. citizens, resident aliens and certain nonresident aliens must report specified foreign financial assets on this form if the aggregate value of those assets exceeds certain thresholds. See the instructions for this form for details.

Federal law requires U.S. citizens and resident aliens to report any worldwide income, including income from foreign trusts and foreign bank and securities accounts. In most cases, affected taxpayers need to complete and attach Schedule B to their tax return. Part III of Schedule B asks about the existence of foreign accounts, such as bank and securities accounts, and usually requires U.S. citizens to report the country in which each account is located.

 
Visit IRS.gov for tax information

Tax help and filing information is available anytime on IRS.gov. The IRS website offers a variety of online tools to help taxpayers answer common tax questions. For example, taxpayers can search the Interactive Tax Assistant, Tax Topics and Frequently Asked Questions to get answers to common questions. IRS.gov/payments provides information on electronic payment options. 

Other resources:

• About Publication 54, Tax Guide for U.S. Citizens and Resident Aliens Abroad
• About Publication 519, U.S. Tax Guide for Aliens

WASHINGTON —The Internal Revenue Service today issued the Data Book detailing the agency’s activities during fiscal year 2021 (Oct. 1, 2020 – Sept. 30, 2021).  

“During Fiscal Year 2021, the COVID-19 pandemic continued to present the IRS with some of the greatest challenges in our agency’s history, and the way our employees responded illustrates the significant role that the IRS plays in the overall health of our country,” said IRS Commissioner Chuck Rettig.  

“The IRS was called on to provide economic relief during this national crisis while also fulfilling our agency’s core responsibilities of tax administration; IRS employees answered Congress’ call to deliver two more rounds of Economic Impact Payments and also implemented changes to the Earned Income Tax Credit, the Child Tax Credit and other refundable credits as part of the American Rescue Plan. The breadth of these missions has strengthened my belief that a fully functioning IRS is critical to the success of our nation.”

In addition to describing work performed during the pandemic, the IRS Data Book for fiscal year 2021 comprises 33 tables describing a wide variety of IRS activities from returns processed, revenue collected, and refunds issued to the number of examinations conducted and the amount of additional tax recommended, as well as budget and personnel information. The Data Book provides point-in-time estimates of IRS activities as of September 2021. A lengthier discussion of recent data was also released today.

As the pandemic continued into 2021, the IRS delivered tax administration relief to millions of taxpayers, providing financial assistance for Americans. The American Rescue Plan Act of 2021 authorized additional rounds of stimulus payments (EIP 3), which was signed into law on March 11, 2021. The IRS started issuing checks the very next day— March 12, 2021—providing immediate help to people across the country. The 2020 Recovery Rebate Credits allowed individuals who did not receive their first- or second-round EIPs, or who received less than the amounts they were eligible for, to claim the credits when they filed their 2020 tax return.

Advance Child Tax Credit and online support

The American Rescue Plan contained the important change allowing up to half of the tax year 2021 Child Tax Credits to be disbursed as advance payments to eligible families from July through

December. As a result, during the second half of 2021, more than 37 million families—covering more than 61 million qualifying children—received more than $93 billion in advance CTC payments. 

In addition to COVID-19-related tax relief, the IRS implemented vital online tools to support the 2021 advance CTC payments and reduce child poverty. These online tools included: 

Tax administration during COVID-19

At the same time as providing various pandemic-related tax relief measures to Americans, the agency continued its everyday operations, processing more than 261 million tax returns, and collecting more than $4.1 trillion in federal taxes during the fiscal year – about 96% of federal revenue from all sources. 

Collection revenue Overall, net revenue through enforcement by the collection function equaled almost $60 billion, an increase of 54% over the prior year. As part of its collection activities, the IRS saw an increase in the use of Payment Plans. Almost 2.4 million taxpayers established new payment plans (Installment Agreements) with the IRS during FY 2021, an increase of 29% compared to FY 2020. Furthermore, IRS collected nearly $13.7 billion through installment agreements in 2021, up 9% from the prior fiscal year.

Other IRS activities

Under the IRS’s Comprehensive Taxpayer Attitude Survey, the most recent findings were that most taxpayers still agree that cheating on their income taxes is not at all acceptable.

You’ll find many fascinating statistics within the Data Book," said Rettig. "But there’s more to the IRS than numbers and graphs. IRS employees are dedicated to the mission, and our agency is made up of people who give back to their communities and help one another. Our employees provide significant support for those devastated by hurricanes, wildfires and other natural disasters. Across the nation, they did amazing work in their communities to help those impacted by COVID-19."

Issues that TAS will not Accept

IRM 13.1.7.4, Exceptions to Taxpayer Advocate Service Criteria, includes information about cases TAS will no longer accept. On May 13, 2022, TAS changed its case acceptance criteria and will no longer accept referrals for assistance regarding the following:

Issue	Exclusion Period
Processing of Mailed Paper Original Returns TAS will not accept any cases where the primary issue is processing a 2021 original return. TAS will still accept economic burden cases (Criteria 1 - 4) and Best Interest of the Taxpayer (Criteria 8) for tax year 2020 and prior year original returns filed before 6/1/2021 based on either the IRS received date on IDRS or the date the taxpayer claims to have filed for returns not yet showing as received on IDRS. Employees can use IDRS Command Code TRDBV, Element/Data Lines 15 and 16 to determine if a return was filed on Paper. See Exhibit 2.3.73-3, COMMAND CODE TRDBV.	1/1/2022 to 10/15/2022
Processing of Mailed Paper Amended Returns TAS will not accept any cases where the primary issue is processing an amended tax year 2021 return. TAS will still accept economic burden cases (Criteria 1 - 4) and Best Interest of the Taxpayer (Criteria 8) for tax year 2020 and prior year amended returns filed before 6/1/2021 based on either the IRS received date on IDRS or the date the taxpayer claims to have filed for returns not yet showing as received on IDRS. Employees can use IDRS Command Code TRDBV, Element/Data Lines 15 and 16 to determine if a return was filed on Paper. See Exhibit 2.3.73-3, COMMAND CODE TRDBV.	1/1/2021 to 10/15/2022
Returns held in Submission Processing's Unpostables or ERS Rejects Units; including returns held for issues regarding the claimed Health Insurance Premium Tax Credit for Individuals: TAS will not accept a case where the return is in ERS Status 900 (overflow), 100 (initial screening stage), 281-284 (systemic pilot program non-workable suspense), or 481-484 (systemic pilot program, workable suspense). TAS will not accept any systemic burden cases (Criteria 5 -7) where the sole issue is the return is assigned to Unpostables or ERS Rejects Units.	5/18/2022 to 10/15/2022

Do not refer cases to TAS involving a Taxpayer Protection Program (TPP) Unpostable 126 Reason Code 0 that has been closed. In these instances, the taxpayer has verified identity either via the TPP phone line or the Identity Verification Service website. Once the unpostable is closed and the taxpayers have requested a direct deposit refund, most taxpayers will receive their refund within two weeks. If the unpostable is closed and the taxpayers requested a paper check, most taxpayers will receive their refund within four weeks. There is nothing TAS can do to accelerate issuance of the refund.

See the TAS Criteria Determinator tool for assistance in determining if a taxpayer's issue meets TAS case acceptance criteria.

What TAS Cannot Do

TAS cannot obtain a refund for a taxpayer within 24 hours. TAS follows the same manual refund procedures as all other IRS employees contained in IRM 21.4.4, Manual Refunds. IRS should not tell taxpayers or transfer taxpayers to TAS with an expectation that TAS can get their refund any sooner than normal manual refund processing timeframes.

Per IRM 21.4.6.5.11.1, Offset Bypass Refund, if a TOP debt exists, the IRS has no authority to issue an OBR. TAS cannot bypass this either so do not send the taxpayer to TAS.

Communication with Taxpayers

Last year TAS was not able to meet its normal timeframes to contact taxpayers due to reduced IRS staffing and employees being evacuated from the workspace because of COVID-19. Due to ongoing challenges faced by everyone Servicewide, TAS continues to be in the same position again this year. When advising taxpayers of the date they will be contacted by TAS, let them know that it could take up to four weeks for them to hear from their Case Advocate because of high volumes of TAS referrals. Please share with taxpayers that TAS employees are diligently working to serve taxpayers, but we are experiencing delays and interruptions in working cases due to the widespread impact on IRS operations from COVID-19. Once a request for assistance (AMS e-911) meeting TAS case acceptance criteria has been sent to TAS additional e-911s should not be sent to TAS until the four-week time period from the original e-911 has passed.

After a case has been assigned, the Case Advocate will discuss with the taxpayer what actions will be performed to resolve their issue. Due to the COVID-19 impact on IRS operations the time needed to resolve a taxpayer's issue may be greater than normal. Therefore, do not provide the taxpayer with an estimated timeframe for resolution before sending the referral to TAS.

Before sending a taxpayer's inquiry to TAS, the IRS needs to verify a correct address for the taxpayer and include it on the e-911; otherwise TAS is unable to correspond with the taxpayer. The e-911 systemically populates with the IDRS address, but the assistor can erase that address and input the correct address. Please be sure the address and contact information on the e-911 is current before sending the referral to TAS.

WASHINGTON — The Internal Revenue Service today revised frequently asked questions (FAQs) for the 2021 Earned Income Tax Credit (FS-2022-30) to educate eligible taxpayers on how to properly claim the credit when they prepare and file their 2021 tax return.

The Earned Income Tax Credit (EITC) helps low- to moderate-income workers and families in the form of a credit to either reduce the taxes owed or an added payment to increase a tax refund. The amount of the credit may change if the taxpayer has children, dependents, are disabled or meet other criteria.

These FAQ’s detail what the EITC is, how it was expanded for 2021, which taxpayers are eligible, and how to claim it. 

Question 15, “Can I elect to use my 2019 earned income to figure my Earned Income Tax Credit for 2021?” was revised.

File for free and use direct deposit

Taxpayers with income is $73,000 or less can file their federal tax returns electronically for free through the IRS Free File Program. The fastest way to receive a tax refund is to file electronically and have it direct deposited into a financial account. Refunds can be directly deposited into bank accounts, prepaid debit cards or mobile apps as long as a routing and account number is provided.

More information about reliance is available.

WASHINGTON – The Internal Revenue Service made an important enhancement to the “Where’s My Refund?” online tool this week, introducing a new feature that allows taxpayers to check the status of their current tax year and two previous years’ refunds. 

Taxpayers can select any of the three most recent tax years to check their refund status. They’ll need their Social Security number or ITIN, filing status and expected refund amount from the original filed tax return for the tax year they’re checking. 

Previously, “Where’s My Refund?” only displayed the status of the most recently filed tax return within the past two tax years. Information available to those calling the refund hotline will be limited to the 2021 tax return. 

Using “Where’s My Refund?”, taxpayers can start checking the status of their refund within:

The IRS reminds taxpayers that Online Account continues to be the best option for finding their prior year adjusted gross income, balance due or other type of account information.

“We encourage those who expect a refund, but requested an extension, to file as soon as they’re ready. We process returns on a first-in basis, so the sooner the better,” said IRS Commissioner Chuck Rettig. “There’s really no reason to wait until October 17 if filers have the relevant information to file now. Free File is still available for extension recipients to use to prepare and file their federal tax return for free.”

Electronic filing is open 24/7 and the IRS continues to receive returns and issue refunds. Once taxpayers have filed, they can track their refund with “Where's My Refund?”

About the ‘Where’s My Refund?’ tool

This helpful tool, accessible on IRS.gov or the IRS2Go mobile app, allows taxpayers to track their refund through three stages: 

1. Return received.
2. Refund approved.
3. Refund sent. 

The tool is updated once a day, usually overnight, and gives taxpayers a projected refund issuance date as soon as it’s approved. 

It’s also one of the most popular online features available from IRS. The “Where’s My Refund?” tool was developed in 2002 and was used by taxpayers more than 776 million times in 2021. 

Enhancing taxpayer experience & IT modernization

The IRS continues to enhance the customer experience by enhancing and expanding digital tools that deliver improved services to taxpayers.

“The IRS is committed to identifying opportunities to make improvements in real time for taxpayers and the tax professional community,” said Rettig. “This enhancement to ‘Where’s My Refund?’ is just one of many.”

Additional refund status information

There’s no need to call the IRS to check on refund status unless it has been more than 21 days since the return was filed or the tool says the IRS can provide more information. 

If the IRS needs more information to process the return, the taxpayer will be contacted by mail. 

For more information about checking the status of a tax refund, please visit IRS.gov/refunds.

WASHINGTON – The IRS today issued a revised set of frequently asked questions for the 2021 Child Tax Credit. These frequently asked questions (FAQs) are released to the public in Fact Sheet 2022-29, May 20, 2022.

These FAQ revisions are as follows:

• Topic A: General Information: Updated questions 1,2,3,4,5,8,9,10,11,13,14,15,16
• Topic E: Advance Payment Process of the Child Tax Credit: Updated questions 2,3
• Topic F: Updating Your Child Tax Credit Information During 2021: Removed questions 1,2 and updated 3,4
• Topic G: Receiving Advance Child Tax Credit Payments: Updated questions 1,6,7,9,10,11
• Topic H: Reconciling Your Advance Child Tax Credit Payments on Your 2021 Tax Return: Updated questions 1,2,9 and removed 10
• Topic J: Unenrolling from Advance Payments: Updated question 1 and removed 2,3,4,5,6,7
• Topic K: Verifying Your Identity to View your Payments2021 Child Tax Credit: Updated 2,3,5,6 and removed 7
• Topic L: Commonly Asked Shared-Custody Questions: Updated 1 and 2

More information about reliance is available.

WASHINGTON — The Internal Revenue Service today announced that interest rates will increase for the calendar quarter beginning July 1, 2022. The rates will be: 

Under the Internal Revenue Code, the rate of interest is determined on a quarterly basis. For taxpayers other than corporations, the overpayment and underpayment rate is the federal short-term rate plus 3 percentage points.

Generally, in the case of a corporation, the underpayment rate is the federal short-term rate plus 3 percentage points, and the overpayment rate is the federal short-term rate plus 2 percentage points. The rate for large corporate underpayments is the federal short-term rate plus 5 percentage points. The rate on the portion of a corporate overpayment of tax exceeding $10,000 for a taxable period is the federal short-term rate plus one-half (0.5) of a percentage point.

The interest rates announced today are computed from the federal short-term rate determined during April 2022 to take effect May 1, 2022, based on daily compounding.

Revenue Ruling 2022-11 announcing the rates of interest, is attached and will appear in Internal Revenue Bulletin 2022-23, dated June 6, 2022.

Revenue Ruling 2022-11; Interest rates: underpayments and overpayments. The rates for interest determined under Section 6621 of the code for the calendar quarter beginning July 1, 2022, will be 5 percent for overpayments (4 percent in the case of a corporation), 5 percent for underpayments, and 7 percent for large corporate underpayments. The rate of interest paid on the portion of a corporate overpayment exceeding $10,000 will be 2.5 percent.

Revenue Ruling 2022-11 will be in IRB 2022-23, dated June 6, 2022.