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.

Notice 2022-28 provides guidance under the Internal Revenue Code (Code) to employees and employers using employer leave-based donation programs on the federal income and employment tax treatment of cash payments made by employers under such programs to aid victims of the further invasion of Ukraine by the Russian Federation beginning on February 24, 2022 (further Russian invasion of Ukraine).  Under employer leave-based donation programs, employees may elect to forego their accumulated leave and employers make cash donations up to the dollar amount of the foregone leave to tax-exempt entities described in section 170(c) of the Code (section 170(c) organizations) that provide aid to victims of the further Russian invasion of Ukraine.

Notice 2022-28 will appear in IRB 2022-23, date June 6, 2022.

Notice 2022-25 sets forth updates on the corporate bond monthly yield curve, the corresponding spot segment rates for May 2022 used under § 417(e)(3)(D), the 24-month average segment rates applicable for May 2022, and the 30-year Treasury rates, as reflected by the application of § 430(h)(2)(C)(iv). 

Notice 2022-25 will appear in IRB 2022-23, dated June 6, 2022.

Revenue Ruling 2022-10 provides various prescribed rates for federal income tax purposes including the applicable federal interest rates, the adjusted applicable federal interest rates, the adjusted federal long-term rate, and the adjusted federal long-term tax-exempt rate. These rates are determined as prescribed by § 1274. 

The rates are published monthly for purposes of sections 42, 382, 412, 642, 1288, 1274, 7520, 7872, and various other sections of the Internal Revenue Code.

Revenue Ruling 2022-10 will be in IRB:  2022-23, dated June 6, 2022.

Notice 2022-27 provides a 6 month extension of the temporary relief from the physical presence requirement in § 1.401(a) 21(d)(6)(i) for a participant election required to be witnessed by a plan representative or a notary public if the participant election is witnessed by a notary public or by a plan representative, using an electronic system that satisfies the applicable requirements specified in section III.A and B, respectively, of Notice 2021-03.

Notice 2022-27 will be in IRB: 2022-22, dated May 31, 2022.

Today, the IRS published the latest executive column, “A Closer Look,” which features Ken Corbin, IRS Taxpayer Experience Officer, discussing how the IRS is working to serve residents of Puerto Rico. This year marks the first time in history that many families with children in Puerto Rico will be eligible to claim the Child Tax Credit, which has been expanded to provide up to $3,600 per child. “We know we must start from the ground up to reach out to Puerto Rico residents who may have little or no experience filing a federal tax return or receiving the credit,” said Corbin. “Not only do we want them to know about the credit, but we also want them to know there is help – some of it free - for getting it.” Read more here. Read the Spanish version here.

“A Closer Look” is a column from IRS executives that covers a variety of timely issues of interest to taxpayers and the tax community. It also provides a detailed look at key issues affecting everything from IRS operations and employees to issues involving taxpayers and tax professionals.

Check here for prior posts and new updates.

WASHINGTON — Although filing season has come and gone, the Internal Revenue Service recognizes taxpayers still need assistance. To help taxpayers, the IRS today announced many Taxpayer Assistance Centers (TACs) around the country, including Puerto Rico, will be open and offering face-to-face help on Saturday, May 14.

This special Saturday help is available from 9 a.m. to 4 p.m., and without an appointment. Normally, TACs are open by appointment only on weekdays.

“We’re offering Saturday office hours so people can get the help they need,” said Taxpayer Experience Officer and IRS Wage & Investment Division Commissioner Ken Corbin. “We recognize and understand not everyone can get to an appointment during normal business hours.”

The IRS.gov webpage, Contact your local office, lists all TAC services offered during the event and regular office hours. Many have used a Saturday visit to ask about IRS identity protection services, or to request Individual Taxpayer Identification Numbers (ITINs), refunds and payment options. Taxpayers can make payments by check or money order. The IRS will not accept cash during these events.

People can also ask about using the IRS’s Tax Withholding Estimator, reconciling the advance Child Tax Credit or third-round of Economic Impact Payments. They can inquire about a tax bill, an IRS audit or a TAC’s other available services. If assistance is not available from IRS employees specializing in these services, individuals will receive a referral for them. Taxpayer Advocate Service employees may also be available to assist with issues that meet certain criteria.

Foreign language interpreters will be available. IRS staff will schedule appointments for a later date for deaf or hard-of-hearing individuals who need sign language interpreter services.

Before going to a TAC, Corbin encouraged everyone to visit IRS.gov where they’ll find many online resources that are safe, secure, convenient and explain how to prepare for a visit. This information is available in both English and Spanish.

“We’d like to help everyone get the most out of their time with us,” he said. “Because appointments aren’t necessary for these special Saturday hours, wait times can be longer than usual, so plan accordingly and come prepared.”

Come prepared with paperwork
To arrive prepared, individuals should bring the following information:

During the visit, IRS staff may also request the following information:

The IRS follows Centers for Disease Control social distancing guidelines for COVID-19, and availability may change without notice. When required by CDC guidance, such as in high transmission counties, it's mandatory for people to wear face masks and social distance at these events.

Free tax return services provided at Puerto Rico TAC
IRS Volunteer Income Tax Assistance (VITA) community partners will be available at the Guaynabo, Puerto Rico, TAC providing free tax preparation. Additional tax preparation assistance can be found in Puerto Rico by using the VITA/TCE Locator Tool. Puerto Rico residents can enter 00638 in the zip code field, and search in a 100-mile radius to get a list of open sites.

Tax return preparation will not be available at any of the other event locations. However, some community partners are still providing free tax preparation services even though the filing season ended April 18. The VITA Locator Tool lists community partners that are still open.

Anyone who still needs to file a 2021 federal tax return can use these free, safe and convenient resources:

More information:

Revenue Procedure 2022-22 provides simplified procedures for certain bona fide residents of the Commonwealth of Puerto Rico (Puerto Rico) to claim the child tax credit under § 24.   The Department of the Treasury and the Internal Revenue Service (IRS) have provided these procedures to make it easier for certain bona fide residents of Puerto Rico to file taxable year 2021 Federal tax returns to claim the child tax credit.

Revenue Procedure 2022-22 will be in IRB:  2022-21, dated 05/23/2022.

WASHINGTON — The Internal Revenue Service today issued guidance for certain individuals in Puerto Rico on how to file and claim the Child Tax Credit payments that they are entitled to receive under the American Rescue Plan Act.

"It's important for residents of Puerto Rico to know that starting with Tax Year 2021, having only one child qualifies you for the Child Tax Credit," said IRS Commissioner Chuck Rettig. "We want everyone in Puerto Rico who's entitled to this benefit to file to receive the Child Tax Credit."

Residents of Puerto Rico must file a federal tax return with the IRS to claim the Child Tax Credit. The credit can be claimed on Form 1040-PR, Planilla para la Declaración de la Contribución Federal sobre el Trabajo por Cuenta Propia, Form 1040-SS, U.S. Self-Employment Tax Return, Form 1040, U.S. Individual Income Tax Return, or Form 1040-SR, U.S. Tax Return for Seniors. Form 1040-PR is a Spanish-language form. Form 1040 and Form 1040-SR have Spanish-language versions. One of these tax returns can be filed to claim the Child Tax Credit even after last month's filing deadline. In fact, families who don't owe taxes to the IRS can file their 2021 tax return and claim the Child Tax Credit for the 2021 tax year at any point until April 15, 2025, without any penalty.

Revenue Procedure 2022-22PDF provides details for bona fide residents of Puerto Rico who have children but do not have a 2021 federal tax filing requirement, providing them with a simplified way to file one of these tax returns with the IRS to claim the Child Tax Credit. They may follow one of the simplified procedures announced today if:

The simplified filing procedures direct eligible Form 1040-PR and Form 1040-SS filers to follow the instructions for those forms except that they are not required to report their modified adjusted gross income on line 1 of Part I of the tax return. Eligible Form 1040 and Form 1040-SR filers are directed to follow the instructions for those forms except that they are not required to report their modified adjusted gross income on lines 1 through 3 of Schedule 8812 (Form 1040), Credits for Qualifying Children and Other Dependents.

For 2021, the American Rescue Plan increased the Child Tax Credit from $2,000 per qualifying child to:

• $3,600 for children ages 5 and under at the end of 2021; and
• $3,000 for children ages 6 through 17 at the end of 2021.

The American Rescue Plan also made the credit fully refundable. This means that bona fide residents of Puerto Rico can claim the full amount of the credit for taxable year 2021 even if they had no income and paid no U.S. Social Security taxes.

All filers may file a Schedule LEP (Form 1040), Request for Change in Language Preference (also available as Anexo LEP Formulario 1040(SP), Solicitud para Cambiar la Preferencia de Idioma), with their tax return to request a change in language preference for further communications from the IRS.

For more information, please visit IRS.gov. To search for forms and instructions in Spanish, see Forms, Instructions & Publications.