Here are your updates from the IRS this week.
Second Quarter Interest Rates Increase
For the first time in more than three years, interest rates are being increased. For the quarter beginning April 1, 2022, the rates will be:
- 4% for overpayments (3% for corporations)
- 1.5% for the portion of a corporate overpayment exceeding $10,000
- 4% for underpayments
- 6% for large corporate underpayments
Rates are determined for each category based on the federal short-term rate, and adjusted (or not) on a quarterly basis.
Checking Refund Status
The IRS wants those expecting refunds to know that the fastest and easiest way to check on their refund status is by using the “Where’s my Refund” tool on IRS.gov. The mobile app, IRS2Go is also an efficient option. Filing electronically and using direct deposit is the fastest way to file and receive a refund, often within 21 days, though some situations may require more time. These situations include claiming the Earned Income Tax Credit or Additional Child Tax Credit, returns that need additional review or have errors, or those affected by identity theft or fraud. The IRS urges recipients to ignore refund myths; refunds cannot be expedited by ordering a tax transcript, calling the IRS, or calling their tax preparer.
Resource Page Launched
The IRS has launched a special new page to provide the most updated details and information affecting the 2022 tax filing season. The “special tax season alerts” page will address critical tax law changes related to the pandemic, as well as provide quick information regarding filing returns. Information affecting those whose previous year returns are backlogged and awaiting processing will also be provided.
Want to Improve the IRS?
The IRS is seeking “civic minded volunteers” to serve on the Taxpayer Advisory Panel (TAP). The TAP submits dozens of recommendations to the IRS each year; 193 were made in 2021 alone. Many recent suggestions have already been implemented. Applicants must be US citizens current with federal tax obligations who are able commit to the expected volunteer hours. They must also pass a background check and not be registered lobbyists or Treasury or IRS employees. Applications are due April 8.