https://www.investopedia.com/irs-interest-rates-q1-2022-stable-5210760What is the IRS underpayment interest rate for 2022?
3% plus the federal short-term rate (0.22%) for a total rate of 3.22% for most filers. The IRS sets interest rates on a quarterly basis. There are separate rates for corporations, depending on the amount of underpayment.
How Are IRS Interest Rates Compounded?
Interest rates charged or paid by the IRS are compounded daily, meaning each day the interest is calculated on the previous day's balance plus interest.
Help me out Mustachers. I used an online calculator and got absurdly high numbers.
If I owe ~$3500 in tax, what would the monthly interest look like? Thanks.
Just trying to spread the payback out a few months so we don't need to dip into our emergency fund - unless the interest is crazy high. If so I'll pay it off immediately.
