IRS Interest Rates Continue To Climb
Posted by taxguru on August 15, 2022
In spite of the Biden Gang’s attempts to pretend that there is no such thing as Inflation, IRS is required to adjust how much they charge for late payments and pay out for late refunds.
As of October 1, 2002, the rate will move from the current 5.0% APR to 6.0% APR.
Here is their official press release, announcing this:
IRS announces interest rate increases for the fourth quarter of 2022; 6% rate applies to most taxpayers starting Oct. 1
Three months from now, there will most likely be another IRS announcement of an even higher rate as of January 1, 2023.
For those people trying to maximize their return on investment, this presents an opportunity to earn much more than banks are paying. In earlier times when IRS interest rates were higher than bank savings accounts, I can recall some clients and others holding off on filing amended refund returns for longer than normal in order to accrue more interest from IRS. I’m not necessarily advising this, but just noting that it is a tactic that some people do in times like this.
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