Important Tax Update and Filing Deadlines for Summer 2022

Authored By Jim Wilhelm | Director, SC&H Tax Services

As you read this, you are probably gearing up for Memorial Day and a long weekend at the beach. For most, this holiday signifies the start of summer and hot days ahead. But before you pack the family car and head out, take a look at these upcoming tax deadlines so you aren’t caught off guard.

IRS Interest rates

The IRS just announced their third quarter interest rates and, not surprisingly, they are going up for the second time in 2022. Here’s what you need to know:

  • The new interest rate for underpayments and overpayments is now 5%, up from 4% earlier this year
  • Virginia’s interest rates will be 2% higher than the corresponding federal rates, reaching 7% for underpayments and overpayments
  • Large corporations face a separate, higher underpayment interest rate of 7%
  • These rates are adjusted quarterly, and as the Federal Reserve moves rates higher, over and underpayment rates will follow suit

As a related aside, we are seeing that the IRS is still behind and struggling to match payments to returns, therefore electronic payment is the optimal choice.

June 15 Deadline

June 15th is when several common payments and filings are due, namely:

  • Second quarter federal and state estimated tax payments for businesses and individuals
  • Maryland personal property tax returns
  • US taxpayers living abroad need to file or extend their 2021 individual returns by this date

July 15 Deadline

During tax season, Maryland delayed the following tax payments for individual taxpayers to July 15th:

  • Balances due with your 2021 Maryland Form 502
  • Balances due with your 2021 Maryland extension voucher
  • First and second quarter estimated tax payments

They did not extend the due date for business or trust payments. So, for individual taxpayers who may have filed their returns/extensions and still have payments to make, this is your friendly reminder.

Please reach out to our SC&H Tax team if you have any questions about the above deadlines and interest rate updates. Have a great summer!