Status of unprocessed Form 1040 returns
The IRS is opening mail within normal time frames and all paper and electronic individual refund returns received prior to April 2021 have been processed if the return had no errors or did not require further review.

As of May 20, 2022, the IRS had 9.8 million unprocessed individual returns, which include returns received before 2022, and new tax year 2021 returns. Of these, 2 million returns require error correction or other special handling, and 7.8 million are paper returns waiting to be reviewed and processed. This work does not typically require the IRS to correspond with taxpayers but does require special handling by an IRS employee. In these instances, it’s taking the IRS more than 21 days to issue any related refunds; in some cases, this work could take 90 to 120 days. If a correction is made to a refundable tax credit claimed on the return, the IRS will send taxpayers an explanation.

Status of processing Form 1040-X
As of May 21, 2022, the IRS had 2.1 million unprocessed Forms 1040-X and are processing these returns in the order received. The current time frame can be more than 20 weeks instead of up to 16. The IRS requests that taxpayers don’t file a second tax return or contact the IRS about the status. Taxpayers should continue to check Where’s My Amended Return? for the most up-to-date processing status available.

Status of unemployment compensation exclusion corrections
The IRS continues to review tax year 2020 returns and process corrections for taxpayers who paid taxes on unemployment compensation to exclude the compensation from income, if the taxpayer is eligible. To date, the IRS has issued over 11.8 million refunds totaling $14.5 billion. The IRS is now concentrating on more complex returns. Some taxpayers will receive refunds, while others will have their overpayment applied to taxes due or other debts. The IRS will mail a letter to affected taxpayers to inform them of the corrections, generally within 30 days from when the corrections were completed.

Status of processing Form 941
As of May 25, 2022, the IRS had 3.7 million unprocessed Forms 941. If you filed electronically and received an acknowledgment, you don’t need to take further action other than promptly responding to any requests for information. As of May 25, 2022, the total inventory of unprocessed Forms 941-X was approximately 241,000, some of which cannot be processed until the related Forms 941 are processed. While not all these returns involve a COVID credit, the inventory is being worked at two sites (Cincinnati and Ogden) that have trained staff to work possible COVID credits.

Applicable Federal Rates for July 2022 Released (Rev. Rul. 2022-12) (Jun. 16, 2022) | via Wolters Kluwer IntelliConnect*

The IRS has released the applicable federal interest rates for July 2022. The AFRs are based on the average yield on outstanding marketable obligations of the United States government.

Annual Federal Interest Rates for July 2022

The annual interest rates are:

• Short-term rate is 2.37 percent
• Mid-term rate is 2.99 percent
• Long-term rate is 3.22 percent

Semiannual Rates

The semiannual interest rates are:

• Short-term rate is 2.36 percent
• Mid-term rate is 2.97 percent
• Long-term rate is 3.19 percent

Quarterly Rates

The quarterly interest rates are:

• Short-term rate is 2.35 percent
• Mid-term rate is 2.96 percent
• Long-term rate is 3.18 percent

Monthly Rates

Finally, monthly interest rates are:

• Short-term rate is 2.35 percent
• Mid-term rate is 2.95 percent
• Long-term rate is 3.17 percent

Code Sec. 1288(b) Rates

The Code Sec. 1288(b) interest rates, when using annual compounding, are:

• Short-term rate is 1.80 percent
• Mid-term rate is 2.27 percent
• Long-term rate is 2.43 percent

Additionally, the Code Sec. 382 adjusted federal long-term rate is 2.43 percent and the long-term tax-exempt rate is 2.43 percent.

Code Sec. 42(b)(1) Percentage

The appropriate interest rate for the low-income housing credit is:

• 7.72 percent for the 70-percent present-value, low-income housing credit, and
• 3.31 percent for the 30-percent present-value, low-income housing credit

Code Sec. 7520 AFR

The interest rate is 3.60 percent for determining:

• the present value of an annuity,
• an interest for life or a term of years, or
• a remainder or reversionary interest.

Blended Annual Rate for 2022

Code Sec. 7872(e)(2) blended annual rate for 2022 is 1.40 percent.

Rev. Rul. 2022-12

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