For calendar quarter beginning 10/1/2000, interest rates remain at 9% for noncorp. overpayments and underpayments, and corp. underpayments, 8% for corp. overpayments, 11% for large corp. underpayments, and 6.5% for the portion of corp. overpayments exceeding $10,000. Rates are unchanged from previous two quarters.
Section 6621 of the Internal Revenue Code establishes the rates for interest on tax overpayments and tax underpayments. Under section 6621(a)(1), the overpayment rate beginning October 1, 2000, is the sum of the federal short-term rate plus 3 percentage points (2 percentage points in the case of a corporation), except the rate for the portion of a corporate overpayment of tax exceeding $10,000 for a taxable period is the sum of the federal short-term rate plus 0.5 of a percentage point for interest computations made after December 31, 1994. Under section 6621(a)(2), the underpayment rate is the sum of the federal short-term rate plus 3 percentage points.
Section 6621(c) provides that for purposes of interest payable under section 6601 on any large corporate underpayment, the underpayment rate under section 6621(a)(2) is determined by substituting 5 percentage points for 3 percentage points. See section 6621(c) and section 301.6621-3 of the Regulations on Procedure and Administration for the definition of a large corporate underpayment and for the rules for determining the applicable date. Section 6621(c) and section 301.6621-3 are generally effective for periods after December 31, 1990.
Section 6621(b)(1) provides that the Secretary will determine the federal short-term rate for the first month in each calendar quarter.
Section 6621(b)(2)(A) provides that the federal short-term rate determined under section 6621(b)(1) for any month applies during the first calendar quarter beginning after such month.
Section 6621(b)(3) provides that the federal short-term rate for any month is the federal short-term rate determined during such month by the Secretary in accordance with section 1274(d), rounded to the nearest full percent (or, if a multiple of 1/2 of 1 percent, the rate is increased to the next highest full percent).
Notice 88-59, 1988-1 C.B. 546, announced that, in determining the quarterly interest rates to be used for overpayments and underpayments of tax under section 6621, the Internal Revenue Service will use the federal short-term rate based on daily compounding because that rate is most consistent with section 6621 which, pursuant to section 6622, is subject to daily compounding.
Rounded to the nearest full percent, the federal short- term rate based on daily compounding determined during the month of July 2000 is 6 percent. Accordingly, an overpayment rate of 9 percent (8 percent in the case of a corporation) and an underpayment rate of 9 percent are established for the calendar quarter beginning October 1, 2000. The overpayment rate for the portion of a corporate overpayment exceeding $10,000 for the calendar quarter beginning October 1, 2000, is 6.5 percent. The underpayment rate for large corporate underpayments for the calendar quarter beginning October 1, 2000, is 11 percent. These rates apply to amounts bearing interest during that calendar quarter.
Interest factors for daily compound interest for annual rates of 6.5 percent, 8 percent, 9 percent, and 11 percent are published in Tables 66, 69, 71, and 75 of Rev. Proc. 95-17, 1995-1 C.B. 556, 620, 623, 625, and 629.
Annual interest rates to be compounded daily pursuant to section 6622 that apply for prior periods are set forth in the tables accompanying this revenue ruling.
The principal author of this revenue ruling is Raymond Bailey of the Office of Assistant Chief Counsel (Administrative Provisions and Judicial Practice). For further information regarding this revenue ruling, contact Mr. Bailey on (202) 622-6226 (not a toll-free call).
TABLE OF INTEREST RATES
PERIODS BEFORE JUL. 1, 1975 PERIODS ENDING DEC. 31, 1986
OVERPAYMENTS AND UNDERPAYMENTS
In 1995-1 C.B.
PERIOD RATE DAILY RATE TABLE
------ ---- -----------------
Before Jul. 1, 1975 6% Table 2, pg. 557
Jul. 1, 1975 Jan. 31, 1976 9% Table 4, pg. 559
Feb. 1, 1976 Jan. 31, 1978 7% Table 3, pg. 558
Feb. 1, 1978 Jan. 31, 1980 6% Table 2, pg. 557
Feb. 1, 1980 Jan. 31, 1982 12% Table 5, pg. 560
Feb. 1, 1982 Dec. 31, 1982 20% Table 6, pg. 560
Jan. 1, 1983 Jun. 30, 1983 16% Table 37, pg. 591
Jul. 1, 1983 Dec. 31, 1983 11% Table 27, pg. 581
Jan. 1, 1984 Jun. 30, 1984 11% Table 75, pg. 629
Jul. 1, 1984 Dec. 31, 1984 11% Table 75, pg. 629
Jan. 1, 1985 Jun. 30, 1985 13% Table 31, pg. 585
Jul. 1, 1985 Dec. 31, 1985 11% Table 27, pg. 581
Jan. 1, 1986 Jun. 30, 1986 10% Table 25 pg. 579
Jul. 1, 1986 Dec. 31, 1986 9% Table 23, pg. 577
TABLE OF INTEREST RATES
FROM JAN. 1, 1987 Dec. 31, 1998
OVERPAYMENTS UNDERPAYMENTS
1995-1 C.B. 1995-1 C.B.
RATE TABLE PG RATE TABLE PG
---- ----- -- ---- ----- --
Jan. 1, 1987 Mar. 31, 1987 8% 21 575 9% 23 577
Apr. 1, 1987 Jun. 30, 1987 8% 21 575 9% 23 577
Jul. 1, 1987 Sep. 30, 1987 8% 21 575 9% 23 577
Oct. 1, 1987 Dec. 31, 1987 9% 23 577 10% 25 579
Jan. 1, 1988 Mar. 31, 1988 10% 73 627 11% 75 629
Apr. 1, 1988 Jun. 30, 1988 9% 71 625 10% 73 627
Jul. 1, 1988 Sep. 30, 1988 9% 71 625 10% 73 627
Oct. 1, 1988 Dec. 31, 1988 10% 73 627 11% 75 629
Jan. 1, 1989 Mar. 31, 1989 10% 25 579 11% 27 581
Apr. 1, 1989 Jun. 30, 1989 11% 27 581 12% 29 583
Jul. 1, 1989 Sep. 30, 1989 11% 27 581 12% 29 583
Oct. 1, 1989 Dec. 31, 1989 10% 25 579 11% 27 581
Jan. 1, 1990 Mar. 31, 1990 10% 25 579 11% 27 581
Apr. 1, 1990 Jun. 30, 1990 10% 25 579 11% 27 581
Jul. 1, 1990 Sep. 30, 1990 10% 25 579 11% 27 581
Oct. 1, 1990 Dec. 31, 1990 10% 25 579 11% 27 581
Jan. 1, 1991 Mar. 31, 1991 10% 25 579 11% 27 581
Apr. 1, 1991 Jun. 30, 1991 9% 23 577 10% 25 579
Jul. 1, 1991 Sep. 30, 1991 9% 23 577 10% 25 579
Oct. 1, 1991 Dec. 31, 1991 9% 23 577 10% 25 579
Jan. 1, 1992 Mar. 31, 1992 8% 69 623 9% 71 625
Apr. 1, 1992 Jun. 30, 1992 7% 67 621 8% 69 623
Jul. 1, 1992 Sep. 30, 1992 7% 67 621 8% 69 623
Oct. 1, 1992 Dec. 31, 1992 6% 65 619 7% 67 621
Jan. 1, 1993 Mar. 31, 1993 6% 17 571 7% 19 573
Apr. 1, 1993 Jun. 30, 1993 6% 17 571 7% 19 573
Jul. 1, 1993 Sep. 30, 1993 6% 17 571 7% 19 573
Oct. 1, 1993 Dec. 31, 1993 6% 17 571 7% 19 573
Jan. 1, 1994 Mar. 31, 1994 6% 17 571 7% 19 573
Apr. 1, 1994 Jun. 30, 1994 6% 17 571 7% 19 573
Jul. 1, 1994 Sep. 30, 1994 7% 19 573 8% 21 575
Oct. 1, 1994 Dec. 31, 1994 8% 21 575 9% 23 577
Jan. 1, 1995 Mar. 31, 1995 8% 21 575 9% 23 577
Apr. 1, 1995 Jun. 30, 1995 9% 23 577 10% 25 579
Jul. 1, 1995 Sep. 30, 1995 8% 21 575 9% 23 577
Oct. 1, 1995 Dec. 31, 1995 8% 21 575 9% 23 577
Jan. 1, 1996 Mar. 31, 1996 8% 69 623 9% 71 625
Apr. 1, 1996 Jun. 30, 1996 7% 67 621 8% 69 623
Jul. 1, 1996 Sep. 30, 1996 8% 69 623 9% 71 625
Oct. 1, 1996 Dec. 31, 1996 8% 69 623 9% 71 625
Jan. 1, 1997 Mar. 31, 1997 8% 21 575 9% 23 577
Apr. 1, 1997 Jun. 30, 1997 8% 21 575 9% 23 577
Jul. 1, 1997 Sep. 30, 1997 8% 21 575 9% 23 577
Oct. 1, 1997 Dec. 31, 1997 8% 21 575 9% 23 577
Jan. 1, 1998 Mar. 31, 1998 8% 21 575 9% 23 577
Apr. 1, 1998 Jun. 30, 1998 7% 19 573 8% 21 575
Jul. 1, 1998 Sep. 30, 1998 7% 19 573 8% 21 575
Oct. 1, 1998 Dec. 31, 1998 7% 19 573 8% 21 575
TABLE OF INTEREST RATES
FROM JANUARY 1, 1999 PRESENT
NONCORPORATE OVERPAYMENTS AND UNDERPAYMENTS
1995-1 C.B.
RATE TABLE PAGE
---- ----- ----
Jan. 1, 1999 Mar. 31, 1999 7% 19 573
Apr. 1, 1999 Jun. 30, 1999 8% 21 575
Jul. 1, 1999 Sep. 30, 1999 8% 21 575
Oct. 1, 1999 Dec. 31, 1999 8% 21 575
Jan. 1, 2000 Mar. 31, 2000 8% 69 623
Apr. 1, 2000 Jun. 30, 2000 9% 71 625
Jul. 1, 2000 Sep. 30, 2000 9% 71 625
Oct. 1, 2000 Dec 31, 2000 9% 71 625
TABLE OF INTEREST RATES
FROM JANUARY 1, 1999 PRESENT
CORPORATE OVERPAYMENTS AND UNDERPAYMENTS
OVERPAYMENTS UNDERPAYMENTS
1995-1 C.B. 1995-1 C.B.
RATE TABLE PG RATE TABLE PG
---- ----- -- ---- ----- --
Jan. 1, 1999 Mar. 31, 1999 6% 17 571 7% 19 573
Apr. 1, 1999 Jun. 30, 1999 7% 19 573 8% 21 575
Jul. 1, 1999 Sep. 30, 1999 7% 19 573 8% 21 575
Oct. 1, 1999 Dec. 31, 1999 7% 19 573 8% 21 575
Jan. 1, 2000 Mar. 31, 2000 7% 67 621 8% 69 623
Apr. 1, 2000 Jun. 30, 2000 8% 69 623 9% 71 625
Jul. 1, 2000 Sep. 30, 2000 8% 69 623 9% 71 625
Oct. 1, 2000 Dec. 31, 2000 8% 69 623 9% 71 625
TABLE OF INTEREST RATES FOR
LARGE CORPORATE UNDERPAYMENTS
FROM JANUARY 1, 1991 PRESENT
1995-1 C.B.
RATE TABLE PG
---- ----- --
Jan. 1, 1991 Mar. 31, 1991 13% 31 585
Apr. 1, 1991 Jun. 30, 1991 12% 29 583
Jul. 1, 1991 Sep. 30, 1991 12% 29 583
Oct. 1, 1991 Dec. 31, 1991 12% 29 583
Jan. 1, 1992 Mar. 31, 1992 11% 75 629
Apr. 1, 1992 Jun. 30, 1992 10% 73 627
Jul. 1, 1992 Sep. 30, 1992 10% 73 627
Oct. 1, 1992 Dec. 31, 1992 9% 71 625
Jan. 1, 1993 Mar. 31, 1993 9% 23 577
Apr. 1, 1993 Jun. 30, 1993 9% 23 577
Jul. 1, 1993 Sep. 30, 1993 9% 23 577
Oct. 1, 1993 Dec. 31, 1993 9% 23 577
Jan. 1, 1994 Mar. 31, 1994 9% 23 577
Apr. 1, 1994 Jun. 30, 1994 9% 23 577
Jul. 1, 1994 Sep. 30, 1994 10% 25 579
Oct. 1, 1994 Dec. 31, 1994 11% 27 581
Jan. 1, 1995 Mar. 31, 1995 11% 27 581
Apr. 1, 1995 Jun. 30, 1995 12% 29 583
Jul. 1, 1995 Sep. 30, 1995 11% 27 581
Oct. 1, 1995 Dec. 31, 1995 11% 27 581
Jan. 1, 1996 Mar. 31, 1996 11% 75 629
Apr. 1, 1996 Jun. 30, 1996 10% 73 627
Jul. 1, 1996 Sep. 30, 1996 11% 75 629
Oct. 1, 1996 Dec. 31, 1996 11% 75 629
Jan. 1, 1997 Mar. 31, 1997 11% 27 581
Apr. 1, 1997 Jun. 30, 1997 11% 27 581
Jul. 1, 1997 Sep. 30, 1997 11% 27 581
Oct. 1, 1997 Dec. 31, 1997 11% 27 581
Jan. 1, 1998 Mar. 31, 1998 11% 27 581
Apr. 1, 1998 Jun. 30, 1998 10% 25 579
Jul. 1, 1998 Sep. 30, 1998 10% 25 579
Oct. 1, 1998 Dec. 31, 1998 10% 25 579
Jan. 1, 1999 Mar. 31, 1999 9% 23 577
Apr. 1, 1999 Jun. 30, 1999 10% 25 579
Jul. 1, 1999 Sep. 30, 1999 10% 25 579
Oct. 1, 1999 Dec. 31, 1999 10% 25 579
Jan. 1, 2000 Mar. 31, 2000 10% 73 627
Apr. 1, 2000 Jun. 30, 2000 11% 75 629
Jul. 1, 2000 Sep. 30, 2000 11% 75 629
Oct. 1, 2000 Dec. 1, 2000 11% 75 629
TABLE OF INTEREST RATES FOR CORPORATE
OVERPAYMENTS EXCEEDING $10,000
FROM JANUARY 1, 1995 PRESENT
1995-1 C.B.
RATE TABLE PG
---- ----- --
Jan. 1, 1995 Mar. 31, 1995 6.5% 18 572
Apr. 1, 1995 Jun. 30, 1995 7.5% 20 574
Jul. 1, 1995 Sep. 30, 1995 6.5% 18 572
Oct. 1, 1995 Dec. 31, 1995 6.5% 18 572
Jan. 1, 1996 Mar. 31, 1996 6.5% 66 620
Apr. 1, 1996 Jun. 30, 1996 5.5% 64 618
Jul. 1, 1996 Sep. 30, 1996 6.5% 66 620
Oct. 1, 1996 Dec. 31, 1996 6.5% 66 620
Jan. 1, 1997 Mar. 31, 1997 6.5% 18 572
Apr. 1, 1997 Jun. 30, 1997 6.5% 18 572
Jul. 1, 1997 Sep. 30, 1997 6.5% 18 572
Oct. 1, 1997 Dec. 31, 1997 6.5% 18 572
Jan. 1, 1998 Mar. 31, 1998 6.5% 18 572
Apr. 1, 1998 Jun. 30, 1998 5.5% 16 570
Jul. 1. 1998 Sep. 30, 1998 5.5% 16 570
Oct. 1, 1998 Dec. 31, 1998 5.5% 16 570
Jan. 1, 1999 Mar. 31, 1999 4.5% 14 568
Apr. 1, 1999 Jun. 30, 1999 5.5% 16 570
Jul. 1, 1999 Sep. 30, 1999 5.5% 16 570
Oct. 1, 1999 Dec. 31, 1999 5.5% 16 570
Jan. 1, 2000 Mar. 31, 2000 5.5% 64 618
Apr. 1, 2000 Jun. 30, 2000 6.5% 66 620
Jul. 1, 2000 Sep. 30, 2000 6.5% 66 620
Oct. 1, 2000 Dec. 31, 2000 6.5% 66 620