Internal Revenue Service
Revenue Ruling
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smSection 6621. -- Determination of Interest Rate
26 CFR 301.6621-1: Interest rate.
Section 6621 of the Internal Revenue Code establishes the rates for interest on tax overpayments and tax underpayments. Under 6621(a)(1), the overpayment rate beginning April 1, 2001, 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 .5 of a percentage point for interest computations made after December 31, 1994. Under 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 6601 on any large corporate underpayment, the underpayment rate under 6621(a)(2) is determined by substituting "5 percentage points" for "3 percentage points." See 6621(c) and 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 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 6621(b)(1) for any month applies during the first calendar quarter beginning after such month.
Section 6621(b)(2)(B) provides that in determining the addition to tax under 6654 for failure to pay estimated tax for any taxable year, the federal short, 19term rate that applies during the third month following such taxable year also applies during the first 15 days of the fourth month following such taxable year.
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 1274(d), rounded to the nearest full percent (or, if a multiple of January 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 6621, the Internal Revenue Service will use the federal short-term rate based on daily compounding because that rate is most consistent with 6621 which, pursuant to 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 January 2001 is 5 percent. Accordingly, an overpayment rate of 8 percent (7 percent in the case of a corporation) and an underpayment rate of 8 percent are established for the calendar quarter beginning April 1, 2001. The overpayment rate for the portion of a corporate overpayment exceeding $10,000 for the calendar quarter beginning April 1, 2001, is 5.5 percent. The underpayment rate for large corporate underpayments for the calendar quarter beginning April 1, 2001, is 10 percent. These rates apply to amounts bearing interest during that calendar quarter.
Under 6621(b)(2)(B), the 9 percent rate that applies to estimated tax underpayments for the first calendar quarter in 2001, as provided in Rev.Rul. 2000-57, 2000-50 I.R.B. 579, also applies to such underpayments for the first 15 days in April 2001.
Interest factors for daily compound interest for annual rates of 5.5 percent, 7 percent, 8 percent, and 10 percent are published in Tables 16, 19, 21, and 25 of Rev. Proc. 95-17, 1995-1 C.B. 556, 570, 573, 575, and 579.
Annual interest rates to be compounded daily pursuant to 6622 that apply for prior periods are set forth in the tables accompanying this revenue ruling.
DRAFTING INFORMATION
The principal author of this revenue ruling is Raymond Bailey of the Office of Associate Chief Counsel (Procedure & Administration), Administrative Provisions & Judicial Practice Division. 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
Jan. 1, 2001--Mar. 31, 2001 9% 23 577
Apr. 1, 2001--Jun. 30, 2001 8% 21 575
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
Jan. 1, 2001--Mar. 31, 2001 8% 21
575 9% 23 577
Apr. 1, 2001--Jun. 30, 2001 7% 19
573 8% 21 575
TABLE
OF INTEREST RATES FOR
LARGE CORPORATE
UNDERPAYMENTS
FROM JANUARY 1,
1991 - PRESENT
1995-1
C.B.
RATES 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. 31, 2000 11% 75
629
Jan. 1, 2001--Mar. 31, 2001 11% 27
581
Apr. 1, 2001--Jun. 30, 2001 10% 25
579
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
Jan. 1, 2001--Mar. 31, 2001 6.5% 18
572
Apr. 1, 2001--Jun. 30, 2001 5.5% 16
570