Interest Rates for the Quarter to Decrease

The Internal Revenue Service today announced that interest rates for the calendar quarter beginning Oct. 1, 1989, will decrease to ten percent for overpayments and eleven percent for underpayments.

Under the Tax Reform Act of 1986, the rate of interest is determined on a quarterly basis, and the rate on underpayments is one percent higher than the rate on overpayments. The rate announced today is computed from the federal short-term rate based on daily compounding determined during July 1989.

Revenue Ruling 89-99, announcing the new rates of interest is attached and will appear in Internal Revenue Bulletin No. 1989-35, dated Aug. 28, 1989.

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