|
March 13, 1996
IRS Announces Quarterly Interest Rates
WASHINGTON - The Internal Revenue Service today announced that
interest rates for the calendar quarter beginning April 1, 1996,
will decrease to seven percent for overpayments, eight percent for
underpayments, and ten percent for large corporate underpayments.
The overpayment rate for the portion of corporate overpayments
exceeding $10,000 will decrease to 5.5 percent.
Under the Internal Revenue Code, the rate of interest is
determined on a quarterly basis, the rate on underpayments is one
percent higher than the rate on overpayments, and the rate for large
corporate underpayments is two percent higher than the rate on
underpayments. The interest paid on 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. The
interest rates announced today are computed from the federal
short-term rate based on daily compounding determined during January
1996.
Rev. Rul. 96-17, announcing the new rates of interest, is
attached and will appear in Internal Revenue Bulletin No. 1996-13
dated March 25, 1996.
PART I
Section 6621.-- Determination of Interest Rate
26 CFR 301.6621-1: Interest rate.
Rev. Rul. 96-17
Section 6621 of the Internal Revenue Code establishes different
rates for interest on tax overpayments and interest on tax
underpayments. Under § 6621(a)(1), the overpayment rate is the sum
of the federal short-term rate plus 2 percentage points, 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 § 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 rate. 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 individual estimated tax for
any taxable year, the federal short-term 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 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 § 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
1996 is 5 percent. Accordingly, an overpayment rate of 7 percent and
an underpayment rate of 8 percent are established for the calendar
quarter beginning April 1, 1996. The overpayment rate for the
portion of corporate overpayments exceeding $10,000 for the calendar
quarter beginning April 1, 1996, is 5.5 percent. The underpayment
rate for large corporate underpayments for the calendar quarter
beginning April 1, 1996, 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
individual estimated tax underpayments for the first calendar
quarter in 1996, as provided in Rev. Rul. 95-78, 1995-49 I.R.B. 6,
also applies to such underpayments for the first 15 days in April
1996.
Interest factors for daily compound interest for annual rates of
5.5 percent, 7 percent, 8 percent, and 10 percent are published in
Tables 64, 67, 69, and 73 of Rev. Proc. 95-17, 1995-1 C.B. 556, 618,
621, 623, and 627.
Annual interest rates to be compounded daily pursuant to § 6622
that apply for prior periods are set forth in the accompanying
tables.
DRAFTING INFORMATION
The principal author of this revenue ruling is Marcia Rachy of
the Office of Assistant Chief Counsel (Income Tax and Accounting).
For further information regarding this revenue ruling, contact Ms.
Rachy on (202) 622-4940 (not a toll-free call).
TABLE OF INTEREST RATES
PERIODS BEFORE JUL. 1, 1975 - PERIODS ENDING DEC. 31, 1986
OVERPAYMENTS AND UNDERPAYMENTS
DAILY RATE TABLE
PERIOD RATE IN 1995-1 C.B.
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 - PRESENT
OVERPAYMENTS | UNDERPAYMENTS
----------------------------
RATE TABLE PG| RATE TABLE PG
1995-1 C.B. 1995-1 C.B.
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, I993--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
TABLE OF INTEREST RATES FOR
LARGE CORPORATE UNDERPAYMENTS
FROM JANUARY 1, 1991 - PRESENT
RATE TABLE PG
1995-1 C.B.
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
TABLE OF INTEREST RATES FOR CORPORATE
OVERPAYMENTS EXCEEDING $10,000
FROM JANUARY 1, 1995 - PRESENT
RATE TABLE PG
1995-1 C.B.
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
The principal author of this revenue ruling is Marcia Rachy of
the Office of Assistant Chief Counsel (Income Tax and Accounting).
For further information regarding this revenue ruling, contact Ms.
Rachy on (202) 622-4940 (not a toll-free call).
TABLE OF INTEREST RATES
PERIODS BEFORE JUL. 1, 1975 - PERIODS ENDING DEC. 31, 1986
OVERPAYMENTS AND UNDERPAYMENTS
DAILY RATE TABLE
PERIOD RATE IN 1995-1 C.B.
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 - PRESENT
OVERPAYMENTS | UNDERPAYMENTS
----------------------------
RATE TABLE PG| RATE TABLE PG
1995-1 C.B. 1995-1 C.B.
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, I993--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
TABLE OF INTEREST RATES FOR
LARGE CORPORATE UNDERPAYMENTS
FROM JANUARY 1, 1991 - PRESENT
RATE TABLE PG
1995-1 C.B.
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
TABLE OF INTEREST RATES FOR CORPORATE
OVERPAYMENTS EXCEEDING $10,000
FROM JANUARY 1, 1995 - PRESENT
RATE TABLE PG
1995-1 C.B.
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
Previous | Next
1996 IRS News Releases | News Releases Main | Home
|
