us-irs-revenue-rulings-rr-98-61•rr-98-61.pdf
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# Part I Section 6621 .-- Determination of Interest Rate 26 CFR 301.6621-1: Interest rate. Rev. Rul. 98-61 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 January 1, 1999, 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 § 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. <!-- PageBreak --> 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-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 October 1998 is 4 percent. Accordingly, an overpayment rate <!-- PageBreak --> of 7 percent (6 percent in the case of a corporation) and an underpayment rate of 7 percent are established for the calendar quarter beginning January 1, 1999. The overpayment rate for the portion of a corporate overpayment exceeding $10,000 for the calendar quarter beginning January 1, 1999, is 4.5 percent. The underpayment rate for large corporate underpayments for the calendar quarter beginning January 1, 1999, is 9 percent. These rates apply to amounts bearing interest during that calendar quarter. The 7 percent rate also applies to estimated tax underpayments for the first calendar quarter in 1999 and for the first 15 days in April 1999. Interest factors for daily compound interest for annual rates of 7 percent, 6 percent, 4.5 percent, and 9 percent are published in Tables 19, 17, 14, and 23 of Rev. Proc. 95-17, 1995- 1 C.B. 556, 573, 571, 568, and 577. 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 Assistant Chief Counsel (Income Tax and Accounting) . For further information regarding this revenue ruling, contact Mr. Bailey on (202) 622-6226 (not a toll-free call) . <!-- PageBreak --> <!-- PageBreak --> ## TABLE OF INTEREST RATES PERIODS BEFORE JUL. 1, 1975 - PERIODS ENDING DEC. 31, 1986 OVERPAYMENTS AND UNDERPAYMENTS PERIOD RATE 1995-1 DAILY RATE C.B. 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. 3 30, 1986 10% Table 25 pg . 579 Jul. 1, 1986 -- Dec. 31, 1986 9% Table 23, pg. 577 <!-- PageBreak --> 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, 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, 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, 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 <!-- PageBreak --> ### 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 TABLE OF INTEREST RATES FROM JANUARY 1, 1999 - PRESENT CORPORATE OVERPAYMENTS AND UNDERPAYMENTS OVERPAYMENTS UNDERPAYMENTS 1995-1 C.B. PG 1995-1 C.B. RATE TABLE RATE TABLE PG Jan. 1, 1999 -- Mar. 31, 1999 6% 17 571 7 % 19 573 <!-- PageBreak --> #### 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, 19 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. 3 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 <!-- PageBreak --> ##### 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
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