2/28/97 IR-97-9 IRS Announces Quarterly Interest Rates Washington -- The Internal Revenue Service today announced that interest rates for the calendar quarter beginning April 1, 1997, will remain at eight percent for overpayments, nine percent for underpayments, and eleven percent for large corporate underpayments. The overpayment rate for the portion of corporate overpayments exceeding $10,000 will remain at 6.5 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 1997. Rev. Rul. 97-12, announcing the new rates of interest, is attached and will appear in Internal Revenue Bulletin No. 1997-11 dated March 17, 1997. X X X Part I Section 6621.-- Determination of Interest Rate 26 CFR 301.6621-1: Interest rate. Rev. Rul. 97-12 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 1997 is 6 percent. Accordingly, an overpayment rate of 8 percent and an underpayment rate of 9 percent are established for the calendar quarter beginning April 1, 1997. The overpayment rate for the portion of corporate overpayments exceeding $10,000 for the calendar quarter beginning April 1, 1997, is 6.5 percent. The underpayment rate for large corporate underpayments for the calendar quarter beginning April 1, 1997, is 11 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 1997, as provided in Rev. Rul. 96-61, 1996-52 I.R.B. 24, also applies to such underpayments for the first 15 days in April 1997. Interest factors for daily compound interest for annual rates of 6.5 percent, 8 percent, 9 percent, and 11 percent are published in Tables 18, 21, 23, and 27 of Rev. Proc. 95-17, 1995- 1 C.B. 556, 572, 575, 577, and 581. 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 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). ÚÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ¿ ³ ³ ³ TABLE OF INTEREST RATES ³ ³ ³ ³ PERIODS BEFORE JUL. 1, 1975 - PERIODS ENDING DEC. 31, 1986 ³ ³ ³ ³ OVERPAYMENTS AND UNDERPAYMENTS ³ ³ ³ ³ ³ ³PERIOD DAILY RATE TABLE ³ ³ RATE IN 1995-1 C.B. ³ ³ ³ ³Before Jul. 1, 1975 6% Table 2, pg. 557 ³ ³Jul. 1, 1975--Jan. 31, 1976 9% Table 4, pg. 559 ³ ³Feb. 1, 1976--Jan. 31, 1978 7% Table 3, pg. 558 ³ ³Feb. 1, 1978--Jan. 31, 1980 6% Table 2, pg. 557 ³ ³Feb. 1, 1980--Jan. 31, 1982 12% Table 5, pg. 560 ³ ³Feb. 1, 1982--Dec. 31, 1982 20% Table 6, pg. 560 ³ ³Jan. 1, 1983--Jun. 30, 1983 16% Table 37, pg. 591 ³ ³Jul. 1, 1983--Dec. 31, 1983 11% Table 27, pg. 581 ³ ³Jan. 1, 1984--Jun. 30, 1984 11% Table 75, pg. 629 ³ ³Jul. 1, 1984--Dec. 31, 1984 11% Table 75, pg. 629 ³ ³Jan. 1, 1985--Jun. 30, 1985 13% Table 31, pg. 585 ³ ³Jul. 1, 1985--Dec. 31, 1985 11% Table 27, pg. 581 ³ ³Jan. 1, 1986--Jun. 30, 1986 10% Table 25 pg. 579 ³ ³Jul. 1, 1986--Dec. 31, 1986 9% Table 23, pg. 577 ³ ÀÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÙ ÚÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ¿ ³ TABLE OF INTEREST RATES ³ ³ FROM JAN. 1, 1987 - PRESENT ³ ³ ³ ³ OVERPAYMENTS ³ UNDERPAYMENTS ³ ³ ÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÅÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ ³ ³ RATE TABLE PG ³ RATE TABLE PG ³ ³ 1995-1 C.B. 1995-1 C.B. ³ ³ ³ ³Jan. 1, 1987--Mar. 31, 1987 8% 21 575 ³ 9% 23 577 ³ ³Apr. 1, 1987--Jun. 30, 1987 8% 21 575 ³ 9% 23 577 ³ ³Jul. 1, 1987--Sep. 30, 1987 8% 21 575 ³ 9% 23 577 ³ ³Oct. 1, 1987--Dec. 31, 1987 9% 23 577 ³ 10% 25 579 ³ ³Jan. 1, 1988--Mar. 31, 1988 10% 73 627 ³ 11% 75 629 ³ ³Apr. 1, 1988--Jun. 30, 1988 9% 71 625 ³ 10% 73 627 ³ ³Jul. 1, 1988--Sep. 30, 1988 9% 71 625 ³ 10% 73 627 ³ ³Oct. 1, 1988--Dec. 31, 1988 10% 73 627 ³ 11% 75 629 ³ ³Jan. 1, 1989--Mar. 31, 1989 10% 25 579 ³ 11% 27 581 ³ ³Apr. 1, 1989--Jun. 30, 1989 11% 27 581 ³ 12% 29 583 ³ ³Jul. 1, 1989--Sep. 30, 1989 11% 27 581 ³ 12% 29 583 ³ ³Oct. 1, 1989--Dec. 31, 1989 10% 25 579 ³ 11% 27 581 ³ ³Jan. 1, 1990--Mar. 31, 1990 10% 25 579 ³ 11% 27 581 ³ ³Apr. 1, 1990--Jun. 30, 1990 10% 25 579 ³ 11% 27 581 ³ ³Jul. 1, 1990--Sep. 30, 1990 10% 25 579 ³ 11% 27 581 ³ ³Oct. 1, 1990--Dec. 31, 1990 10% 25 579 ³ 11% 27 581 ³ ³Jan. 1, 1991--Mar. 31, 1991 10% 25 579 ³ 11% 27 581 ³ ³Apr. 1, 1991--Jun. 30, 1991 9% 23 577 ³ 10% 25 579 ³ ³Jul. 1, 1991--Sep. 30, 1991 9% 23 577 ³ 10% 25 579 ³ ³Oct. 1, 1991--Dec. 31, 1991 9% 23 577 ³ 10% 25 579 ³ ³Jan. 1, 1992--Mar. 31, 1992 8% 69 623 ³ 9% 71 625 ³ ³Apr. 1, 1992--Jun. 30, 1992 7% 67 621 ³ 8% 69 623 ³ ³Jul. 1, 1992--Sep. 30, 1992 7% 67 621 ³ 8% 69 623 ³ ³Oct. 1, 1992--Dec. 31, 1992 6% 65 619 ³ 7% 67 621 ³ ³Jan. 1, 1993--Mar. 31, 1993 6% 17 571 ³ 7% 19 573 ³ ³Apr. 1, 1993--Jun. 30, 1993 6% 17 571 ³ 7% 19 573 ³ ³Jul. 1, 1993--Sep. 30, 1993 6% 17 571 ³ 7% 19 573 ³ ³Oct. 1, 1993--Dec. 31, 1993 6% 17 571 ³ 7% 19 573 ³ ³Jan. 1, 1994--Mar. 31, 1994 6% 17 571 ³ 7% 19 573 ³ ³Apr. 1, 1994--Jun. 30, 1994 6% 17 571 ³ 7% 19 573 ³ ³Jul. 1, 1994--Sep. 30, 1994 7% 19 573 ³ 8% 21 575 ³ ³Oct. 1, 1994--Dec. 31, 1994 8% 21 575 ³ 9% 23 577 ³ ³Jan. 1, 1995--Mar. 31, 1995 8% 21 575 ³ 9% 23 577 ³ ³Apr. 1, 1995--Jun. 30, 1995 9% 23 577 ³ 10% 25 579 ³ ³Jul. 1, 1995--Sep. 30, 1995 8% 21 575 ³ 9% 23 577 ³ ³Oct. 1, 1995--Dec. 31, 1995 8% 21 575 ³ 9% 23 577 ³ ³Jan. 1, 1996--Mar. 31, 1996 8% 69 623 ³ 9% 71 625 ³ ³Apr. 1, 1996--Jun. 30, 1996 7% 67 621 ³ 8% 69 623 ³ ³Jul. 1, 1996--Sep. 30, 1996 8% 69 623 ³ 9% 71 625 ³ ³Oct. 1, 1996--Dec. 31, 1996 8% 69 623 ³ 9% 71 625 ³ ³Jan. 1, 1997--Mar. 31, 1997 8% 21 575 ³ 9% 23 577 ³ ³Apr. 1, 1997--Jun. 30, 1997 8% 21 575 ³ 9% 23 577 ³ ÀÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÁÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÙ ÚÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ¿ ³ TABLE OF INTEREST RATES FOR ³ ³ LARGE CORPORATE UNDERPAYMENTS ³ ³ ³ ³ PRE E FROM JANUARY 1, 1991 - PRESENT ³ ³ ³ RATE TABLE PG ³ ³ ³ 1995-1 C.B. ³ ³ ³ ³ ³Jan. 1, 1991--Mar. 31, 1991 ³ 13% 31 585 ³ ³Apr. 1, 1991--Jun. 30, 1991 ³ 12% 29 583 ³ ³Jul. 1, 1991--Sep. 30, 1991 ³ 12% 29 583 ³ ³Oct. 1, 1991--Dec. 31, 1991 ³ 12% 29 583 ³ ³Jan. 1, 1992--Mar. 31, 1992 ³ 11% 75 629 ³ ³Apr. 1, 1992--Jun. 30, 1992 ³ 10% 73 627 ³ ³Jul. 1, 1992--Sep. 30, 1992 ³ 10% 73 627 ³ ³Oct. 1, 1992--Dec. 31, 1992 ³ 9% 71 625 ³ ³Jan. 1, 1993--Mar. 31, 1993 ³ 9% 23 577 ³ ³Apr. 1, 1993--Jun. 30, 1993 ³ 9% 23 577 ³ ³Jul. 1, 1993--Sep. 30, 1993 ³ 9% 23 577 ³ ³Oct. 1, 1993--Dec. 31, 1993 ³ 9% 23 577 ³ ³Jan. 1, 1994--Mar. 31, 1994 ³ 9% 23 577 ³ ³Apr. 1, 1994--Jun. 30, 1994 ³ 9% 23 577 ³ ³Jul. 1, 1994--Sep. 30, 1994 ³ 10% 25 579 ³ ³Oct. 1, 1994--Dec. 31, 1994 ³ 11% 27 581 ³ ³Jan. 1, 1995--Mar. 31, 1995 ³ 11% 27 581 ³ ³Apr. 1, 1995--Jun. 30, 1995 ³ 12% 29 583 ³ ³Jul. 1, 1995--Sep. 30, 1995 ³ 11% 27 581 ³ ³Oct. 1, 1995--Dec. 31, 1995 ³ 11% 27 581 ³ ³Jan. 1, 1996--Mar. 31, 1996 ³ 11% 75 629 ³ ³Apr. 1, 1996--Jun. 30, 1996 ³ 10% 73 627 ³ ³Jul. 1, 1996--Sep. 30, 1996 ³ 11% 75 629 ³ ³Oct. 1, 1996--Dec. 31, 1996 ³ 11% 75 629 ³ ³Jan. 1, 1997--Mar. 31, 1997 ³ 11% 27 581 ³ ³Apr. 1, 1997--Jun. 30, 1997 ³ 11% 27 581 ³ ÀÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÁÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÙ ÚÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ¿ ³ TABLE OF INTEREST RATES FOR CORPORATE ³ ³ OVERPAYMENTS EXCEEDING $10,000 ³ ³ ³ ³ FROM JANUARY 1, 1995 - PRESENT ³ ³ ³ ³ ³ RATE TABLE PG ³ ³ ³ 1995-1 C.B. ³ ³ ³ ³ ³Jan. 1, 1995--Mar. 31, 1995 ³ 6.5% 18 572 ³ ³Apr. 1, 1995--Jun. 30, 1995 ³ 7.5% 20 574 ³ ³Jul. 1, 1995--Sep. 30, 1995 ³ 6.5% 18 572 ³ ³Oct. 1, 1995--Dec. 31, 1995 ³ 6.5% 18 572 ³ ³Jan. 1, 1996--Mar. 31, 1996 ³ 6.5% 66 620 ³ ³Apr. 1, 1996--Jun. 30, 1996 ³ 5.5% 64 618 ³ ³Jul. 1, 1996--Sep. 30, 1996 ³ 6.5% 66 620 ³ ³Oct. 1, 1996--Dec. 31, 1996 ³ 6.5% 66 620 ³ ³Jan. 1, 1997--Mar. 31, 1997 ³ 6.5% 18 572 ³ ³Apr. 1, 1997--Jun. 30, 1997 ³ 6.5% 18 572 ³ ÀÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÁÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÙ