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IRS Announces Change In Interest Rates For Fourth Quarter.

AUG. 30, 2004

Rev. Rul. 2004-92; 2004-2 C.B. 466

DATED AUG. 30, 2004
DOCUMENT ATTRIBUTES
  • Institutional Authors
    Internal Revenue Service
  • Cross-Reference
    For a related IRS news release, see Doc 2004-17437.

    Section 6621. -- Determination of Interest Rate

    26 CFR 301.6621-1: Interest rate.
  • Code Sections
  • Subject Area/Tax Topics
  • Jurisdictions
  • Language
    English
  • Tax Analysts Document Number
    Doc 2004-17436
  • Tax Analysts Electronic Citation
    2004 TNT 169-9
Citations: Rev. Rul. 2004-92; 2004-2 C.B. 466

Rev. Rul. 2004-92

Interest rates; underpayments and overpayments. The rate of interest determined under section 6621 of the Code for the calendar quarter beginning October 1, 2004, will be 5 percent for overpayments (4 percent in the case of a corporation), 5 percent for underpayments, and 7 percent for large corporate underpayments. The rate of interest paid on the portion of a corporate overpayment exceeding $10,000 will be 2.5 percent.

Section 6621 of the Internal Revenue Code establishes the rates for interest on tax overpayments and tax underpayments. Under section 6621(a)(1), the overpayment rate 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 section 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 section 6601 on any large corporate underpayment, the underpayment rate under section 6621(a)(2) is determined by substituting "5 percentage points" for "3 percentage points." See section 6621(c) and section 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 section 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 section 6621(b)(1) for any month applies during the first calendar quarter beginning after such month.

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 section 6621, the Internal Revenue Service will use the federal short-term rate based on daily compounding because that rate is most consistent with section 6621 which, pursuant to section 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 July 2004 is 2 percent. Accordingly, an overpayment rate of 5 percent (4 percent in the case of a corporation) and an underpayment rate of 5 percent are established for the calendar quarter beginning October 1, 2004. The overpayment rate for the portion of a corporate overpayment exceeding $10,000 for the calendar quarter beginning October 1, 2004, is 2.5 percent. The underpayment rate for large corporate underpayments for the calendar quarter beginning October 1, 2004, is 7 percent. These rates apply to amounts bearing interest during that calendar quarter.

Interest factors for daily compound interest for annual rates of 2.5 percent, 4 percent, 5 percent, and 7 percent are published in Tables 58, 61, 63, and 67 of Rev. Proc. 95-17, 1995-1 C.B. 556, 612, 615, 617, and 621.

Annual interest rates to be compounded daily pursuant to section 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 Crystal Foster of the Office of Associate Chief Counsel (Procedure & Administration). For further information regarding this revenue ruling, contact Ms. Foster at (202) 622-7326 (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

 

 Jul. 1, 2001--Sep. 30, 2001        7%             19         573

 

 Oct. 1, 2001--Dec. 31, 2001        7%             19         573

 

 Jan. 1, 2002--Mar. 31, 2002        6%             17         571

 

 Apr. 1, 2002--Jun. 30, 2002        6%             17         571

 

 Jul. 1, 2002--Sep. 30, 2002        6%             17         571

 

 Oct. 1, 2002--Dec. 31, 2002        6%             17         571

 

 Jan. 1, 2003--Mar. 31, 2003        5%             15         569

 

 Apr. 1, 2003--Jun. 30, 2003        5%             15         569

 

 Jul. 1, 2003--Sep. 30, 2003        5%             15         569

 

 Oct. 1, 2003--Dec. 31, 2003        4%             13         567

 

 Jan. 1, 2004--Mar. 31, 2004        4%             61         615

 

 Apr. 1, 2004--Jun. 30, 2004        5%             63         617

 

 Jul. 1, 2004--Sep. 30, 2004        4%             61         615

 

 Oct. 1, 2004--Dec. 31, 2004        5%             63         617

 

 

                        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

 

 Jul. 1, 2001--Sep. 30, 2001   6%     17   571     7%       19      573

 

 Oct. 1, 2001--Dec. 31, 2001   6%     17   571     7%       19      573

 

 Jan. 1, 2002--Mar. 31, 2002   5%     15   569     6%       17      571

 

 Apr. 1, 2002--Jun. 30, 2002   5%     15   569     6%       17      571

 

 Jul. 1, 2002--Sep. 30, 2002   5%     15   569     6%       17      571

 

 Oct. 1, 2002--Dec. 31, 2002   5%     15   569     6%       17      571

 

 Jan. 1, 2003--Mar. 31, 2003   4%     13   567     5%       15      569

 

 Apr. 1, 2003--Jun. 30, 2003   4%     13   567     5%       15      569

 

 Jul. 1, 2003--Sep. 30, 2003   4%     13   567     5%       15      569

 

 Oct. 1, 2003--Dec. 31, 2003   3%     11   565     4%       13      567

 

 Jan. 1, 2004--Mar. 31, 2004   3%     59   613     4%       61      615

 

 Apr. 1, 2004--Jun. 30, 2004   4%     61   615     5%       63      617

 

 Jul. 1, 2004--Sep. 30, 2004   3%     59   613     4%       61      615

 

 Oct. 1, 2004--Dec. 31, 2004   4%     61   615     5%       63      617

 

 

                      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, 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

 

 Jul. 1, 2001--Sep. 30, 2001    9%            23        577

 

 Oct. 1, 2001--Dec. 31, 2001    9%            23        577

 

 Jan. 1, 2002--Mar. 31, 2002    8%            21        575

 

 Apr. 1, 2002--Jun. 30, 2002    8%            21        575

 

 Jul. 1, 2002--Sep. 30, 2002    8%            21        575

 

 Oct. 1, 2002--Dec. 30, 2002    8%            21        575

 

 Jan. 1, 2003--Mar. 31, 2003    7%            19        573

 

 Apr. 1, 2003--Jun. 30, 2003    7%            19        573

 

 Jul. 1, 2003--Sep. 30, 2003    7%            19        573

 

 Oct. 1, 2003--Dec. 31, 2003    6%            17        571

 

 Jan. 1, 2004--Mar. 31, 2004    6%            65        619

 

 Apr. 1, 2004--Jun. 30, 2004    7%            67        621

 

 Jul. 1, 2004--Sep. 30, 2004    6%            65        619

 

 Oct. 1, 2004--Dec. 31, 2004    7%            67        621

 

 

                 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

 

 Jul. 1, 2001--Sep. 30, 2001            4.5%  14        568

 

 Oct. 1, 2001--Dec. 31, 2001            4.5%  14        568

 

 Jan. 1, 2002--Mar. 31, 2002            3.5%  12        566

 

 Apr. 1, 2002--Jun. 30, 2002            3.5%  12        566

 

 Jul. 1, 2002--Sep. 30, 2002            3.5%  12        566

 

 Oct. 1, 2002--Dec. 31, 2002            3.5%  12        566

 

 Jan. 1, 2003--Mar. 31, 2003            2.5%  10        564

 

 Apr. 1, 2003--Jun. 30, 2003            2.5%  10        564

 

 Jul. 1, 2003--Sep. 30, 2003            2.5%  10        564

 

 Oct. 1, 2003--Dec. 31, 2003            1.5%   8        562

 

 Jan. 1, 2004--Mar. 31, 2004            1.5%  56        610

 

 Apr. 1, 2004--Jun. 30, 2004            2.5%  58        612

 

 Jul. 1, 2004--Sep. 30, 2004            1.5%  56        610

 

 Oct. 1, 2004--Dec. 31, 2004            2.5%  58        612
DOCUMENT ATTRIBUTES
  • Institutional Authors
    Internal Revenue Service
  • Cross-Reference
    For a related IRS news release, see Doc 2004-17437.

    Section 6621. -- Determination of Interest Rate

    26 CFR 301.6621-1: Interest rate.
  • Code Sections
  • Subject Area/Tax Topics
  • Jurisdictions
  • Language
    English
  • Tax Analysts Document Number
    Doc 2004-17436
  • Tax Analysts Electronic Citation
    2004 TNT 169-9
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