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INTEREST RATES UNCHANGED FOR FOURTH QUARTER OF 1999.

AUG. 16, 1999

Rev. Rul. 99-36; 1999-2 I.R.B. 319

DATED AUG. 16, 1999
DOCUMENT ATTRIBUTES
  • Institutional Authors
    Internal Revenue Service
  • Cross-Reference

    For the full text of IR-1999-70, see Doc 1999-27114 (1 original page)

    or the Tax Notes Today Table of Contents for August 17, 1999.

    PART I

    SECTION 6621. -- DETERMINATION OF INTEREST RATE

    26 CFR 301.6621-1: Interest rate.

  • Code Sections
  • Subject Area/Tax Topics
  • Index Terms
    interest, rates
    interest, rates, large corporate underpayments
  • Jurisdictions
  • Language
    English
  • Tax Analysts Document Number
    Doc 1999-27116 (9 original pages)
  • Tax Analysts Electronic Citation
    1999 TNT 158-17
Citations: Rev. Rul. 99-36; 1999-2 I.R.B. 319

Rev. Rul. 99-36

[1] 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 beginning October 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 section 6621(a)(2), the underpayment rate is the sum of the federal short-term rate plus 3 percentage points.

[2] 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.

[3] Section 6621(b)(1) provides that the Secretary will determine the federal short-term rate for the first month in each calendar quarter.

[4] 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.

[5] 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 section 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).

[6] 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.

[7] Rounded to the nearest full percent, the federal short- term rate based on daily compounding determined during the month of July 1999 is 5 percent. Accordingly, an overpayment rate of 8 percent (7 percent in the case of a corporation) and an underpayment rate of 8 percent are established for the calendar quarter beginning October 1, 1999. The overpayment rate for the portion of a corporate overpayment exceeding $10,000 for the calendar quarter beginning October 1, 1999, is 5.5 percent. The underpayment rate for large corporate underpayments for the calendar quarter beginning October 1, 1999, is 10 percent. These rates apply to amounts bearing interest during that calendar quarter.

[8] Interest factors for daily compound interest for annual rates of 5.5 percent, 7 percent, 8 percent, and 10 percent are published in Tables 16, 19, 21, and 25 of Rev. Proc. 95-17, 1995-1 C.B. 556, 570, 573, 575, and 579.

[9] 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

[10] 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).

                        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

 

 

                   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

 

 

                        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

 

 

                      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

 

 

                 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
DOCUMENT ATTRIBUTES
  • Institutional Authors
    Internal Revenue Service
  • Cross-Reference

    For the full text of IR-1999-70, see Doc 1999-27114 (1 original page)

    or the Tax Notes Today Table of Contents for August 17, 1999.

    PART I

    SECTION 6621. -- DETERMINATION OF INTEREST RATE

    26 CFR 301.6621-1: Interest rate.

  • Code Sections
  • Subject Area/Tax Topics
  • Index Terms
    interest, rates
    interest, rates, large corporate underpayments
  • Jurisdictions
  • Language
    English
  • Tax Analysts Document Number
    Doc 1999-27116 (9 original pages)
  • Tax Analysts Electronic Citation
    1999 TNT 158-17
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