98-4953. Quarterly IRS Interest Rates Used in Calculating Interest on Overdue Accounts and Refunds on Customs Duties

[Federal Register Volume 63, Number 38 (Thursday, February 26, 1998)]
[Notices]
[Page 9905]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-4953]


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DEPARTMENT OF THE TREASURY

Customs Service


Quarterly IRS Interest Rates Used in Calculating Interest on 
Overdue Accounts and Refunds on Customs Duties

AGENCY: Customs Service, Treasury.

ACTION: General notice.

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SUMMARY: This notice advises the public of the quarterly Internal 
Revenue Service interest rates used to calculate interest on overdue 
accounts and refunds of Customs duties. For the quarter beginning 
January 1, 1998, the rates will remain at 8 percent for overpayments 
and 9 percent for underpayments. This notice is published for the 
convenience of the importing public and Customs personnel.

EFFECTIVE DATE: January 1, 1998.

FOR FURTHER INFORMATION CONTACT: Ronald Wyman, Accounting Services 
Division, Accounts Receivable Group, 6026 Lakeside Boulevard, 
Indianapolis, Indiana 46278, [phone], extension 1349.

SUPPLEMENTARY INFORMATION:

Background

    Pursuant to 19 U.S.C. 1505 and Treasury Decision 85-93, published 
in the Federal Register on May 29, 1985 (50 FR 21832), the interest 
rate paid on applicable overpayments or underpayments of Customs duties 
shall be in accordance with the Internal Revenue Code rate established 
under 26 U.S.C. 6621 and 6622. Interest rates are determined based on 
the short-term Federal rate. The interest rate that Treasury pays on 
overpayments will be the short-term Federal rate plus two percentage 
points. The interest rate paid to the Treasury for underpayments will 
be the short-term Federal rate plus three percentage points. The rates 
will be rounded to the nearest full percentage.
    The interest rates are determined by the Internal Revenue Service 
(IRS) on behalf of the Secretary of the Treasury based on the average 
market yield on outstanding marketable obligations of the U.S. with 
remaining periods to maturity of 3 years or less, and fluctuate 
quarterly. The rates effective for a quarter are determined during the 
first-month period of the previous quarter.
    The IRS announced December 15, 1997, that the rates of interest for 
the second quarter of fiscal year (FY) 1998 (the period of January 1-
March 31, 1998) will remain at 8 percent for overpayments and 9 percent 
for underpayments. These interest rates are subject to change for the 
third quarter of FY-1998 (the period of April 1-June 30, 1998).
    For the convenience of the importing public and Customs personnel 
the following list of Internal Revenue Service interest rates used, 
since July 1, 1975 to date, to calculate interest on overdue accounts 
and refunds of Customs duties, is published in summary format.

------------------------------------------------------------------------
                                                      Under-     Over-  
             Beginning date                Ending    payments   payments
                                            date    (percent)  (percent)
------------------------------------------------------------------------
070175.................................     013176          9          9
020176.................................     013178          7          7
020178.................................     013180          6          6
020180.................................     013182         12         12
020182.................................     123182         20         20
010183.................................     063083         16         16
070183.................................     123184         11         11
010185.................................     063085         13         13
070185.................................     123185         11         11
010186.................................     063086         10         10
070186.................................     123186          9          9
010187.................................     093087          9          8
100187.................................     123187         10          9
010188.................................     033188         11         10
040188.................................     093088         10          9
100188.................................     033189         11         10
040189.................................     093089         12         11
100189.................................     033191         11         10
040191.................................     123191         10          9
010192.................................     033192          9          8
040192.................................     093092          8          7
100192.................................     063094          7          6
070194.................................     093094          8          7
100194.................................     033195          9          8
040195.................................     063095         10          9
070195.................................     033196          9          8
040196.................................     063096          8          7
070196.................................     033198          9          8
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    Dated: February 23, 1998.
Samuel H. Banks,
Acting Commissioner of Customs.
[FR Doc. 98-4953 Filed 2-25-98; 8:45 am]
BILLING CODE 4820-02-P