96-9110. Quarterly IRS Interest Rates Used in Calculating Interest on Overdue Accounts and Refunds on Customs Duties

[Federal Register Volume 61, Number 72 (Friday, April 12, 1996)]
[Notices]
[Page 16286]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-9110]



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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: Notice of calculation and interest.

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SUMMARY: This notice advises the public of a decrease in the quarterly 
Internal Revenue Service interest rates used to calculate interest on 
overdue accounts and refunds of Customs duties. For the quarter 
beginning April 1, 1996, the rates will be 7 percent for overpayments 
and 8 percent for underpayments. This notice is published for the 
convenience of the importing public and Customs personnel.

EFFECTIVE DATE: April 1, 1996.

FOR FURTHER INFORMATION CONTACT: Harry Bunn, Accounting Services 
Division, Accounts Receivable Group, 6026 Lakeside Boulevard, 
Indianapolis, Indiana 46278, [phone], extension 1252.

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 
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 rates of interest for the third 
quarter of Fiscal Year (FY) 1996 (the period of April 1-June 30, 1996) 
are decreased to 7 percent for overpayments and 8 percent for 
underpayments from the respective rates of 8 and 9 percent that were 
established in the fourth quarter of FY 1995 (the period of July 1-
September 30, 1995). These rates will remain in effect through June 30, 
1996, and are subject to change for the fourth quarter of FY 1996 (the 
period of July 1-September 30, 1996).

    Dated: April 5, 1996.
Michael H. Lane,
Acting Commissioner of Customs.
[FR Doc. 96-9110 Filed 4-11-96; 8:45 am]
BILLING CODE 4820-02-P