[Federal Register Volume 64, Number 139 (Wednesday, July 21, 1999)]
[Notices]
[Pages 39190-39191]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-18559]
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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 (underpayments) and refunds (overpayments) of Customs duties.
Due to recent legislation, the interest rate applicable to overpayments
by corporations is now different than the interest rate for
overpayments by non-corporations. For the quarter beginning July 1,
1999, the interest rates for overpayments will be 7 percent for
corporations and 8 percent for non-corporations, and the interest rate
for underpayments will be 8 percent. This notice is published for the
convenience of the importing public and Customs personnel.
EFFECTIVE DATE: July 1, 1999.
FOR FURTHER INFORMATION CONTACT: Ronald Wyman, Accounting Services
Division, Accounts Receivable Group, 6026 Lakeside Boulevard,
Indianapolis, Indiana 46278, (317) 298-1200, 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. Section 6621 was recently amended (at
paragraph (a)(1)(B) by the Internal Revenue Service Restructuring and
Reform Act of 1998, Pub.L. 105-206, 112 Stat. 685) to provide different
interest rates applicable to overpayments: one for corporations and one
for non-corporations. The interest rate applicable to underpayments is
not so bifurcated.
The interest rates are based on the short-term Federal rate and
determined by the Internal Revenue Service (IRS) on behalf of the
Secretary of the Treasury on a quarterly basis. The rates effective for
a quarter are determined during the first-month period of the previous
quarter.
In Revenue Ruling 99-27 (see, 1999-25 IRB 7, dated June 21, 1999),
the IRS determined the rates of interest for the fourth quarter of
fiscal year (FY) 1999 (the period of July 1--September 30, 1999). The
interest rate paid to the Treasury for underpayments will be the short-
term Federal rate (5%) plus three percentage points (3%) for a total of
eight percent (8%). For corporate overpayments, the rate is the Federal
short-term rate (5%) plus two percentage points (2%) for a total of
seven percent (7%). For overpayments made by non-corporations, the rate
is the Federal short-term rate (5%) plus three percentage points (3%)
for a total of eight percent (8%). These interest rates are subject to
change for the first quarter of FY-2000 (the period of October 1--
December 31, 1999).
For the convenience of the importing public and Customs personnel
the following list of Internal Revenue Service interest rates used,
covering the period from before July of 1974 to date, to calculate
interest on overdue accounts and refunds of Customs duties, is
published in summary format.
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Corporate
Under-payments Over-payments Overpayments
Beginning date Ending date (percent) (percent) (Eff. 1-1-99)
(pecent)
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Prior to 070174................................. 063075 6 6
070175.......................................... 013176 9 9
020176.......................................... 013178 7 7
020178.......................................... 013180 6 6
020180.......................................... 013182 12 2
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
[[Page 39191]]
040198.......................................... 123198 8 7
010199.......................................... 033199 7 7 6
040199.......................................... 093099 8 8 7
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Dated: July 16, 1999.
Raymond W. Kelly.
Commissioner of Customs
[FR Doc. 99-18559 Filed 7-20-99; 8:45 am]
BILLING CODE 4820-02-P
