98-19772. Quarterly IRS Interest Rates Used in Calculating Interest on Overdue Accounts and Refunds on Customs Duties

[Federal Register Volume 63, Number 142 (Friday, July 24, 1998)]
[Notices]
[Pages 39932-39933]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-19772]


-----------------------------------------------------------------------

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.

-----------------------------------------------------------------------

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 July 
1, 1998, 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: July 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.
    In Revenue Ruling 98-32 (1998-25 IRB 4, dated June 22, 1998), the 
IRS determined that the rates of interest for the fourth quarter of 
fiscal year (FY) 1998 (the period of July 1--September 30, 1998) will 
be 7 percent for overpayments and 8 percent for underpayments. These 
interest rates are subject to change for the first quarter of FY-1999 
(the period of October 1--December 31, 1998).
    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.

------------------------------------------------------------------------
                                   Ending    Underpayments  Overpayments
        Beginning  date             date       (percent)      (percent) 
------------------------------------------------------------------------
Before July....................      063075             6             6 
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 

[[Page 39933]]

                                                                        
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 
040198.........................      093098             8             7 
------------------------------------------------------------------------

    Dated: July 20, 1998.
Samuel H. Banks,
Acting Commissioner of Customs.
[FR Doc. 98-19772 Filed 7-23-98; 8:45 am]
BILLING CODE 4820-02-P