95-19026. Applicable Rate of Interest on Nonqualified Withdrawals From a Capital Construction Fund

[Federal Register Volume 60, Number 148 (Wednesday, August 2, 1995)]
[Notices]
[Page 39480]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-19026]



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DEPARTMENT OF TRANSPORTATION

Maritime Administration

DEPARTMENT OF COMMERCE

National Oceanic and Atmospheric Administration

DEPARTMENT OF THE TREASURY

Internal Revenue Service


Applicable Rate of Interest on Nonqualified Withdrawals From a 
Capital Construction Fund

    Under the authority in Section 607(h)(4)(B) of the Merchant Marine 
Act, 1936, as amended (the Act, 46 U.S.C. 1177(h)(4)(B)), we hereby 
determine and announce that the applicable rate of interest on the 
amount of additional tax attributable to any nonqualified withdrawals 
from a Capital Construction Fund established under Section 607 of the 
Act shall be 7.18 percent, with respect to nonqualified withdrawals 
made in the taxable year beginning in 1995. The determination of the 
applicable rate of interest with respect to nonqualified withdrawals 
was computed, according to the joint regulations issued under the Act 
(46 CFR 391.7(e)(2)(ii)), by multiplying eight percent by the ratio 
which (a) the average yield on 5-year Treasury securities for the 
calendar year immediately preceding the beginning of such taxable year 
bears to (b) the average yield on 5-year Treasury securities for the 
calendar year 1970. The applicable rate so determined was computed to 
the nearest one-hundredth of one percent.
    So Ordered By: Maritime Administrator, Maritime Administration; 
Administrator, National Oceanic and Atmospheric Administration; 
Assistant Secretary for Tax Policy, Department of the Treasury.
    Dated: July 27, 1995.
A.J. Herberger,
Maritime Administrator.
D. James Baker,
Administrator, National Oceanic and Atmospheric Administration.
Leslie Samuals,
Assistant Secretary for Tax Policy.
[FR Doc. 95-19026 Filed 8-1-95; 8:45 am]
BILLING CODE 4910-81-P