[Federal Register: November 16, 1998 (Volume 63, Number 220)]
[Notices]               
[Page 63774-63775]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr16no98-146]

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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 
October 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: October 1, 1998.

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. 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 98-46 (see, 1998-39 IRB 10, dated September 28, 
1998), the IRS determined that the rates of interest for the first 
quarter of fiscal year (FY) 1999 (the period of October 1--December 31, 
1998) will be 7 percent for overpayments and 8 percent for 
underpayments. These interest rates are subject to change for the 
second quarter of FY-1999 (the period of January 1--March 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.

------------------------------------------------------------------------
                                    Underpayments        Overpayments
 Beginning date    Ending date        (percent)            (percent)
------------------------------------------------------------------------
Prior to.......
070174.........      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

[[Page 63775]]

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
040198.........      123198                  8                   7
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    Dated: November 10, 1998.
Raymond W. Kelly,
Commissioner of Customs.
[FR Doc. 98-30570 Filed 11-13-98; 8:45 am]
BILLING CODE 4820-02-P