[Federal Register: July 24, 1998 (Volume 63, Number 142)] [Notices] [Page 39932-39933] From the Federal Register Online via GPO Access [wais.access.gpo.gov] [DOCID:fr24jy98-188] ----------------------------------------------------------------------- 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, (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 98-32 (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