[Federal Register: July 21, 1999 (Volume 64, Number 139)] [Notices] [Page 39190-39191] From the Federal Register Online via GPO Access [wais.access.gpo.gov] [DOCID:fr21jy99-136] ----------------------------------------------------------------------- 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 (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. ---------------------------------------------------------------------------------------------------------------- Corporate Under-payments Over-payments Overpayments Beginning date Ending date (percent) (percent) (Eff. 1-1-99) (pecent) ---------------------------------------------------------------------------------------------------------------- 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 ---------------------------------------------------------------------------------------------------------------- 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