[Federal Register Volume 64, Number 30 (Tuesday, February 16, 1999)]
[Notices]
[Pages 7692-7693]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-3618]


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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 (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 January 1, 
1999, the interest rates for overpayments will be 6 percent for 
corporations and 7 percent for non-corporations, and the interest rate 
for underpayments will be 7 percent. This notice is published for the 
convenience of the importing public and Customs personnel.

EFFECTIVE DATE: January 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 98-61 (see, 1998-51 IRB, dated December 21, 
1998), the IRS determined the rates of interest for the second quarter 
of fiscal year (FY) 1999 (the period of January 1-March 31, 1999). The 
interest rate paid to the Treasury for underpayments will be the short-
term Federal rate (4%) plus three percentage points (3%) for a total of 
seven percent (7%). For corporate overpayments, the rate is the Federal 
short-term rate (4%) plus two percentage points (2%) for a total of six 
percent (6%). For overpayments made by non-corporations, the rate is 
the Federal short-term rate (4%) plus three percentage points (3%) for 
a total of seven percent (7%). These interest rates are subject to 
change for the third quarter of FY-1999 (the period of April 1-June 30, 
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.

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                                                                                                      Corporate
                                                                              Under         Over       overpay-
                       Beginning date                         Ending date    payments     payments   ments (Eff.
                                                                            (percent)    (percent)     1-1-99)
                                                                                                      (percent)
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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  ...........
    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  ...........

[[Page 7693]]

 
    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  ...........
    010199..................................................       033199            7            7            6
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    Dated: February 10, 1999.
Raymond W. Kelly,
Commissioner of Customs.
[FR Doc. 99-3618 Filed 2-12-99; 8:45 am]
BILLING CODE 4820-02-P