[Federal Register Volume 64, Number 139 (Wednesday, July 21, 1999)]
[Notices]
[Pages 39190-39191]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-18559]


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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 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.

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                                                                                                     Corporate
                                                                  Under-payments   Over-payments   Overpayments
                 Beginning date                     Ending date      (percent)       (percent)     (Eff. 1-1-99)
                                                                                                     (pecent)
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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               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
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    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