IRS Revenue Ruling
2002-16

 Code Sec. 6621

<<FULL TEXT>>

26 CFR 301.6621-1: Interest rate.

Interest rates; underpayements and overpayments. The rate of interest
determined under section 6621 of the Code for the calendar quarter
beginning April 1, 2000, will be 9 percent for overpayments (8 percent in
the case of a corporation), 9 percent for underpayments, and 11 percent
for large corporate underpayments. The rate of interest paid on the
portion of a corporate overpayment exceeding $10,000 is 6.5 percent.


REV. RUL. 2000-16

Section 6621 of the Internal Revenue Code establishes the rates for
interest on tax overpayments and tax underpayments. Under section
6621(a)(1), the overpayment rate beginning April 1, 2000, is the sum of
the federal short-term rate plus 3 percentage points (2 percentage points
in the case of a corporation), except the rate for the portion of a
corporate overpayment of tax exceeding $10,000 for a taxable period is the
sum of the federal short-term rate plus 0.5 of a percentage point for
interest computations made after December 31, 1994. Under section
6621(a)(2), the underpayment rate is the sum of the federal short-term
rate plus 3 percentage points.

Section 6621(c) provides that for purposes of interest payable under
section 6601 on any large corporate underpayment, the underpayment rate
under section 6621(a)(2) is determined by substituting "5 percentage
points" for "3 percentage points." See section 6621(c) and section
301.6621-3 of the Regulations on Procedure and Administration for the
definition of a large corporate underpayment and for the rules for
determining the applicable date. Section 6621(c) and section 301.6621-3
are generally effective for periods after December 31, 1990.

Section 6621(b)(1) provides that the Secretary will determine the
federal short-term rate for the first month in each calendar quarter.

Section 6621(b)(2)(A) provides that the federal short-term rate
determined under section 6621(b)(1) for any month applies during the first
calendar quarter beginning after such month.

Section 6621(b)(2)(B) provides that in determining the addition to tax
under section 6654 for failure to pay estimated tax for any taxable year,
the federal short-term rate that applies during the third month following
such taxable year also applies during the first 15 days of the fourth
month following such taxable year.

Section 6621(b)(3) provides that the federal short-term rate for any
month is the federal short-term rate determined during such month by the
Secretary in accordance with section 1274(d), rounded to the nearest full
percent (or, if a multiple of 1/2 of 1 percent, the rate is increased to
the next highest full percent).

Notice 88-59, 1988-1 C.B. 546, announced that, in determining the
quarterly interest rates to be used for overpayments and underpayments of
tax under section 6621, the Internal Revenue Service will use the federal
short-term rate based on daily compounding because that rate is most
consistent with section 6621 which, pursuant to section 6622, is subject
to daily compounding.

Rounded to the nearest full percent, the federal short-term rate based
on daily compounding determined during the month of January 2000 is 6
percent. Accordingly, an overpayment rate of 9 percent (8 percent in the
case of a corporation) and an underpayment rate of 9 percent are
established for the calendar quarter beginning April 1, 2000. The
overpayment rate for the portion of a corporate overpayment exceeding
$10,000 for the calendar quarter beginning April 1, 2000, is 6.5 percent.
The underpayment rate for large corporate underpayments for the calendar
quarter beginning April 1, 2000, is 11 percent. These rates apply to
amounts bearing interest during that calendar quarter.

Under section 6621(b)(2)(B), the 8 percent rate that applies to
estimated tax underpayments for the first calendar quarter in 2000, as
provided in Rev. Rul. 99-53, 1999-50 I.R.B. 657, also applies to such
underpayments for the first 15 days in April 2000.

Interest factors for daily compound interest for annual rates of 6.5
percent, 8 percent, 9 percent, and 11 percent are published in Tables 66,
69, 71, and 75 of Rev. Proc. 95-17, 1995-1 C.B. 556, 620, 623, 625, and
629.

Annual interest rates to be compounded daily pursuant to section 6622
that apply for prior periods are set forth in the tables accompanying this
revenue ruling.


DRAFTING INFORMATION

The principal author of this revenue ruling is Raymond Bailey of the
Office of Assistant Chief Counsel (Income Tax and Accounting). For further
information regarding this revenue ruling, contact Mr. Bailey on (202)
622-6226 (not a toll-free call).


TABLE OF INTEREST RATES

PERIODS BEFORE JUL. 1, 1975 -- PERIODS ENDING DEC. 31, 1986

OVERPAYMENTS AND UNDERPAYMENTS

IN 1995-1 C.B.
PERIOD RATE DAILY RATE TABLE
------ ---- ----------------
Before Jul. 1, 1975 6% Table 2, pg. 557
Jul. 1, 1975--Jan. 31, 1976 9% Table 4, pg. 559
Feb. 1, 1976--Jan. 31, 1978 7% Table 3, pg. 558
Feb. 1, 1978--Jan. 31, 1980 6% Table 2, pg. 557
Feb. 1, 1980--Jan. 31, 1982 12% Table 5, pg. 560
Feb. 1, 1982--Dec. 31, 1982 20% Table 6, pg. 560
Jan. 1, 1983--Jun. 30, 1983 16% Table 37, pg. 591
Jul. 1, 1983--Dec. 31, 1983 11% Table 27, pg. 581
Jan. 1, 1984--Jun. 30, 1984 11% Table 75, pg. 629
Jul. 1, 1984--Dec. 31, 1984 11% Table 75, pg. 629
Jan. 1, 1985--Jun. 30, 1985 13% Table 31, pg. 585
Jul. 1, 1985--Dec. 31, 1985 11% Table 27, pg. 581
Jan. 1, 1986--Jun. 30, 1986 10% Table 25, pg. 579
Jul. 1, 1986--Dec. 31, 1986 9% Table 23, pg. 577


TABLE OF INTEREST RATES

FROM JAN. 1, 1987 -- Dec. 31, 1998

OVERPAYMENTS UNDERPAYMENTS
----------------- -----------------
TABLE TABLE
1995-1 1995-1
RATE C.B. PG RATE C.B. PG
---- ------ -- ---- ------ --
Jan. 1, 1987--Mar. 31, 1987 8% 21 575 9% 23 577
Apr. 1, 1987--Jun. 30, 1987 8% 21 575 9% 23 577
Jul. 1, 1987--Sep. 30, 1987 8% 21 575 9% 23 577
Oct. 1, 1987--Dec. 31, 1987 9% 23 577 10% 25 579
Jan. 1, 1988--Mar. 31, 1988 10% 73 627 11% 75 629
Apr. 1, 1988--Jun. 30, 1988 9% 71 625 10% 73 627
Jul. 1, 1988--Sep. 30, 1988 9% 71 625 10% 73 627
Oct. 1, 1988--Dec. 31, 1988 10% 73 627 11% 75 629
Jan. 1, 1989--Mar. 31, 1989 10% 25 579 11% 27 581
Apr. 1, 1989--Jun. 30, 1989 11% 27 581 12% 29 583
Jul. 1, 1989--Sep. 30, 1989 11% 27 581 12% 29 583
Oct. 1, 1989--Dec. 31, 1989 10% 25 579 11% 27 581
Jan. 1, 1990--Mar. 31, 1990 10% 25 579 11% 27 581
Apr. 1, 1990--Jun. 30, 1990 10% 25 579 11% 27 581
Jul. 1, 1990--Sep. 30, 1990 10% 25 579 11% 27 581
Oct. 1, 1990--Dec. 31, 1990 10% 25 579 11% 27 581
Jan. 1, 1991--Mar. 31, 1991 10% 25 579 11% 27 581
Apr. 1, 1991--Jun. 30, 1991 9% 23 577 10% 25 579
Jul. 1, 1991--Sep. 30, 1991 9% 23 577 10% 25 579
Oct. 1, 1991--Dec. 31, 1991 9% 23 577 10% 25 579
Jan. 1, 1992--Mar. 31, 1992 8% 69 623 9% 71 625
Apr. 1, 1992--Jun. 30, 1992 7% 67 621 8% 69 623
Jul. 1, 1992--Sep. 30, 1992 7% 67 621 8% 69 623
Oct. 1, 1992--Dec. 31, 1992 6% 65 619 7% 67 621
Jan. 1, 1993--Mar. 31, 1993 6% 17 571 7% 19 573
Apr. 1, 1993--Jun. 30, 1993 6% 17 571 7% 19 573
Jul. 1, 1993--Sep. 30, 1993 6% 17 571 7% 19 573
Oct. 1, 1993--Dec. 31, 1993 6% 17 571 7% 19 573
Jan. 1, 1994--Mar. 31, 1994 6% 17 571 7% 19 573
Apr. 1, 1994--Jun. 30, 1994 6% 17 571 7% 19 573
Jul. 1, 1994--Sep. 30, 1994 7% 19 573 8% 21 575
Oct. 1, 1994--Dec. 31, 1994 8% 21 575 9% 23 577
Jan. 1, 1995--Mar. 31, 1995 8% 21 575 9% 23 577
Apr. 1, 1995--Jun. 30, 1995 9% 23 577 10% 25 579
Jul. 1, 1995--Sep. 30, 1995 8% 21 575 9% 23 577
Oct. 1, 1995--Dec. 31, 1995 8% 21 575 9% 23 577
Jan. 1, 1996--Mar. 31, 1996 8% 69 623 9% 71 625
Apr. 1, 1996--Jun. 30, 1996 7% 67 621 8% 69 623
Jul. 1, 1996--Sep. 30, 1996 8% 69 623 9% 71 625
Oct. 1, 1996--Dec. 31, 1996 8% 69 623 9% 71 625
Jan. 1, 1997--Mar. 31, 1997 8% 21 575 9% 23 577
Apr. 1, 1997--Jun. 30, 1997 8% 21 575 9% 23 577
Jul. 1, 1997--Sep. 30, 1997 8% 21 575 9% 23 577
Oct. 1, 1997--Dec. 31, 1997 8% 21 575 9% 23 577
Jan. 1, 1998--Mar. 31, 1998 8% 21 575 9% 23 577
Apr. 1, 1998--Jun. 30, 1998 7% 19 573 8% 21 575
Jul. 1, 1998--Sep. 30, 1998 7% 19 573 8% 21 575
Oct. 1, 1998--Dec. 31, 1998 7% 19 573 8% 21 575


TABLE INTEREST RATES

FROM JANUARY 1, 1999 -- PRESENT

NONCORPORATE OVERPAYMENTS AND UNDERPAYMENTS

TABLE
1995-1
RATE C.B. PAGE
---- ------ ----
Jan. 1, 1999--Mar. 31, 1999 7% 19 573
Apr. 1, 1999--Jun. 30, 1999 8% 21 575
Jul. 1, 1999--Sep. 30, 1999 8% 21 575
Oct. 1, 1999--Dec. 31, 1999 8% 21 575
Jan. 1, 2000--Mar. 31, 2000 8% 69 623
Apr. 1, 2000--Jun. 30, 2000 9% 71 625


TABLE OF INTEREST RATES

FROM JANUARY 1, 1999 -- PRESENT

CORPORATE OVERPAYMENTS AND UNDERPAYMENTS

OVERPAYMENTS UNDERPAYMENTS
----------------- -----------------
TABLE TABLE
1995-1 1995-1
RATE C.B. PG RATE C.B. PG
---- ------ -- ---- ------ --
Jan. 1, 1999--Mar. 31, 1999 6% 17 571 7% 19 573
Apr. 1, 1999--Jun. 30, 1999 7% 19 573 8% 21 575
Jul. 1, 1999--Sep. 30, 1999 7% 19 573 8% 21 575
Oct. 1, 1999--Dec. 31, 1999 7% 19 573 8% 21 575
Jan. 1, 2000--Mar. 31, 2000 7% 67 621 8% 69 623
Apr. 1, 2000--Jun. 30, 2000 8% 69 623 9% 71 625


TABLE OF INTEREST RATES FOR LARGE CORPORATE UNDERPAYMENTS

FROM JANUARY 1, 1991 -- PRESENT

TABLE
1995-1
RATE C.B. PAGE
---- ------ ----
Jan. 1, 1991--Mar. 31, 1991 13% 31 85
Apr. 1, 1991--Jun. 30, 1991 12% 29 583
Jul. 1, 1991--Sep. 30, 1991 12% 29 583
Oct. 1, 1991--Dec. 31, 1991 12% 29 583
Jan. 1, 1992--Mar. 31, 1992 11% 75 629
Apr. 1, 1992--Jun. 30, 1992 10% 73 627
Jul. 1, 1992--Sep. 30, 1992 10% 73 627
Oct. 1, 1992--Dec. 31, 1992 9% 71 625
Jan. 1, 1993--Mar. 31, 1993 9% 23 577
Apr. 1, 1993--Jun. 30, 1993 9% 23 577
Jul. 1, 1993--Sep. 30, 1993 9% 23 577
Oct. 1, 1993--Dec. 31, 1993 9% 23 577
Jan. 1, 1994--Mar. 31, 1994 9% 23 577
Apr. 1, 1994--Jun. 30, 1994 9% 23 577
Jul. 1, 1994--Sep. 30, 1994 10% 25 579
Oct. 1, 1994--Dec. 31, 1994 11% 27 581
Jan. 1, 1995--Mar. 31, 1995 11% 27 581
Apr. 1, 1995--Jun. 30, 1995 12% 29 583
Jul. 1, 1995--Sep. 30, 1995 11% 27 581
Oct. 1, 1995--Dec. 31, 1995 11% 27 581
Jan. 1, 1996--Mar. 31, 1996 11% 75 629
Apr. 1, 1996--Jun. 30, 1996 10% 73 627
Jul. 1, 1996--Sep. 30, 1996 11% 75 629
Oct. 1, 1996--Dec. 31, 1996 11% 75 629
Jan. 1, 1997--Mar. 31, 1997 11% 27 581
Apr. 1, 1997--Jun. 30, 1997 11% 27 581
Jul. 1, 1997--Sep. 30, 1997 11% 27 581
Oct. 1, 1997--Dec. 31, 1997 11% 27 581
Jan. 1, 1998--Mar. 31, 1998 11% 27 581
Apr. 1, 1998--Jun. 30, 1998 10% 25 579
Jul. 1, 1998--Sep. 30, 1998 10% 25 579
Oct. 1, 1998--Dec. 31, 1998 10% 25 579
Jan. 1, 1999--Mar. 31, 1999 9% 23 577
Apr. 1, 1999--Jun. 30, 1999 10% 25 579
Jul. 1, 1999--Sep. 30, 1999 10% 25 579
Oct. 1, 1999--Dec. 31, 1999 10% 25 579
Jan. 1, 2000--Mar. 31, 2000 10% 73 627
Apr. 1, 2000--Jun. 30, 2000 11% 75 629


TABLE OF INTEREST RATES FOR CORPORATE OVERPAYMENTS EXCEEDING $10,000

FROM JANUARY 1, 1995 -- PRESENT

TABLE
1995-1
RATE C.B. PAGE
---- ------ ----
Jan. 1, 1995--Mar. 31, 1995 6.5% 18 572
Apr. 1, 1995--Jun. 30, 1995 7.5% 20 574
Jul. 1, 1995--Sep. 30, 1995 6.5% 18 572
Oct. 1, 1995--Dec. 31, 1995 6.5% 18 572
Jan. 1, 1996--Mar. 31, 1996 6.5% 66 620
Apr. 1, 1996--Jun. 30, 1996 5.5% 64 618
Jul. 1, 1996--Sep. 30, 1996 6.5% 66 620
Oct. 1, 1996--Dec. 31, 1996 6.5% 66 620
Jan. 1, 1997--Mar. 31, 1997 6.5% 18 572
Apr. 1, 1997--Jun. 30, 1997 6.5% 18 572
Jul. 1, 1997--Sep. 30, 1997 6.5% 18 572
Oct. 1, 1997--Dec. 31, 1997 6.5% 18 572
Jan. 1, 1998--Mar. 31, 1998 6.5% 18 572
Apr. 1, 1998--Jun. 30, 1998 5.5% 16 570
Jul. 1. 1998--Sep. 30, 1998 5.5% 16 570
Oct. 1, 1998--Dec. 31, 1998 5.5% 16 570
Jan. 1, 1999--Mar. 31, 1999 4.5% 14 568
Apr. 1, 1999--Jun. 30, 1999 5.5% 16 570
Jul. 1, 1999--Sep. 30, 1999 5.5% 16 570
Oct. 1, 1999--Dec. 31, 1999 5.5% 16 570
Jan. 1, 2000--Mar. 31, 2000 5.5% 64 618
Apr. 1, 2000--Jun. 30, 2000 6.5% 66 620

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