IRS interest rates used in calculating interest on overdue accounts and refunds,

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Federal Register: October 16, 2003 (Volume 68, Number 200)NoticesPage 59630-59631From the Federal Register Online via GPO Access [wais.access.gpo.gov]

DOCID:fr16oc03-106

DEPARTMENT OF HOMELAND SECURITY

Customs and Border Protection

Quarterly IRS Interest Rates Used in Calculating Interest on Overdue Accounts and Refunds on Customs Duties

AGENCY: Customs and Border Protection, Department of Homeland Security.

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. For the calendar quarter beginning October 1, 2003, the interest rates for overpayments will be 3 percent for corporations and 4 percent for non-corporations, and the interest rate for underpayments will be 4 percent. This notice is published for the convenience of the importing public and Customs personnel.

EFFECTIVE DATE: October 1, 2003.

FOR FURTHER INFORMATION CONTACT: Ronald Wyman, Accounting Services Division, Accounts Receivable Group, 6026 Lakeside Boulevard, Indianapolis, Indiana 46278; telephone 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 must be in accordance with the Internal Revenue Code rate established under 26 U.S.C. 6621 and 6622. Section 6621 was 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 rates are based on the Federal short-term 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 2003-104 (see, 2003-39 IRB --, dated September 29, 2003), the IRS determined the rates of interest for the calendar quarter beginning October 1, 2003, and ending December 31, 2003. The interest rate paid to the Treasury for underpayments will be the Federal short-term rate (1%) plus three percentage points (3%) for a total of four percent (4%). For corporate overpayments, the rate is the Federal short-term rate (1%) plus two percentage points (2%) for a total of three percent (3%). For overpayments made by non-corporations, the rate is the Federal short-term rate (1%) plus three percentage points (3%) for a total of four percent (4%). These interest rates are subject to change for the calendar quarter beginning January 1, 2004, and ending March 31, 2004.

For the convenience of the importing public and Customs personnel the following list of IRS 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 Underpayments Overpayments overpayments Beginning date

Ending date (percent) (percent) (Eff. 1-1-99) (percent)

070174..........................................

063075

6

6 ..............

[Page 59631]

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 .............. 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 040199..........................................

033100

8

8

7 040100..........................................

033101

9

9

8 040101..........................................

063001

8

8

7 070101..........................................

123101

7

7

6 010102..........................................

123102

6

6

5 010103..........................................

093003

5

5

4 100103..........................................

123103

4

4

3

Dated: October 8, 2003. Robert C. Bonner, Commissioner, Customs and Border Protection.

FR Doc. 03-26109 Filed 10-15-03; 8:45 amBILLING CODE 4820-02-P

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