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June 06, 2002
No Change in Interest Rates for
The Third Quarter of 2002
WASHINGTON - The Internal Revenue Service today announced that interest rates for the calendar quarter beginning July 1, 2002, will remain the same as the second quarter of 2002. The interest rates are as follows:
- six (6) percent for overpayments [five (5) percent in the case of a corporation];
- six (6) percent for underpayments;
- eight (8) percent for large corporate underpayments; and
- three and one-half (3.5) percent for the portion of a corporate overpayment exceeding $10,000.
Under the Internal Revenue Code, the rate of interest is determined on a quarterly basis. For taxpayers other than corporations, the overpayment and underpayment rate is the federal short-term rate plus 3 percentage points. Generally, in the case of a corporation, the underpayment rate is the federal short-term rate plus 3 percentage points and the overpayment rate is the federal short-term rate plus 2 percentage points. The rate for large corporate underpayments is the federal short-term rate plus 5 percentage points. The rate on the portion of a corporate overpayment of tax exceeding $10,000 for a taxable period is the federal short-term rate plus one-half (0.5) of a percentage point.
The interest rates announced today are computed from the federal short-term rate based on daily compounding determined during April 2002.
Rev. Rul. 2002-33, announcing the new rates of interest, is attached and will appear in Internal Revenue Bulletin No. 2002-25, dated June 25, 2002.
Part I
Section 6621.-- Determination of Interest Rate
26 CFR 301.6621-1: Interest rate.
Rev. Rul. 2002-33
Section 6621 of the Internal Revenue Code establishes the rates for interest on tax overpayments and tax underpayments. Under § 6621(a)(1), the overpayment rate beginning July 1, 2002, 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 § 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 § 6601 on any large corporate underpayment, the underpayment rate under § 6621(a)(2) is determined by substituting “5 percentage points” for “3 percentage points.” See § 6621(c) and § 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 § 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 § 6621(b)(1) for any month applies during the first calendar quarter beginning after such month.
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 § 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 § 6621, the Internal Revenue Service will use the federal short-term rate based on daily compounding because that rate is most consistent with § 6621 which, pursuant to § 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 April 2001 is 3 percent. Accordingly, an overpayment rate of 6 percent (5 percent in the case of a corporation) and an underpayment rate of 6 percent are established for the calendar quarter beginning July 1, 2002. The overpayment rate for the portion of a corporate overpayment exceeding $10,000 for the calendar quarter beginning July 1, 2002, is 3.5 percent. The underpayment rate for large corporate underpayments for the calendar quarter beginning July 1, 2002, is 8 percent. These rates apply to amounts bearing interest during that calendar quarter.
Interest factors for daily compound interest for annual rates of 3.5 percent, 5 percent, 6 percent, and 8 percent are published in Tables 12, 15, 17, and 21 of Rev. Proc. 95-17, 1995-1 C.B. 556, 566, 569, 571, and 575.
Annual interest rates to be compounded daily pursuant to § 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 Associate Chief Counsel (Procedure and Administration) Administrative Provisions and Judicial Practice Division. 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 & 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
------------ | -------------
1995-1 C.B. | 1995-1 C.B.
RATE TBL PG | RATE TBL 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 57 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 of Interest Rates from
January 1, 1999 � Present
Noncorporate Overpayments & Underpayments
1995-1 C.B.
RATE TBL PG
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
Jul. 1, 2000--Sep. 30, 2000 9% 71 625
Oct. 1, 2000--Dec 31, 2000 9% 71 625
Jan. 1, 2001--Mar. 31, 2001 9% 23 577
Apr. 1, 2001--Jun. 30, 2001 8% 21 575
Jul. 1, 2001--Sep. 30, 2001 7% 19 573
Oct. 1, 2001--Dec. 31, 2001 7% 19 573
Jan. 1, 2002--Mar. 31, 2002 6% 17 571
Apr. 1, 2002--Jun. 30, 2002 6% 17 571
Table of Interest Rates from
January 1, 1999 � Present
Corporate Overpayments & Underpayments
OVERPAYMENTS | UNDERPAYMENTS
------------ |--------------
1995-1 C.B. | 1995-1 C.B.
RATE TBL PG |RATE TBL 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
Jul. 1, 2000--Sep. 30, 2000 8% 69 623 9% 71 625
Oct. 1, 2000--Dec. 31, 2000 8% 69 623 9% 71 625
Jan. 1, 2001--Mar. 31, 2001 8% 21 575 9% 23 577
Apr. 1, 2001--Jun. 30, 2001 7% 19 573 8% 21 575
Jul. 1, 2001--Sep. 30, 2001 6% 17 571 7% 19 573
Oct. 1, 2001--Dec. 31, 2001 6% 17 571 7% 19 573
Jan. 1, 2002--Mar. 31, 2002 5% 15 569 6% 17 571
Apr. 1, 2002--Jun. 30, 2002 5% 15 569 6% 17 571
Table of Interest Rates for
Large Corporate Underpayments from
January 1, 1991 � Present
1995-1 C.B.
RATE TBL PG
Jan. 1, 1991--Mar. 31, 1991 13% 31 585
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
Jul. 1, 2000--Sep. 30, 2000 11% 75 629
Oct. 1, 2000--Dec. 31, 2000 11% 75 629
Jan. 1, 2001--Mar. 31, 2001 11% 27 581
Apr. 1, 2001--Jun. 30, 2001 10% 25 579
Jul. 1, 2001--Sep. 30, 2001 9% 23 577
Oct. 1, 2001--Dec. 31, 2001 9% 23 577
Jan. 1, 2002--Mar. 31, 2002 8% 21 575
Apr. 1, 2002--Jun. 30, 2002 8% 21 575
Table of Interest Rates for Corporate
Overpayments Exceeding $10,000 from
January 1, 1995 � Present
1995-1 C.B.
RATE TABLE 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
Jul. 1, 2000--Sep. 30, 2000 6.5% 66 620
Oct. 1, 2000--Dec. 31, 2000 6.5% 66 620
Jan. 1, 2001--Mar. 31, 2001 6.5% 18 572
Apr. 1, 2001--Jun. 30, 2001 5.5% 16 570
Jul. 1, 2001--Sep. 30, 2001 4.5% 14 568
Oct. 1, 2001--Dec. 31, 2001 4.5% 14 568
Jan. 1, 2002--Mar. 31, 2002 3.5% 12 566
Apr. 1, 2002-Jun. 30, 2002 3.5% 12 566
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