Section 6621 of the Internal Revenue Code establishes the interest rates on
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1 Part 1 Section Determination of Rate of Interest 26 CFR : Interest rate. Rev. Rul Section 6621 of the Internal Revenue Code establishes the interest rates on overpayments and underpayments of tax. Under section 6621(a)(1), the overpayment rate 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. 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 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 are generally effective for periods after December 31, Section 6621(b)(1) provides that the Secretary will determine the federal shortterm 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
2 2 applies during the first calendar quarter beginning after that 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 the taxable year also applies during the first 15 days of the 4th month following the taxable year. Section 6621(b)(3) provides that the federal short-term rate for any month is the federal short-term rate determined during that 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, 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. The federal short-term rate determined in accordance with section 1274(d) during October 2014 is the rate published in Revenue Ruling , IRB 756 to take effect beginning November 1, The federal short-term rate, rounded to the nearest full percent, based on daily compounding determined during the month of October 2014 is 0 percent. Accordingly, an overpayment rate of 3 percent (2 percent in the case of a corporation) and an underpayment rate of 3 percent are established for the calendar quarter beginning January 1, The overpayment rate for the portion of a corporate overpayment exceeding $10,000 for the calendar quarter beginning January 1, 2015 is 0.5 percent. The underpayment rate for large corporate underpayments for the calendar quarter beginning January 1, 2015, is 5 percent. These rates apply to amounts bearing interest during that calendar quarter. The 3 percent rate also applies to estimated tax underpayments for the first calendar quarter in 2015.
3 3 Interest factors for daily compound interest for annual rates of 0.5 percent are published in Appendix A of this Revenue Ruling. Interest factors for daily compound interest for annual rates of 2 percent, 3 percent and 5 percent are published in Tables 9, 11, and 15 of Rev. Proc , C.B. 563, 565, and 569. 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 Deborah Colbert-James of the Office of Associate Chief Counsel (Procedure & Administration). For further information regarding this revenue ruling, contact Ms. Colbert-James at (202) (not a tollfree call).
4 4 APPENDIX A 365 Day Year 0.5% Compound Rate 184 Days Days Factor Days Factor Days Factor
5
6 6 366 Day Year 0.5% Compound Rate 184 Days Days Factor Days Factor Days Factor
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8 8 TABLE OF INTEREST RATES PERIODS BEFORE JUL. 1, PERIODS ENDING DEC. 31, 1986 OVERPAYMENTS AND UNDERPAYMENTS In C.B. PERIOD RATE DAILY RATE TABLE Before Jul. 1, % Table 2, pg. 557 Jul. 1, Jan. 31, % Table 4, pg. 559 Feb. 1, Jan. 31, % Table 3, pg. 558 Feb. 1, Jan. 31, % Table 2, pg. 557 Feb. 1, Jan. 31, % Table 5, pg. 560 Feb. 1, Dec. 31, % Table 6, pg. 560 Jan. 1, Jun. 30, % Table 37, pg. 591 Jul. 1, Dec. 31, % Table 27, pg. 581 Jan. 1, Jun. 30, % Table 75, pg. 629 Jul. 1, Dec. 31, % Table 75, pg. 629 Jan. 1, Jun. 30, % Table 31, pg. 585 Jul. 1, Dec. 31, % Table 27, pg. 581 Jan. 1, Jun. 30, % Table 25, pg. 579 Jul. 1, Dec. 31, % Table 23, pg. 577 TABLE OF INTEREST RATES FROM JAN. 1, Dec. 31, 1998 OVERPAYMENTS UNDERPAYMENTS C.B C.B. RATE TABLE PG RATE TABLE PG Jan. 1, Mar. 31, % % Apr. 1, Jun. 30, % % Jul. 1, Sep. 30, % % Oct. 1, Dec. 31, % % Jan. 1, Mar. 31, % % Apr. 1, Jun. 30, % % Jul. 1, Sep. 30, % % Oct. 1, Dec. 31, % % Jan. 1, Mar. 31, % % Apr. 1, Jun. 30, % % Jul. 1, Sep. 30, % % Oct. 1, Dec. 31, % %
9 Jan. 1, Mar. 31, % % Apr. 1, Jun. 30, % % Jul. 1, Sep. 30, % % Oct. 1, Dec. 31, % % Jan. 1, Mar. 31, % % Apr. 1, Jun. 30, % % Jul. 1, Sep. 30, % % Oct. 1, Dec. 31, % % Jan. 1, Mar. 31, % % Apr. 1, Jun. 30, % % Jul. 1, Sep. 30, % % Oct. 1, Dec. 31, % % Jan. 1, Mar. 31, % % Apr. 1, Jun. 30, % % Jul. 1, Sep. 30, % % Oct. 1, Dec. 31, % % Jan. 1, Mar. 31, % % Apr. 1, Jun. 30, % % Jul. 1, Sep. 30, % % Oct. 1, Dec. 31, % % Jan. 1, Mar. 31, % % Apr. 1, Jun. 30, % % Jul. 1, Sep. 30, % % Oct. 1, Dec. 31, % % Jan. 1, Mar. 31, % % Apr. 1, Jun. 30, % % Jul. 1, Sep. 30, % % Oct. 1, Dec. 31, % % Jan. 1, Mar. 31, % % Apr. 1, Jun. 30, % % Jul. 1, Sep. 30, % % Oct. 1, Dec. 31, % % Jan. 1, Mar. 31, % % Apr. 1, Jun. 30, % % Jul. 1, Sep. 30, % % Oct. 1, Dec. 31, % %
10 10 TABLE OF INTEREST RATES FROM JANUARY 1, PRESENT NONCORPORATE OVERPAYMENTS AND UNDERPAYMENTS C.B. RATE TABLE PAGE Jan. 1, Mar. 31, % Apr. 1, Jun. 30, % Jul. 1, Sep. 30, % Oct. 1, Dec. 31, % Jan. 1, Mar. 31, % Apr. 1, Jun. 30, % Jul. 1, Sep. 30, % Oct. 1, Dec. 31, % Jan. 1, Mar. 31, % Apr. 1, Jun. 30, % Jul. 1, Sep. 30, % Oct. 1, Dec. 31, % Jan. 1, Mar. 31, % Apr. 1, Jun. 30, % Jul. 1, Sep. 30, % Oct. 1, Dec. 31, % Jan. 1, Mar. 31, % Apr. 1, Jun. 30, % Jul. 1, Sep. 30, % Oct. 1, Dec. 31, % Jan. 1, Mar. 31, % Apr. 1, Jun. 30, % Jul. 1, Sep. 30, % Oct. 1, Dec. 31, % Jan. 1, Mar. 31, % Apr. 1, Jun. 30, % Jul. 1, Sep. 30, % Oct. 1, Dec. 31, % Jan. 1, Mar. 31, % Apr. 1, Jun. 30, % Jul. 1, Sep. 30, % Oct. 1, Dec. 31, % Jan. 1, Mar. 31, % Apr. 1, Jun. 30, % Jul. 1, Sep. 30, % Oct. 1, Dec. 31, % Jan. 1, Mar. 31, % Apr. 1, Jun. 30, % Jul. 1, Sep. 30, %
11 Oct. 1, Dec. 31, % Jan. 1, Mar. 31, % Apr. 1, Jun. 30, % Jul. 1, Sep. 30, % Oct. 1, Dec. 31, % Jan. 1, Mar. 31, % Apr. 1, Jun. 30, % Jul. 1, Sep. 30, % Oct. 1, Dec. 31, % Jan. 1, Mar. 31, % Apr. 1, Jun. 30, % Jul. 1, Sep. 30, % Oct. 1, Dec. 31, % Jan. 1, Mar. 31, % Apr. 1, Jun. 30, % Jul. 1, Sep. 30, % Oct. 1, Dec. 31, % Jan. 1, Mar. 31, % Apr. 1, Jun. 30, % Jul. 1, Sep. 30, % Oct. 1, Dec. 31, % Jan. 1, Mar. 31, % Apr. 1, Jun. 30, % Jul. 1, Sep. 30, % Oct. 1, Dec. 31, % Jan. 1, Mar. 31, %
12 12 TABLE OF INTEREST RATES FROM JANUARY 1, PRESENT CORPORATE OVERPAYMENTS AND UNDERPAYMENTS OVERPAYMENTS UNDERPAYMENTS C.B C.B. RATE TABLE PG RATE TABLE PG Jan. 1, Mar. 31, % % Apr. 1, Jun. 30, % % Jul. 1, Sep. 30, % % Oct. 1, Dec. 31, % % Jan. 1, Mar. 31, % % Apr. 1, Jun. 30, % % Jul. 1, Sep. 30, % % Oct. 1, Dec. 31, % % Jan. 1, Mar. 31, % % Apr. 1, Jun. 30, % % Jul. 1, Sep. 30, % % Oct. 1, Dec. 31, % % Jan. 1, Mar. 31, % % Apr. 1, Jun. 30, % % Jul. 1, Sep. 30, % % Oct. 1, Dec. 31, % % Jan. 1, Mar. 31, % % Apr. 1, Jun. 30, % % Jul. 1, Sep. 30, % % Oct. 1, Dec. 31, % % Jan. 1, Mar. 31, % % Apr. 1, Jun. 30, % % Jul. 1, Sep. 30, % % Oct. 1, Dec. 31, % % Jan. 1, Mar. 31, % % Apr. 1, Jun. 30, % % Jul. 1, Sep. 30, % % Oct. 1, Dec. 31, % % Jan. 1, Mar. 31, % % Apr. 1, Jun. 30, % % Jul. 1, Sep. 30, % % Oct. 1, Dec. 31, % % Jan. 1, Mar. 31, % % Apr. 1, Jun. 30, % %
13 Jul. 1, Sep. 30, % % Oct. 1, Dec. 31, % % Jan. 1, Mar. 31, % % Apr. 1, Jun. 30, % % Jul. 1, Sep. 30, % % Oct. 1, Dec. 31, % % Jan. 1, Mar. 31, % % Apr. 1, Jun. 30, % % Jul. 1, Sep. 30, % % Oct. 1, Dec. 31, % % Jan. 1, Mar. 31, % % Apr. 1, Jun. 30, % % Jul. 1, Sep. 30, % % Oct. 1, Dec. 31, % % Jan. 1, Mar. 31, % % Apr. 1, Jun. 30, % % Jul. 1, Sep. 30, % % Oct. 1, Dec. 31, % % Jan. 1, Mar. 31, % % Apr. 1, Jun. 30, % % Jul. 1, Sep. 30, % % Oct. 1, Dec. 31, % % Jan. 1, Mar. 31, % % Apr. 1, Jun. 30, % % Jul. 1, Sep. 30, % % Oct. 1, Dec. 31, % % Jan. 1, Mar. 31, % % Apr. 1, Jun. 30, % % Jul. 1, Sep. 30, % % Oct. 1, Dec. 31, % % Jan. 1, Mar. 31, % %
14 14 TABLE OF INTEREST RATES FOR LARGE CORPORATE UNDERPAYMENTS FROM JANUARY 1, PRESENT C.B. RATE TABLE PG Jan. 1, Mar. 31, % Apr. 1, Jun. 30, % Jul. 1, Sep. 30, % Oct. 1, Dec. 31, % Jan. 1, Mar. 31, % Apr. 1, Jun. 30, % Jul. 1, Sep. 30, % Oct. 1, Dec. 31, % Jan. 1, Mar. 31, % Apr. 1, Jun. 30, % Jul. 1, Sep. 30, % Oct. 1, Dec. 31, % Jan. 1, Mar. 31, % Apr. 1, Jun. 30, % Jul. 1, Sep. 30, % Oct. 1, Dec. 31, % Jan. 1, Mar. 31, % Apr. 1, Jun. 30, % Jul. 1, Sep. 30, % Oct. 1, Dec. 31, % Jan. 1, Mar. 31, % Apr. 1, Jun. 30, % Jul. 1, Sep. 30, % Oct. 1, Dec. 31, % Jan. 1, Mar. 31, % Apr. 1, Jun. 30, % Jul. 1, Sep. 30, % Oct. 1, Dec. 31, % Jan. 1, Mar. 31, % Apr. 1, Jun. 30, % Jul. 1, Sep. 30, % Oct. 1, Dec. 31, % Jan. 1, Mar. 31, % Apr. 1, Jun. 30, % Jul. 1, Sep. 30, % Oct. 1, Dec. 31, % Jan. 1, Mar. 31, % Apr. 1, Jun. 30, %
15 15 Jul. 1, Sep. 30, % Oct. 1, Dec. 31, % Jan. 1, Mar. 31, % Apr. 1, Jun. 30, % Jul. 1, Sep. 30, % Oct. 1, Dec. 31, % Jan. 1, Mar. 31, % Apr. 1, Jun. 30, % Jul. 1, Sep. 30, % Oct. 1, Dec. 31, % Jan. 1, Mar. 31, % Apr. 1, Jun. 30, % Jul. 1, Sep. 30, % Oct. 1, Dec. 31, % Jan. 1, Mar. 31, % Apr. 1, Jun. 30, % Jul. 1, Sep. 30, % Oct. 1, Dec. 31, % Jan. 1, Mar. 31, % Apr. 1, Jun. 30, % Jul. 1, Sep. 30, % Oct. 1, Dec. 31, % Jan. 1, Mar. 31, % Apr. 1, Jun. 30, % Jul. 1, Sep. 30, % Oct. 1, Dec. 31, % Jan. 1, Mar. 31, % Apr. 1, Jun. 30, % Jul. 1, Sep. 30, % Oct. 1, Dec. 31, % Jan. 1, Mar. 31, % Apr. 1, Jun. 30, % Jul. 1, Sep. 30, % Oct. 1, Dec. 31, % Jan. 1, Mar. 31, % Apr. 1, Jun. 30, % Jul. 1, Sep. 30, % Oct. 1, Dec. 31, % Jan. 1, Mar. 31, % Apr. 1, Jun. 30, % Jul. 1, Sep. 30, % Oct. 1, Dec. 31, % Jan. 1, Mar. 31, % Apr. 1, Jun. 30, % Jul. 1, Sep. 30, % Oct. 1, Dec. 31, % Jan. 1, Mar. 31, %
16 16 Apr. 1, Jun. 30, % Jul. 1, Sep. 30, % Oct. 1, Dec. 31, % Jan. 1, Mar. 31, % Apr. 1, Jun. 30, % Jul. 1, Sep. 30, % Oct. 1, Dec. 31, % Jan. 1, Mar. 31, % Apr. 1, Jun. 30, % Jul. 1, Sep. 30, % Oct. 1, Dec. 31, % Jan. 1, Mar. 31, %
17 17 TABLE OF INTEREST RATES FOR CORPORATE OVERPAYMENTS EXCEEDING $10,000 FROM JANUARY 1, 1995 PRESENT C.B. RATE TABLE PG Jan. 1, Mar. 31, % Apr. 1, Jun. 30, % Jul. 1, Sep. 30, % Oct. 1, Dec. 31, % Jan. 1, Mar. 31, % Apr. 1, Jun. 30, % Jul. 1, Sep. 30, % Oct. 1, Dec. 31, % Jan. 1, Mar. 31, % Apr. 1, Jun. 30, % Jul. 1, Sep. 30, % Oct. 1, Dec. 31, % Jan. 1, Mar. 31, % Apr. 1, Jun. 30, % Jul Sep. 30, % Oct. 1, Dec. 31, % Jan. 1, Mar. 31, % Apr. 1, Jun. 30, % Jul. 1, Sep. 30, % Oct. 1, Dec. 31, % Jan. 1, Mar. 31, % Apr. 1, Jun. 30, % Jul. 1, Sep. 30, % Oct. 1, Dec. 31, % Jan. 1, Mar. 31, % Apr. 1, Jun. 30, % Jul. 1, Sep. 30, % Oct. 1, Dec. 31, % Jan. 1, Mar. 31, % Apr. 1, Jun. 30, % Jul. 1, Sep. 30, % Oct. 1, Dec. 31, % Jan. 1, Mar. 31, % Apr. 1, Jun. 30, % Jul. 1, Sep. 30, % Oct. 1, Dec. 31, % Jan. 1, Mar. 31, % Apr. 1, Jun. 30, % Jul. 1, Sep. 30, %
18 18 Oct. 1, Dec. 31, % Jan. 1, Mar. 31, % Apr. 1, Jun. 30, % Jul. 1, Sep. 30, % Oct. 1, Dec. 31, % Jan. 1, Mar. 31, % Apr. 1, Jun. 30, % Jul. 1, Sep. 30, % Oct. 1, Dec. 31, % Jan. 1, Mar. 31, % Apr. 1, Jun. 30, % Jul. 1, Sep. 30, % Oct. 1, Dec. 31, % Jan. 1, Mar. 31, % Apr. 1, Jun. 30, % Jul. 1, Sep. 30, % Oct. 1, Dec. 31, % Jan. 1, Mar. 31, % Apr. 1, Jun. 30, % Jul. 1, Sep. 30, % Oct. 1, Dec. 31, % Jan. 1, Mar. 31, % Apr. 1, Jun. 30, % Jul. 1, Sep. 30, % Oct. 1, Dec. 31, % Jan. 1, Mar. 31, %* Apr. 1, Jun. 30, % Jul. 1, Sep. 30, % Oct. 1, Dec. 31, %* Jan. 1, Mar. 31, %* Apr. 1, Jun. 30, %* Jul. 1, Sep. 30, %* Oct. 1, Dec. 31, %* Jan. 1, Mar. 31, %* Apr. 1, Jun. 30, %* Jul. 1, Sep. 30, %* Oct. 1, Dec. 31, %* Jan. 1, Mar. 31, %* Apr. 1, Jun. 30, %* Jul. 1, Sep. 30, %* Oct. 1, Dec. 31, %* Jan. 1, Mar. 31, %* i * The asterisk reflects the interest factors for daily compound interest for annual rates of 0.5 percent are published in Appendix A of this Revenue Ruling.
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