Fed Tax--IRS: "IRS ANNOUNCES QUARTERLY INTEREST RATES"
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>>>9/07/00
-2000-63
IRS ANNOUNCES QUARTERLY INTEREST RATES
WASHINGTON — The Internal Revenue Service today announced that interest
rates for the calendar quarter beginning October 1, 2000, will remain at nine (9) percent
for overpayments (eight (8) percent in the case of a corporation), nine (9) percent for
underpayments, and eleven (11) percent for large corporate underpayments. The
overpayment rate for the portion of a corporate overpayment exceeding $10,000 will
remain at six and one-half (6.5) percent.
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 July 2000.
Revenue Ruling 2000-42, announcing the new rates of interest, is attached and
will appear in Internal Revenue Bulletin 2000-39, dated September 25, 2000.
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