The Department of Revenue is issuing this Technical Information Release (TIR) to announce the quarterly interest rate on overpayments and underpayments determined by the Department of Revenue pursuant to G.L. c. 62C, §§ 32 and 40, as amended. The interest rate on overpayments and underpayments was the same for periods prior to July 1, 2003. An amendment to G.L. c. 62C, § 40, contained in the FY '04 Budget, St. 2003, c. 26, § 196, reduces the interest rate paid by the Department on overpayments. Effective July 1, 2003, the interest rate on overpayments is the Federal short-term rate determined under § 6621(b) of the Internal Revenue Code, as amended and in effect for the taxable year ("Federal short-term rate") plus two percentage points, simple interest. The rate for underpayments pursuant to G.L. c. 62C, § 32, remains at the Federal short-term rate plus four percentage points, compounded daily.

1993
(entire year)


8%


1994
First quarter
Second quarter
Third quarter
Fourth quarter



8%
8%
9%
10%


1995
First quarter
Second quarter
Third quarter
Fourth quarter



10%
11%
10%
10%


1996
First quarter
Second quarter
Third quarter
Fourth quarter



10%
9%
10%
10%


1997

(entire year)



10%


1998
First quarter
Second quarter
Third quarter
Fourth quarter



10%
9%
9%
9%


1999
First quarter
Second quarter
Third quarter
Fourth quarter



8%
9%
9%
9%


2000
First quarter
Second quarter
Third quarter
Fourth quarter



9%
10%
10%
10%


2001
First quarter
Second quarter
Third quarter
Fourth quarter



10%
9%
8%
8%


2002

(entire year)



7%


2003
First quarter
Second quarter
Third quarter
Overpayments
Underpayments
Fourth quarter
Overpayments
Underpayments



6%
6%

4%
6%

3%
5%

The above rates may change quarterly. See TIR 92-6 for an explanation of statutory changes in interest and penalties effective January 1, 1993 and 830 CMR 62C.33.1: Interest, Penalties, and Application of Payments.

/s/Alan LeBovidge
Alan LeBovidge
Commissioner of Revenue

September 22, 2003

TIR 03-22