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.

2004

First quarter
Overpayments
3%


Underpayments
 5%

Second quarter
Overpayments
4%


Underpayments
6%

2003

First quarter 6%

Second quarter 6%

Third quarter
Overpayments
 4%


Underpayments
 6%

Fourth quarter
Overpayments
3%


Underpayments
 5%

2002 (entire year)

7%

2001

First quarter 10%

Second quarter 9%

Third quarter 8%

Fourth quarter 8%

2000

First quarter 9%

Second quarter 10%

Third quarter 10%

Fourth quarter 10%

1999

First quarter 8%

Second quarter 9%

Third quarter 9%

Fourth quarter 9%

1998

First quarter 10%

Second quarter 9%

Third quarter 9%

Fourth quarter 9%

1997 (entire year)

10%

1996

First quarter 10%

Second quarter 9%

Third quarter 10%

Fourth quarter 10%

1995

First quarter 10%

Second quarter 11%

Third quarter 10%

Fourth quarter 10%

1994

First quarter 8%

Second quarter 8%

Third quarter 9%

Fourth quarter 10%

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

AL:LEM:ecl

March 26, 2004

TIR 04-8