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.

 

2012 (entire year)

Overpayments
2%

Underpayments
4%
2011First quarter
Overpayments
2%

Underpayments
4%
 Second quarter
Overpayments
3%

Underpayments
5%
 Third quarter
Overpayments
3%


Underpayments
5%

 Fourth quarter
Overpayments
2%

Underpayments
4%
2010 (entire year)

Overpayments
3%


Underpayments
5%
2009First quarter
Overpayments
4%

Underpayments
6%
 Second quarter
Overpayments
3%

Underpayments
5%
 Third quarter
Overpayments
3%

Underpayments
5%
 Fourth quarter
Overpayments
3%

Underpayments
5%
2008First quarter
Overpayments
6%

Underpayments
8%
 Second quarter
Overpayments
5%

Underpayments
7%
 Third quarter
Overpayments
4%

Underpayments
6%
 Fourth quarter
Overpayments
5%

Underpayments
7%
2007 (entire year)

Overpayments
7%


Underpayments
9%
2006First quarter
Overpayments
6%

Underpayments
8%
 Second quarter
Overpayments
6%

Underpayments
8%
 Third quarter
Overpayments
7%


Underpayments
9%

 

Fourth quarter
Overpayments
7%


Underpayments
9%


2005

First quarter
Overpayments
4%


Underpayments
6%
 

Second quarter
Overpayments
5%


Underpayments
7%
 

Third quarter
Overpayments
5%


Underpayments
7%
 Fourth quarter
Overpayments
6%

Underpayments
8%
2004

First quarter
Overpayments
3%


Underpayments
5%
 

Second quarter
Overpayments
4%


Underpayments
6%
 

Third quarter
Overpayments
3%


Underpayments
5%
 

Fourth quarter
Overpayments
4%


Underpayments
6%
2003First quarter 6%
 Second quarter 6%
 

Third quarter
Overpayments
4%


Underpayments
6%

 

Fourth quarter
Overpayments
3%


Underpayments
5%

2002 (entire year)7%

 

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/Amy Pitter
Amy Pitter
Commissioner of Revenue

AP:MTF:sg

September 6, 2012

TIR 12-6