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Technical Information Release

Technical Information Release TIR 06-15: Interest Rate on Overpayments and Underpayments

Date: 09/13/2006
Organization: Massachusetts Department of Revenue
Referenced Sources: Massachusetts General Laws

Tax Administration

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.
 

2006

First 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%

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%

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:MTF:sg

September 13, 2006

TIR 06-15

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