Part III. Administrative, Procedural, and Miscellaneous

Weighted Average Interest Rate Update

Notice 99–54

Notice 88–73 provides guidelines for determining the weighted average interest rate and the resulting permissible range of

interest rates used to calculate current liability for the purpose of the full funding limitation of § 412(c)(7) of the Internal Revenue Code as amended by the Omnibus Budget Reconciliation Act of 1987 and as further amended by the Uruguay Round Agreements Act, Pub. L. 103-465 (GATT).

The average yield on the 30-year Treasury Constant Maturities for October 1999 is 6.26 percent. The following rates were determined for the plan years beginning in the month shown below.

90% to 105% 90% to 110% Weighted Permissible Permissible Month Year Average Range Range

November 1999 5.99 5.39 to 6.29 5.39 to 6.59

(2) taxpayers need not take any action by December 31, 1999, if at least one of the applicable periods of limitation (as described in sections 4.02(1) and 4.02(2) of this revenue procedure) will be open after December 31, 1999; such taxpayers must file a claim requesting application of the net rate of zero on or before the date on which the last applicable period of limitation closes (section 4.03(2)).

.03 Modification to Rev. Proc. 99–19 regarding application procedures. Claims requesting the application of the net rate of zero:

(1) should be sent to a specific address (section 5.02);

(2) should be specifically labeled (section 5.03); and

(3) should generally be made using a computation that reduces underpayment interest, except as otherwise expressly provided (section 5.04(5)(f)).