SECTION 5. PROCEDURES FOR

REQUESTING THE NET RATE OF ZERO

.01 Form to file. Except as provided in section 5.06 of this revenue procedure, re

quests for the application of the net interest rate of zero in § 6621(d) to interest accruing before October 1, 1998, should be made on Form 843, Claim for Refund and Request for Abatement.

.02 Where to file. A Form 843 requesting the net rate of zero should be sent to the following address:

Internal Revenue Service Net Rate Interest Netting Claim P.O. Box 9987 Mail Stop 6800 Ogden, UT 84409

or, if sent by other than U. S. mail, to the following address:

Internal Revenue Service Net Rate Interest Netting Claim 1160 West 1200 South Mail Stop 6800 Ogden, UT 84201

.03 Label. The taxpayer should label the top of the Form 843: “Request for Net Interest Rate of Zero Under Rev. Proc. 99–43.” .04 Filing requirements for Form 843.

(1) Line 1 should be left blank. (2) The taxpayer may, but is not required to, place a dollar amount on Line 2. (3) Line 3 should indicate the type of tax and type of return covered by the request. More than one box may be checked if more than one type of tax or return is covered by the request. In addition, any taxes imposed by the Code (or returns for those taxes) for which there is no box on Line 3 should be written in on that line.

background material (such as copies of examination reports, notices, or prior interest computations provided by the Service) relating to the overpayments and underpayments. The background material is needed to assist the Service in determining the period(s) for which the overpayment and underpayment overlap, and the amount of such overlap;

(e) state that, to the extent of equivalent amounts of underpayment and overpayment for the period(s) identified and established under section 5.04(5)(d) of this revenue procedure, the period(s) has (have) been used only once in a request to obtain the net interest rate of zero under § 6621(d); however, if the full amount of the overpayment or underpayment is not used in a netting calculation, the remaining portion may be used in another netting calculation; and

(f) provide a computation, to the extent possible, of the amount of interest to be credited, refunded, or abated to provide a net interest rate of zero for the period(s) of overlap. This computation generally should be made by applying

(4) Line 4 should be left blank. (5) Line 5 should:

(a) identify the taxable periods for which the taxpayer overpaid and underpaid its tax liability. A separate Form 843 is not required for each separate taxable period involved in the request;

(b) state when the taxpayer paid the tax if the underpayment is no longer outstanding;

(c) state when the taxpayer received a refund of tax if the overpayment is no longer outstanding;

(d) identify and establish the period(s) for which the taxpayer’s overpayment and underpayment overlapped and the overlapping amount. For this purpose, the taxpayer should provide any

6621(d) to reduce the taxpayer’s underpayment interest payable to the Service. However, if the Form 843 is filed after December 31, 1999, and only the period of limitation for claiming additional overpayment interest is open on that filing date, the computation should be made by applying § 6621(d) to increase the taxpayer’s overpayment interest payable by the Service.

.05 Verification. The amounts used in a computation provided under section 5.04(5)(f) of this revenue procedure are subject to verification by the Service and may be subject to adjustment for purposes of computing the net interest rate of zero pursuant to § 6621(d).

.06 Special procedure. No Form 843 is required when a computation of interest using the net interest rate of zero under § 6621(d) for interest accruing before October 1, 1998, is requested by a taxpayer in connection with a return (or returns) of the taxpayer under consideration by any function of the Service (including Examination, Appeals, or a case before a federal court that requires a computation of interest by any function of the Service). Rather than filing a Form 843, the taxpayer must furnish a letter or written statement to such function that:

1999–47 I.R.B. 581 November 22, 1999

and the overpayment interest computed and paid on $40,000 for that period.

.04 Example 4. The facts are the same as in Example 3 except that the Serviceinitiated refund was made on November 21, 1994, with interest computed from March 15, 1991, to September 28, 1994. On December 31, 1999, the 6-year period of limitation for claiming additional overpayment interest will be open, but the 2year period of limitation for claiming a refund of underpayment interest paid in 1996 will not be open. After December 31, 1999, but on or before the close of the 6-year period of limitation for claiming additional overpayment interest on Y ’s 1994 refund, Y files a Form 843 requesting the net interest rate of zero under § 6621(d) for the overlap period from March 15, 1993, to September 28, 1994. The Service will pay additional overpayment interest to Y in an amount equal to the difference between the underpayment interest paid on $40,000 for the period from March 15, 1993, to September 28, 1994, and the overpayment interest computed and paid on $40,000 for that period.