Part I. Rulings — Internal Revenue Bulletin 2000-12

Section 61.—Gross Income Defined

26 CFR 1.61–21: Taxation of fringe benefits.

Fringe benefits aircraft valuation formula. For purposes of section 1.61–21(g) of the Income Tax Regulations, relating to the rule for valuing noncommercial flights on employer-provided aircraft, the Standard Industry Fare Level (SIFL) cents-per-mile rates and terminal charges in effect for the first half of 2000 are set forth.

Rev. Rul. 2000–13

For purposes of the taxation of fringe benefits under section 61 of the Internal Revenue Code, section 1.61–21(g) of the Income Tax Regulations provides a rule for valuing noncommercial flights on employer-provided aircraft. Section 1.61–21(g)(5) provides an aircraft valuation formula to determine the value of such flights. The value of a flight is determined under the base aircraft valuation formula (also known as the Standard Industry Fare Level formula or SIFL) by

multiplying the SIFL cents-per-mile rates applicable for the period during which the flight was taken by the appropriate aircraft multiple provided in section 1.61–21(g)(7) and then adding the applicable terminal charge. The SIFL cents-permile rates in the formula and the terminal charge are calculated by the Department of Transportation and are reviewed semiannually.

The following chart sets forth the terminal charges and SIFL mileage rates:

Period During Which Terminal SIFL Mileage the Flight Is Taken Charge Rates 1/1/00 - 6/30/00 $32.98 Up to 500 miles = $.1804 per mile 501-1500 miles = $.1376 per mile Over 1500 miles = $.1323 per mile

DRAFTING INFORMATION

The principle author of this revenue ruling is Kathleen Edmondson of the Office of the Associate Chief Counsel (Employee Benefits and Exempt Organizations). For further information regarding this revenue ruling, contact Ms. Edmondson on (202) 622-6080 (not a toll-free call).

Section 165.—Losses

26 CFR 1.165–11: Election in respect of losses attributable to a disaster.

Election in respect of losses attribut- able to a disaster. This ruling lists the areas declared by the President to qualify as major disaster or emergency areas during 1999 under the Disaster Relief and Emergency Assistance Act.

Rev. Rul. 2000–15

Under § 165(i) of the Internal Revenue Code, if a taxpayer suffers a loss attributable to a disaster occurring in an area subsequently determined by the President of

the United States to warrant assistance by the Federal Government under the Disaster Relief and Emergency Assistance Act, 42 U.S.C. §§ 5121–5204c (1988 & Supp. V 1993) (the Act), the taxpayer may elect to claim a deduction for that loss on the taxpayer’s federal income tax return for the taxable year immediately preceding the taxable year in which the disaster occurred. For purposes of § 165(i), a disaster includes an event declared a major disaster or an emergency under the Act.

Section 1.165–11(e) of the Income Tax Regulations provides that the election to deduct a disaster loss for the preceding year must be made by filing a return, an amended return, or a claim for refund on or before the later of (1) the due date of the taxpayer’s income tax return (determined without regard to any extension of time to file the return) for the taxable year in which the disaster actually occurred, or (2) the due date of the taxpayer’s income tax return (determined with regard to any extension of time to file the return) for the taxable year immediately preceding the taxable year in which the disaster actually occurred.

The provisions of § 165(i) apply only to losses that are otherwise deductible under § 165(a). An individual taxpayer may deduct losses if they are incurred in a trade or business, if they are incurred in a transaction entered into for profit, or if they are casualty losses under § 165(c)(3).

The President has determined that during 1999 the areas listed below have been adversely affected by disasters of sufficient severity and magnitude to warrant assistance by the Federal Government under the Act.

DRAFTING INFORMATION

The principal author of this revenue ruling is Timothy Sheppard of the Office of Assistant Chief Counsel (Income Tax and Accounting). For further information regarding this revenue ruling, contact Robert M. Casey on (202) 622-4960 (not a toll-free call).

March 20, 2000 774 2000–12 I.R.B.

Disaster Areas Type of Date of in 1999 Disaster Disaster

Arizona

County of Maricopa Severe storms, flooding, September 14-23 and high winds

Arkansas

Counties of Bradley, Chicot, Clay, Columbia, Drew, Faulkner, Grant, Severe storms, tornadoes, January 21-31 Greene, Hempstead, Independence, Jackson, Jefferson, Lafayette, and high winds Lonoke, Miller, Monroe, Poinsett, Pulaski, Randolph, St. Francis, Saline, and White; and City of Beebe in White County

California

Counties of Butte, Humboldt, Napa, Plumas, San Bernardino, Shasta, Severe fires August 24Tehama, Trinity, Tuolome, and Yuba November 29

Colorado

Counties of Bent, Crowley, Custer, Elbert, El Paso, Fremont, Kiowa, Severe storms, April 29-May 19 Larimer, Las Animas, Otero, Pueblo, and Weld flooding, landslides, and mudslides

Connecticut

Counties of Fairfield, Litchfield, and Hartford High winds, September 16-21 heavy rain and flooding associated with Tropical Storm Floyd

Delaware

County of New Castle Hurricane Floyd September 15-17

Florida

Counties of Alachua, Baker, Bay, Bradford, Brevard, Broward, Calhoun, Fire hazards April 15-May 25 Charlotte, Clay, Collier, Columbia, Dade, De Soto, Duval, Franklin, Gadsden, Gilchrist, Glades, Gulf, Hamilton, Hardee, Hendry, Highlands, Hillsbrough, Holms, Indian River, Jackson, Jefferson, Lee, Leon, Levy, Liberty, Manatee, Marion, Martin, Monroe, Nassau, Okeechobee Orange,

Osceola, Palm Beach Pinellas, Polk, Putnam, Sarasota, Seminole, St. Lucie, Swannee, Union, Wakulla, Walton, and Washington

Counties of Brevard, Duval, Flagler, Glades, Highlands, Indian River, Hurricane Floyd September 13-25 Martin, Nassau, Palm Beach, St. Johns, St. Lucie, and Volusia.

Counties of Broward and Dade Hurricane Floyd September 14-16

Counties of Brevard, Broward, Collier, Dade, Flagler, Glades, Hendry, Hurricane Irene October 14-24 Highlands, Indian River, Martin, Monroe, Okeechobee, Orange, Osceola, Palm Beach, Polk, St. Lucie, Seminole, and Volusia

Counties of Charlotte, De Soto, Hardee, Hillsborough, Lake, Lee, Hurricane Irene October 14-24 Manatee, Pasco, Pinellas, and Sarasota

Georgia

Counties of Candler and Dooly Severe storms and April 15 tornadoes

Counties of Bryan, Camden, Chatham, Glynn, Liberty, and McIntosh Hurricane Floyd September 14-17

Illinois

Counties of Adams, Brown, Bureau, Calhoun, Cass, Champaign, Record/near January 1-15 Christian, Cook, DeWitt, Douglas, DuPage, Ford, Fulton, Greene, Grundy, record snow Hancock, Henderson, Henry, Iroquois, Kane, Kankakee, Kendall, Knox, Lake, La Salle, Livingston, Logan, Macon, Marshall, Mason, McDonough,

2000–12 I.R.B. 775 March 20, 2000

McHenry, McLean, Mercer, Menard, Morgan, Moultrie, Peoria, Piatt, Pike, Putnam, Sangamon, Schuyler, Scott, Shelby, Stark, Tazewell, Vermillion, Warren, Will, and Woodford

County of Jo Daviess Severe storms and May 16-17 flash flooding

Indiana

Counties of Adams, Allen, Benton, Blackford, Boone, Carroll, Cass, Clay, Record/near record January 1-15 Clinton, DeKalb, Delaware, Elkhart, Fayette, Fountain, Fulton, Grant, snow Hamilton, Hancock, Hendricks, Henry, Howard, Huntington, Jasper, Jay, Johnson, Kosciusko, Lake, Lagrange, LaPorte, Madison, Marion, Marshall, Miami, Montgomery, Morgan, Newton, Noble, Parke, Porter, Pulaski, Putnam, Randolph, Rush, St. Joseph, Shelby, Starke, Steuben, Tipton, Tippecanoe, Vermillion, Vigo, Wabash, Warren, Wayne, Wells, White, and Whitley

Iowa

Counties of Black Hawk, Bremer, Buchanan, Butler, Chickasaw, Clayton, Severe storms, May 16-29 Clinton, Crawford, Delaware, Dubuque, Fayette, Harrison, Jones, Linn, flooding, and tornadoes Montgomery, and Scott

Counties of Black Hawk, Bremer, Buchanan, Butler, Cerro Gordo, Severe storms and July 2-August 10 Chickasaw, Clayton, Crawford, Fayette, Floyd, Harrison, Howard, Jones, flooding Linn, Mills, Mitchell, Montgomery, Pottawattamie, Story, Woodbury, and Worth

Kansas

Counties of Reno, Sedgwick, and Sumner Severe storms and May 3-6 tornadoes

Louisiana

Parishes of Bossier, Caddo, Claiborne, De Soto, and Webster Severe storms, tornadoes, April 3-7 and flooding

Maine

Counties of Androscoggin, Cumberland, Kennebec, Oxford, and Somerset Hurricane Floyd September 16-19

Maryland

Counties of Anne Arundel, Calvert, Caroline, Cecil, Charles, Harford, Hurricane Floyd September 16-20 Kent, Queen Anne’s, Somerset, St. Mary’s, and Talbot

Massachusetts

County of Worcester Fire December 3-13

Michigan

Counties of Alcona, Allegan, Arenac, Barry, Berrien, Cass, Crawford, Near record snow January 2-15 Ionia, Iosco, Jackson, Kalamazoo, Kent, Lawrence, Lenawee, Macomb, Marquette, Mecosta, Monroe, Montmorency, Muskegeon, Newaygo, Oakland, Oceana, Ogemaw, Osceola, Oscoda, Otsego, Ottawa, St. Joseph, Van Buren, Washtenaw, and Wayne

Minnesota

Counties of Kittston, Marshall, Pennington, Polk, Red Lake, and Roseau Severe ice storms, March 1-May 30 flooding and heavy rains

Counties of Aitkin, Beltrami, Cass, Clay, Cook, Hubbard, Itasca, Lake, Severe storms, winds, July 4-August 2 and St. Louis and flooding

Missouri

Counties of Andrew, Cole, Iron, Macon, Madison, and Osage Severe storms and April 3-14 flooding

March 20, 2000 776 2000–12 I.R.B.

Nebraska

Counties of Burt, Douglas, and Washington Severe storms and August 6-9 flooding

Nevada

County of Clark Severe storms and July 8-16 flash flooding

New Hampshire

Counties of Belknap, Cheshire, and Grafton Tropical Storm Floyd September 16-18

New Jersey

Counties of Atlantic, Bergen, Burlington, Camden, Cape May, Hurricane Floyd September 16-18 Cumberland, Essex, Glouscester, Hudson, Hunterdon, Mercer, Middlesex, Monmouth, Morris, Ocean, Passaic, Salem, Somerset, Sussex, Union, and Warren

New Mexico

Counties of Dona Ana, Luna, Mora, Rio Arriba, San Juan, Sandoval, and Severe storms and July 16-August 7 Sierra; and the Mescalero Apache Reservation flooding

New York

Counties of Cattaraugus, Chautauqua, Erie, Genesee, Jefferson, Lewis, Near recod snow January 1-15 Niagara, Orleans, St. Lawrence, and Wyoming

Counties of Livingston, Monroe, Ontario, Orleans, Wayne, and Wyoming Near record snow March 3-6

Counties of Albany, Dutchess, Essex, Greene, Nassau, Orange, Putnam, Hurricane Floyd September 16-18 Rensselaer, Rockland, Schenectady, Schoharie, Suffolk, Ulster, Warren, and Westchester

North Carolina

Counties of Beaufort, Brunswick, Carteret, Craven, Currituck, Dare, Hurricane Dennis August 29Hyde, New Hanover, Onslow, Pamlico, and Pender September 11

Counties of Alamance, Anson, Beaufort, Bertie, Bladen, Brunswick, Hurricane Floyd September 15Camden, Carteret, Caswell, Chatham, Chowan, Columbus, Craven, November 2 Cumberland, Currituck, Dare, Davidson, Duplin, Durham, Edgecombe, Forsyth, Franklin, Gates, Granville, Greene, Guilford, Halifax, Harnett, Hertford, Hoke, Hyde, Johnston, Jones, Lee, Lenoir, Martin, Montgomery,

Moore, Nash, New Hanover, Northampton, Onslow, Orange, Pamlico, Pasquotank, Pender, Perquimans, Person, Pitt, Randolph, Richmond, Robeson, Rockingham, Rowan, Sampson, Scotland, Stanly, Stokes, Tyrrell, Union, Vance, Wake, Warren, Washington, Wayne, and Wilson

North Dakota

Counties of Barnes, Benson, Bottineau, Burke, Burleigh, Cass, Cavalier, Severe storms, March 1-July 19 Dickey, Divide, Eddy, Emmons, Foster, Grand Forks, Griggs, Kidder, flooding, snow and ice, LaMoure, Logan, McHenry, McIntosh, McLean, Mercer, Morton, ground saturation, Mountrail, Nelson, Pembina, Pierce, Ramsey, Ransom, Renville, landslides, mudslides, Richland, Rolette, Sargent, Sheridan, Sioux, Steele, Stutsman, Towner, and tornadoes Traill, Walsh, Ward, Wells, and Williams; and the Indian Reservations of the Spirit Lake Sioux Tribe, Standing Rock Soiux (that portion of the reservation that lies within the State of North Dakota), Three Affiliated Tribes, and Turtle Mountain Band of Chippewa

Oklahoma

Counties of Caddo, Canadian, Cleveland, Craig, Creek, Grady, Kingfisher, Tornadoes and severe May 3-5 Latimer, Le Flore, Lincoln, Logan, McClain, Noble, Oklahoma, storms Okmulgee, Ottawa, Payne Pottawatomie, and Tulsa

2000–12 I.R.B. 777 March 20, 2000

Pennsylvania

Counties of Juniata and McKean Severe storms August 20-21 and flooding

Counties of Dauphin, Lycoming, Northumberland, Snyder, and Union Severe flash flooding September 6-7 associated with Tropical Depression Dennis

Counties of Berks, Bucks, Chester, Delaware, Lancaster, Montgomery, Hurricane Floyd September 16-29 Philadelphia, and York

Puerto Rico

All 78 municipalities Hurrican Lenny November 17-20

South Carolina

Counties Allendale, Bamberg, Barnwell, Beaufort, Berkeley, Calhoun, Hurricane Floyd September 14-30 Charleston, Chesterfield, Clarendon, Colleton, Darlington, Dillon, Dorchester, Florence, Georgetown, Hampton, Horry, Jasper, Kershaw, Lee, Lexington, Marion, Marlboro, Orangeburg, Richland, Sumter, and Williamsburg

South Dakota

County of Shannon and the Pine Ridge Indian Reservation Severe storms, June 4-18 tornadoes, and flooding

Tennessee

Counties of Benton, Carroll, Crockett, Decatur, Dickson, Fayette, Severe storms, January 17Franklin, Giles, Hardeman, Haywood, Henderson, Houston, Humphreys, tornadoes, and February 1 Jackson, Lauderdale, Lawrence, Lewis, Madison, Maury, Montgomery, high winds Perry, Stewart, Warren, and Wayne

Counties of Cheatham, Chester, Davidson, Decatur, Dickson, Severe storms, May 5-19 Hardeman, Hardin, Henderson, Hickman, Houston, Humphreys, tornadoes, and Lawrence, McNairy, Perry, Stewart, Sumner, White, and Williamson flooding

Texas

Counties of Bowie, Gregg, Red River, and Titus Severe storms May 4 and tornadoes

Counties of Anderson, Andrews, Angelina, Archer, Armstrong, Austin, Extreme fire August 1Bailey, Bandera, Bastrop, Baylor, Bell, Bexar, Blanco, Borden, Bosque, hazards December 10 Bowie, Brazoria, Brazos, Brewster, Briscoe, Brown, Burleson, Burnet, Caldwell, Calhoun, Callahan, Camp, Carson, Cass, Castro, Chambers, Cherokee, Childress, Clay, Cochran, Coke, Coleman, Collin, Collingsworth, Colorado, Comal, Comanche, Concho, Cooke, Coryell,

Cottle, Crane, Crockett, Crosby, Culberson, Dallam, Dallas, Dawson, Deaf Smith, Delta, Denton, DeWitt, Dickens, Donley, Eastland, Ector, Edwards, El Paso, Ellis, Erath, Falls, Fannin, Fayette, Fisher, Floyd, Foard, Fort Bend, Franklin, Freestone, Gaines, Galveston, Garza, Gillespie, Glasscock, Gonzales, Gray, Grayson, Gregg, Grimes, Guadalupe, Hale, Hall, Hamilton, Hansford, Hardeman, Hardin, Harris, Harrison, Hartley, Haskell, Hays, Hemphill, Henderson, Hill, Hockley, Hood, Hopkins, Houston, Howard, Hudspeth, Hunt, Hutchinson, Irion, Jack, Jackson, Jasper, Jeff Davis, Jefferson, Johnson, Jones, Kaufman, Kendall, Kent, Kerr, Kimble, King, Kinney, Knox, Lamar, Lamb, Lampasas, Lavaca, Lee, Leon, Liberty, Limestone, Lipscomb, Llano, Loving, Lubbock, Lynn, Madison, Marion, Martin, Mason, Matagorda, McCulloch, McLennan, Medina, Menard, Midland, Milam, Mills, Mitchell, Montague, Montgomery, Moore, Morris, Motley, Nacogdoches,

March 20, 2000 778 2000–12 I.R.B.

Navarro, Newton, Nolan, Ochiltree, Oldham, Orange, Palo Pinto, Panola, Parker, Parmer, Pecos, Polk, Potter, Presidio, Rains, Randall, Reagan, Real, Red River, Reeves, Roberts, Robertson, Rockwall, Runnels, Rusk, Sabine, San Augustine, San Jacinto, San Saba, Schleicher, Scurry, Shackelford, Shelby, Sherman, Smith, Somerveil, Stephens, Sterling, Stonewall, Sutton, Swisher, Tarrant, Taylor, Terrell, Terry, Throckmorton, Titus, Tom Green, Travis, Trinity, Tyler, Upshur, Upton, Uvalde, Val Verde, Van Zandt, Victoria, Walker, Waller, Ward, Washington, Wharton, Wheeler, Wichita, Wilbarger, Williamson, Wilson, Winkler, Wise, Wood, Yoakum, and Young

Counties of Aransas, Brooks, Cameron, Duval, Hidalgo, Jim Hogg, Severe storms August 21-26 Jim Wells,Kenedy, Kleberg, Nueces, San Patricio, Webb, and Willacy and flooding caused by Hurricane Bret

U.S. Virgin Islands

The U.S. Virgin Islands Hurricane Lenny November 16-20

Utah

County of Salt Lake Tornado, severe August 11 thunderstorms, and hail

Vermont

Counties of Bennington, Caledonia, Essex, Lamoille, Orange, Orleans, Severe storms September 16-21 Rutland, Washington, Windham, and Windsor and flooding associated with Hurricane Floyd

Virginia

City of Hampton Tropical Storm August 27Dennis September 13

Counties of Accomack, Brunswick, Caroline, Charles City, Chesterfield, Hurricane Floyd September 13-26 Dinwiddie, Essex, Fairfax, Gloucester, Greenville, Halifax, Hanover, Henrico, Isle of Wight, James City, King and Queen, King George, King William, Lancaster, Lunenberg, Mathews, Mecklenburg, Middlesex, New Kent, Northampton, Northumberland, Prince George, Richmond, Southampton, Surry, Sussex, Westmoreland, and York, and Cities of Chesapeake City, Colonial Heights, Emporia, Franklin, Hampton, Hopewell, Newport News, Norfolk, Petersburg, Poquoson, Portsmouth, Richmond, Suffolk, Virginia Beach, and Williamsburg

Wisconsin

Counties of Ashland, Bayfield, Douglas, Florence, Iron, Oneida, Price, Severe storms, straight- July 4-31 Rusk, Sawyer, and Vilas line winds, and flooding

Section 472.—Last-in, First-out Inventories

26 CFR 1.472–1: Last-in, first-out inventories.

LIFO; price indexes; department stores. The January 2000 Bureau of Labor Statistics price indexes are accepted for use by department stores employing the retail inventory and last-in, first-out inventory methods for valuing inventories for tax years ended on, or with reference to, January 31, 2000.

Rev. Rul. 2000–14

The following Department Store Inventory Price Indexes for January 2000 were issued by the Bureau of Labor Statistics. The indexes are accepted by the Internal Revenue Service, under § 1.472–1(k) of the Income Tax Regulations and Rev. Proc. 86–46, 1986–2 C.B. 739, for appropriate application to inventories of department stores employing the retail inventory and last-in, first-out inventory

methods for tax years ended on, or with reference to, January 31, 2000.

The Department Store Inventory Price Indexes are prepared on a national basis and include (a) 23 major groups of departments, (b) three special combinations of the major groups - soft goods, durable goods, and miscellaneous goods, and (c) a store total, which covers all departments, including some not listed separately, except for the following: candy, food, liquor, tobacco, and contract departments.

2000–12 I.R.B. 779 March 20, 2000

BUREAU OF LABOR STATISTICS, DEPARTMENT STORE INVENTORY PRICE INDEXES BY DEPARTMENT GROUPS

(January 1941 = 100, unless otherwise noted)

Percent Change Groups Jan. Jan. from Jan. 1999 1999 2000 to Jan. 2000 ¹

Piece Goods - - - - - - - - - - - - - - - - - - - - - - - 507.3 493.8 -2.7
Domestics and Draperies - - - - - - - - - - - - - - - 643.1 622.0 -3.3
Women’s and Children’s Shoes - - - - - - - - - - - 640.4 613.3 -4.2
Men’s Shoes - - - - - - - - - - - - - - - - - - - - - - - 894.0 887.2 -0.8
Infants’ Wear - - - - - - - - - - - - - - - - - - - - - - - 628.6 650.8 3.5
Women’s Underwear - - - - - - - - - - - - - - - - - 560.7 571.4 1.9
Women’s Hosiery - - - - - - - - - - - - - - - - - - - - 316.2 327.6 3.6
Women’s and Girls’Accessories - - - - - - - - - - 535.4 530.3 -1.0
Women’s Outerwear and Girls’ Wear - - - - - - - 376.9 369.1 -2.1
Men’s Clothing - - - - - - - - - - - - - - - - - - - - - 603.8 612.9 1.5
Men’s Furnishings - - - - - - - - - - - - - - - - - - - 585.2 618.0 5.6
Boys’ Clothing and Furnishings - - - - - - - - - - 482.1 497.1 3.1
Jewelry - - - - - - - - - - - - - - - - - - - - - - - - - - 965.3 962.0 -0.3
Notions - - - - - - - - - - - - - - - - - - - - - - - - - - 729.7 764.5 4.8
Toilet Articles and Drugs - - - - - - - - - - - - - - - 946.8 970.9 2.5
Furniture and Bedding - - - - - - - - - - - - - - - - 678.4 697.0 2.7
Floor Coverings - - - - - - - - - - - - - - - - - - - - - 602.4 603.2 0.1
Housewares - - - - - - - - - - - - - - - - - - - - - - - 813.6 789.9 -2.9
Major Appliances - - - - - - - - - - - - - - - - - - - - 237.7 233.3 -1.9
Radio and Television - - - - - - - - - - - - - - - - - 69.6 62.7 -9.9
Recreation and Education ² - - - - - - - - - - - - - - 100.7 95.2 -5.5
Home Improvements ² - - - - - - - - - - - - - - - - - 130.3 129.8 -0.4
Auto Accessories ² - - - - - - - - - - - - - - - - - - - 107.8 107.6 -0.2

Groups 1 - 15: Soft Goods - - - - - - - - - - - - - - - - - 586.4 588.6 0.4

Groups 16 - 20: Durable Goods - - - - - - - - - - - - - - 459.0 446.2 -2.8

Groups 21 - 23: Misc. Goods ² - - - - - - - - - - - - - - - 106.0 102.2 -3.6

Store Total ³ - - - - - - - - - - - - - - - - - - - - - - - - - - - 539.4 535.4 -0.7

1 Absence of a minus sign before the percentage change in this column signifies a price increase. 2 Indexes on a January 1986=100 base. 3 The store total index covers all departments, including some not listed separately, except for the following: candy, food, liquor, tobacco, and contract departments.

DRAFTING INFORMATION

The principal author of this revenue ruling is Alan J. Tomsic of the Office of Assistant Chief Counsel (Income Tax and Accounting). For further information regarding this revenue ruling, contact Mr. Tomsic on (202) 622-4970 (not a toll-free call).

Section 6621.—Determination of Interest Rate

26 CFR 301.6621–1: Interest rate.

Interest rates; underpayements and overpayments. The rate of interest determined under section 6621 of the Code for the calendar quarter beginning April 1,

2000, will be 9 percent for overpayments (8 percent in the case of a corporation), 9 percent for underpayments, and 11 percent for large corporate underpayments. The rate of interest paid on the portion of a corporate overpayment exceeding $10,000 is 6.5 percent.

Rev. Rul. 2000–16

Section 6621 of the Internal Revenue Code establishes the rates for interest on tax overpayments and tax underpayments. Under § 6621(a)(1), the overpayment rate beginning April 1, 2000, is the sum of the federal short-term rate plus 3 percentage points (2 percentage points in the case of a corporation), except the rate for the por

tion of a corporate overpayment of tax exceeding $10,000 for a taxable period is the sum of the federal short-term rate plus 0.5 of a percentage point for interest computations made after December 31, 1994. Under § 6621(a)(2), the underpayment rate is the sum of the federal short-term rate plus 3 percentage points.

Section 6621(c) provides that for purposes of interest payable under § 6601 on any large corporate underpayment, the underpayment rate under § 6621(a)(2) is determined by substituting “5 percentage points” for “3 percentage points.” See § 6621(c) and § 301.6621–3 of the Regulations on Procedure and Administration for the definition of a large corporate underpayment and for the rules for determining

March 20, 2000 780 2000–12 I.R.B.

the applicable date. Section 6621(c) and § 301.6621–3 are generally effective for periods after December 31, 1990.

Section 6621(b)(1) provides that the Secretary will determine the federal shortterm rate for the first month in each calendar quarter.

Section 6621(b)(2)(A) provides that the federal short-term rate determined under § 6621(b)(1) for any month applies during the first calendar quarter beginning after such month.

Section 6621(b)(2)(B) provides that in determining the addition to tax under § 6654 for failure to pay estimated tax for any taxable year, the federal short-term rate that applies during the third month following such taxable year also applies during the first 15 days of the fourth month following such taxable year.

Section 6621(b)(3) provides that the federal short-term rate for any month is the federal short-term rate determined during such month by the Secretary in accordance with § 1274(d), rounded to the nearest full percent (or, if a multiple of 1/2 of 1 percent, the rate is increased to

the next highest full percent).

Notice 88–59, 1988–1 C.B. 546, announced that, in determining the quarterly interest rates to be used for overpayments and underpayments of tax under § 6621, the Internal Revenue Service will use the federal short-term rate based on daily compounding because that rate is most consistent with § 6621 which, pursuant to § 6622, is subject to daily compounding.

Rounded to the nearest full percent, the federal short- term rate based on daily compounding determined during the month of January 2000 is 6 percent. Accordingly, an overpayment rate of 9 percent (8 percent in the case of a corporation) and an underpayment rate of 9 percent are established for the calendar quarter beginning April 1, 2000. The overpayment rate for the portion of a corporate overpayment exceeding $10,000 for the calendar quarter beginning April 1, 2000, is 6.5 percent. The underpayment rate for large corporate underpayments for the calendar quarter beginning April 1, 2000, is 11 percent. These rates apply to amounts bearing interest during that cal

endar quarter.

Under § 6621(b)(2)(B), the 8 percent rate that applies to estimated tax underpayments for the first calendar quarter in 2000, as provided in Rev. Rul. 99–53, 1999–50 I.R.B. 657, also applies to such underpayments for the first 15 days in April 2000.

Interest factors for daily compound interest for annual rates of 6.5 percent, 8 percent, 9 percent, and 11 percent are published in Tables 66, 69, 71, and 75 of Rev. Proc. 95–17,1995–1 C.B. 556, 620, 623, 625, and 629. Annual interest rates to be compounded daily pursuant to § 6622 that apply for prior periods are set forth in the tables accompanying this revenue ruling.

DRAFTING INFORMATION

The principal author of this revenue ruling is Raymond Bailey of the Office of Assistant Chief Counsel (Income Tax and Accounting). For further information regarding this revenue ruling, contact Mr. Bailey on (202) 622-6226 (not a toll-free call).

TABLE OF INTEREST RATES PERIODS BEFORE JUL. 1, 1975 - PERIODS ENDING DEC. 31, 1986

OVERPAYMENTS AND UNDERPAYMENTS

In 1995–1 C.B. PERIOD RATE DAILY RATE TABLE

Before Jul. 1, 1975 6% Table 2, pg. 557 Jul. 1, 1975—Jan. 31, 1976 9% Table 4, pg. 559 Feb. 1, 1976—Jan. 31, 1978 7% Table 3, pg. 558 Feb. 1, 1978—Jan. 31, 1980 6% Table 2, pg. 557 Feb. 1, 1980—Jan. 31, 1982 12% Table 5, pg. 560 Feb. 1, 1982—Dec. 31, 1982 20% Table 6, pg. 560 Jan. 1, 1983—Jun. 30, 1983 16% Table 37, pg. 591 Jul. 1, 1983—Dec. 31, 1983 11% Table 27, pg. 581 Jan. 1, 1984—Jun. 30, 1984 11% Table 75, pg. 629 Jul. 1, 1984—Dec. 31, 1984 11% Table 75, pg. 629 Jan. 1, 1985—Jun. 30, 1985 13% Table 31, pg. 585 Jul. 1, 1985—Dec. 31, 1985 11% Table 27, pg. 581 Jan. 1, 1986—Jun. 30, 1986 10% Table 25 pg. 579 Jul. 1, 1986—Dec. 31, 1986 9% Table 23, pg. 577

2000–12 I.R.B. 781 March 20, 2000

TABLE OF INTEREST RATES FROM JAN. 1, 1987 - Dec. 31, 1998

OVERPAYMENTS UNDERPAYMENTS

1995–1 C.B. 1995–1 C.B. RATE TABLE PG RATE TABLE PG Jan. 1, 1987—Mar. 31, 1987 8% 21 575 9% 23 577 Apr. 1, 1987—Jun. 30, 1987 8% 21 575 9% 23 577 Jul. 1, 1987—Sep. 30, 1987 8% 21 575 9% 23 577 Oct. 1, 1987—Dec. 31, 1987 9% 23 577 10% 25 579 Jan. 1, 1988—Mar. 31, 1988 10% 73 627 11% 75 629 Apr. 1, 1988—Jun. 30, 1988 9% 71 625 10% 73 627 Jul. 1, 1988—Sep. 30, 1988 9% 71 625 10% 73 627 Oct. 1, 1988—Dec. 31, 1988 10% 73 627 11% 75 629 Jan. 1, 1989—Mar. 31, 1989 10% 25 579 11% 27 581 Apr. 1, 1989—Jun. 30, 1989 11% 27 581 12% 29 583 Jul. 1, 1989—Sep. 30, 1989 11% 27 581 12% 29 583 Oct. 1, 1989—Dec. 31, 1989 10% 25 579 11% 27 581 Jan. 1, 1990—Mar. 31, 1990 10% 25 579 11% 27 581 Apr. 1, 1990—Jun. 30, 1990 10% 25 579 11% 27 581 Jul. 1, 1990—Sep. 30, 1990 10% 25 579 11% 27 581 Oct. 1, 1990—Dec. 31, 1990 10% 25 579 11% 27 581 Jan. 1, 1991—Mar. 31, 1991 10% 25 579 11% 27 581 Apr. 1, 1991—Jun. 30, 1991 9% 23 577 10% 25 579 Jul. 1, 1991—Sep. 30, 1991 9% 23 577 10% 25 579 Oct. 1, 1991—Dec. 31, 1991 9% 23 577 10% 25 579 Jan. 1, 1992—Mar. 31, 1992 8% 69 623 9% 71 625 Apr. 1, 1992—Jun. 30, 1992 7% 67 621 8% 69 623 Jul. 1, 1992—Sep. 30, 1992 7% 67 621 8% 69 623 Oct. 1, 1992—Dec. 31, 1992 6% 65 619 7% 67 621 Jan. 1, 1993—Mar. 31, 1993 6% 17 571 7% 19 573 Apr. 1, 1993—Jun. 30, 1993 6% 17 571 7% 19 573 Jul. 1, 1993—Sep. 30, 1993 6% 17 571 7% 19 573 Oct. 1, 1993—Dec. 31, 1993 6% 17 571 7% 19 573 Jan. 1, 1994—Mar. 31, 1994 6% 17 571 7% 19 573 Apr. 1, 1994—Jun. 30, 1994 6% 17 571 7% 19 573 Jul. 1, 1994—Sep. 30, 1994 7% 19 573 8% 21 575 Oct. 1, 1994—Dec. 31, 1994 8% 21 575 9% 23 577 Jan. 1, 1995—Mar. 31, 1995 8% 21 575 9% 23 577 Apr. 1, 1995—Jun. 30, 1995 9% 23 577 10% 25 579 Jul. 1, 1995—Sep. 30, 1995 8% 21 575 9% 23 577 Oct. 1, 1995—Dec. 31, 1995 8% 21 575 9% 23 577 Jan. 1, 1996—Mar. 31, 1996 8% 69 623 9% 71 625 Apr. 1, 1996—Jun. 30, 1996 7% 67 621 8% 69 623 Jul. 1, 1996—Sep. 30, 1996 8% 69 623 9% 71 625 Oct. 1, 1996—Dec. 31, 1996 8% 69 623 9% 71 625 Jan. 1, 1997—Mar. 31, 1997 8% 21 575 9% 23 577 Apr. 1, 1997—Jun. 30, 1997 8% 21 575 9% 23 577 Jul. 1, 1997—Sep. 30, 1997 8% 21 575 9% 23 577 Oct. 1, 1997—Dec. 31, 1997 8% 21 575 9% 23 577 Jan. 1, 1998—Mar. 31, 1998 8% 21 575 9% 23 577 Apr. 1, 1998—Jun. 30, 1998 7% 19 573 8% 21 575 Jul. 1, 1998—Sep. 30, 1998 7% 19 573 8% 21 575 Oct. 1, 1998—Dec. 31, 1998 7% 19 573 8% 21 575

March 20, 2000 782 2000–12 I.R.B.

TABLE INTEREST RATES

FROM JANUARY 1, 1999 - PRESENT

NONCORPORATE OVERPAYMENTS AND UNDERPAYMENTS

1995–1 C.B. RATE TABLE PAGE Jan. 1, 1999—Mar. 31, 1999 7% 19 573 Apr. 1, 1999—Jun. 30, 1999 8% 21 575 Jul. 1, 1999—Sep. 30, 1999 8% 21 575 Oct. 1, 1999—Dec. 31, 1999 8% 21 575 Jan. 1, 2000—Mar. 31, 2000 8% 69 623 Apr. 1, 2000—Jun. 30, 2000 9% 71 625

TABLE OF INTEREST RATES

FROM JANUARY 1, 1999 - PRESENT

CORPORATE OVERPAYMENTS AND UNDERPAYMENTS

OVERPAYMENTS UNDERPAYMENTS 1995–1 C.B 1995–1 C.B. RATE TABLE PG RATE TABLE PG

Jan. 1, 1999—Mar. 31, 1999 6% 17 571 7% 19 573 Apr. 1, 1999—Jun. 30, 1999 7% 19 573 8% 21 575 Jul. 1, 1999—Sep. 30, 1999 7% 19 573 8% 21 575 Oct. 1, 1999—Dec. 31, 1999 7% 19 573 8% 21 575 Jan. 1, 2000—Mar. 31, 2000 7% 67 621 8% 69 623 Apr. 1, 2000—Jun. 30, 2000 8% 69 623 9% 71 625

TABLE OF INTEREST RATES FOR LARGE CORPORATE UNDERPAYMENTS

FROM JANUARY 1, 1991 - PRESENT

1995–1 C.B. RATE TABLE PG

Jan. 1, 1991—Mar. 31, 1991 13% 31 85 Apr. 1, 1991—Jun. 30, 1991 12% 29 583 Jul. 1, 1991—Sep. 30, 1991 12% 29 583 Oct. 1, 1991—Dec. 31, 1991 12% 29 583 Jan. 1, 1992—Mar. 31, 1992 11% 75 629 Apr. 1, 1992—Jun. 30, 1992 10% 73 627 Jul. 1, 1992—Sep. 30, 1992 10% 73 627 Oct. 1, 1992—Dec. 31, 1992 9% 71 625 Jan. 1, 1993—Mar. 31, 1993 9% 23 577 Apr. 1, 1993—Jun. 30, 1993 9% 23 577 Jul. 1, 1993—Sep. 30, 1993 9% 23 577 Oct. 1, 1993—Dec. 31, 1993 9% 23 577 Jan. 1, 1994—Mar. 31, 1994 9% 23 577 Apr. 1, 1994—Jun. 30, 1994 9% 23 577 Jul. 1, 1994—Sep. 30, 1994 10% 25 579 Oct. 1, 1994—Dec. 31, 1994 11% 27 581 Jan. 1, 1995—Mar. 31, 1995 11% 27 581 Apr. 1, 1995—Jun. 30, 1995 12% 29 583 Jul. 1, 1995—Sep. 30, 1995 11% 27 581 Oct. 1, 1995—Dec. 31, 1995 11% 27 581 Jan. 1, 1996—Mar. 31, 1996 11% 75 629 Apr. 1, 1996—Jun. 30, 1996 10% 73 627

2000–12 I.R.B. 783 March 20, 2000

TABLE OF INTEREST RATES FOR LARGE CORPORATE UNDERPAYMENTS—Continued

FROM JANUARY 1, 1991 - PRESENT

1995–1 C.B. RATE TABLE PG

Jul. 1, 1996—Sep. 30, 1996 11% 75 629 Oct. 1, 1996—Dec. 31, 1996 11% 75 629 Jan. 1, 1997—Mar. 31, 1997 11% 27 581 Apr. 1, 1997—Jun. 30, 1997 11% 27 581 Jul. 1, 1997—Sep. 30, 1997 11% 27 581 Oct. 1, 1997—Dec. 31, 1997 11% 27 581 Jan. 1, 1998—Mar. 31, 1998 11% 27 581 Apr. 1, 1998—Jun. 30, 1998 10% 25 579 Jul. 1, 1998—Sep. 30, 1998 10% 25 579 Oct. 1, 1998—Dec. 31, 1998 10% 25 579 Jan. 1, 1999—Mar. 31, 1999 9% 23 577 Apr. 1, 1999—Jun. 30, 1999 10% 25 579 Jul. 1, 1999—Sep. 30, 1999 10% 25 579 Oct. 1, 1999—Dec. 31, 1999 10% 25 579 Jan. 1, 2000—Mar. 31, 2000 10% 73 627 Apr. 1, 2000—Jun. 30, 2000 11% 75 629

TABLE OF INTEREST RATES FOR CORPORATE

OVERPAYMENTS EXCEEDING $10,000

FROM JANUARY 1, 1995 - PRESENT

1995–1 C.B. RATE TABLE PG Jan. 1, 1995—Mar. 31, 1995 6.5% 18 572 Apr. 1, 1995—Jun. 30, 1995 7.5% 20 574 Jul. 1, 1995—Sep. 30, 1995 6.5% 18 572 Oct. 1, 1995—Dec. 31, 1995 6.5% 18 572 Jan. 1, 1996—Mar. 31, 1996 6.5% 66 620 Apr. 1, 1996—Jun. 30, 1996 5.5% 64 618 Jul. 1, 1996—Sep. 30, 1996 6.5% 66 620 Oct. 1, 1996—Dec. 31, 1996 6.5% 66 620 Jan. 1, 1997—Mar. 31, 1997 6.5% 18 572 Apr. 1, 1997—Jun. 30, 1997 6.5% 18 572 Jul. 1, 1997—Sep. 30, 1997 6.5% 18 572 Oct. 1, 1997—Dec. 31, 1997 6.5% 18 572 Jan. 1, 1998—Mar. 31, 1998 6.5% 18 572 Apr. 1, 1998—Jun. 30, 1998 5.5% 16 570 Jul. 1. 1998—Sep. 30, 1998 5.5% 16 570 Oct. 1, 1998—Dec. 31, 1998 5.5% 16 570 Jan. 1, 1999—Mar. 31, 1999 4.5% 14 568 Apr. 1, 1999—Jun. 30, 1999 5.5% 16 570 Jul. 1, 1999—Sep. 30, 1999 5.5% 16 570 Oct. 1, 1999—Dec. 31, 1999 5.5% 16 570 Jan. 1, 2000—Mar. 31, 2000 5.5% 64 618 Apr. 1, 2000—Jun. 30, 2000 6.5% 66 620

March 20, 2000 784 2000–12 I.R.B.