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.01 The purpose of this revenue procedure is to inform taxpayers of the new uniform tables for computing interest using the daily compounding rules established under sec6622 of the Internal Revenue Code, effective for all interest computations made after December 31, 1994. These new interest tables were developed by the Service to more accurately compute interest due on tax overpayments and underpayments, and to replace the interest tables in Rev. Proc. 83-7, 1983-1 C.B. 583.
.02 In addition, the new interest tables have been expanded to include increments of 0.5 percent to facilitate the change made by section 713 of the Uruguay Round Agreements Act, P.L. 103-465, which implements the Uruguay Round of General Agreement on Tariffs and Trade (GATT). That change amends sec6621(a)(1) of the Code to lower the rate of interest paid on the portion of a corporate overpayment of tax exceeding $10,000 for periods after December 31, 1994.
.03 Tables are also provided for computing interest under simple interest rates in effect for interest accruing before January 1, 1983.
SEC. 2. BACKGROUND
.01 Section 6601(a) provides the general rule that interest will be charged at the annual rate established...