Free Reply to Response to Motion - District Court of Colorado - Colorado

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Section 6621.--Determination of Interest Rate
26 CFR 301.6621-1: Interest rate.

Interest rates; underpayments and overpayments. The rate of interest determined under section 6621 of the Code for the calendar quarter beginning July 1, 2006, will be 8 percent for overpayments (7 percent in the case of a corporation), 8 percent for underpayments, and 10 percent for large corporate underpayments. The rate of interest paid on the portion of a corporate overpayment exceeding $10,000 will be 5.5 percent. Rev. Rul. 2006-30 Section 6621 of the Internal Revenue Code establishes the rates for interest on tax overpayments and tax underpayments. Under section 6621(a)(1), the overpayment rate 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 portion 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 section 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 section 6601 on any large corporate underpayment, the underpayment rate under section 6621(a)(2) is determined by substituting "5 percentage points" for "3 percentage points." See section 6621(c) and section 301.6621-3 of the Regulations on Procedure and Administration for the definition of a large corporate underpayment and for the rules for determining the applicable date. Section 6621(c) and section 301.6621-3 are

generally effective for periods after December 31, 1990.

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Section 6621(b)(1) provides that the Secretary will determine the federal short-term rate for the first month in each calendar quarter. Section 6621(b)(2)(A) provides that the federal short-term rate determined under section 6621(b)(1) for any month applies during the first calendar quarter beginning after such month. 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 section 6621, the Internal Revenue Service will use the federal short-term rate based on daily compounding because that rate is most consistent with section 6621 which, pursuant to section 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 April 2006 is 5 percent. Accordingly, an overpayment rate of 8

percent (7 percent in the case of a corporation) and an underpayment rate of 8 percent are established for the calendar quarter beginning July 1, 2006. The overpayment rate for the

portion of a corporate overpayment exceeding $10,000 for the calendar quarter beginning July 1, 2006, is 5.5 percent. The

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underpayment rate for large corporate underpayments for the calendar quarter beginning July 1, 2006, is 10 percent. These

rates apply to amounts bearing interest during that calendar quarter. Interest factors for daily compound interest for annual rates of 5.5 percent, 7 percent, 8 percent, and 10 percent are published in Tables 16, 19, 21, and 25 of Rev. Proc. 95-17, 19951 C.B. 556, 570, 573, 575, and 579. Annual interest rates to be compounded daily pursuant to section 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 Crystal Foster of the Office of Associate Chief Counsel (Procedure & Administration). For further information regarding this revenue

ruling, contact Ms. Foster at (202) 622-7198 (not a toll-free call).

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TABLE OF INTEREST RATES PERIODS BEFORE JUL. 1, 1975 - PERIODS ENDING DEC. 31, 1986 OVERPAYMENTS AND UNDERPAYMENTS PERIOD Before Jul. 1, 1975 Jul. 1, 1975--Jan. 31, Feb. 1, 1976--Jan. 31, Feb. 1, 1978--Jan. 31, Feb. 1, 1980--Jan. 31, Feb. 1, 1982--Dec. 31, Jan. 1, 1983--Jun. 30, Jul. 1, 1983--Dec. 31, Jan. 1, 1984--Jun. 30, Jul. 1, 1984--Dec. 31, Jan. 1, 1985--Jun. 30, Jul. 1, 1985--Dec. 31, Jan. 1, 1986--Jun. 30, Jul. 1, 1986--Dec. 31, 1976 1978 1980 1982 1982 1983 1983 1984 1984 1985 1985 1986 1986 RATE 6% 9% 7% 6% 12% 20% 16% 11% 11% 11% 13% 11% 10% 9% In 1995-1 C.B. DAILY RATE TABLE Table Table Table Table Table Table Table Table Table Table Table Table Table Table 2, 4, 3, 2, 5, 6, 37, 27, 75, 75, 31, 27, 25 23, pg. pg. pg. pg. pg. pg. pg. pg. pg. pg. pg. pg. pg. pg. 557 559 558 557 560 560 591 581 629 629 585 581 579 577

TABLE OF INTEREST RATES FROM JAN. 1, 1987 - Dec. 31, 1998 OVERPAYMENTS 1995-1 C.B. RATE TABLE PG 8% 21 575 8% 21 575 8% 21 575 9% 23 577 10% 73 627 9% 71 625 9% 71 625 10% 73 627 10% 25 579 11% 27 581 11% 27 581 10% 25 579 10% 25 579 10% 25 579 10% 25 579 10% 25 579 10% 25 579 9% 23 577 9% 23 577 UNDERPAYMENTS 1995-1 C.B. RATE TABLE PG 9% 23 577 9% 23 577 9% 23 577 10% 25 579 11% 75 629 10% 73 627 10% 73 627 11% 75 629 11% 27 581 12% 29 583 12% 29 583 11% 27 581 11% 27 581 11% 27 581 11% 27 581 11% 27 581 11% 27 581 10% 25 579 10% 25 579

Jan. Apr. Jul. Oct. Jan. Apr. Jul. Oct. Jan. Apr. Jul. Oct. Jan. Apr. Jul. Oct. Jan. Apr. Jul.

1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1,

1987--Mar. 1987--Jun. 1987--Sep. 1987--Dec. 1988--Mar. 1988--Jun. 1988--Sep. 1988--Dec. 1989--Mar. 1989--Jun. 1989--Sep. 1989--Dec. 1990--Mar. 1990--Jun. 1990--Sep. 1990--Dec. 1991--Mar. 1991--Jun. 1991--Sep.

31, 30, 30, 31, 31, 30, 30, 31, 31, 30, 30, 31, 31, 30, 30, 31, 31, 30, 30,

1987 1987 1987 1987 1988 1988 1988 1988 1989 1989 1989 1989 1990 1990 1990 1990 1991 1991 1991

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Oct. Jan. Apr. Jul. Oct. Jan. Apr. Jul. Oct. Jan. Apr. Jul. Oct. Jan. Apr. Jul. Oct. Jan. Apr. Jul. Oct. Jan. Apr. Jul. Oct. Jan. Apr. Jul. Oct.

1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1,

1991--Dec. 1992--Mar. 1992--Jun. 1992--Sep. 1992--Dec. 1993--Mar. 1993--Jun. 1993--Sep. 1993--Dec. 1994--Mar. 1994--Jun. 1994--Sep. 1994--Dec. 1995--Mar. 1995--Jun. 1995--Sep. 1995--Dec. 1996--Mar. 1996--Jun. 1996--Sep. 1996--Dec. 1997--Mar. 1997--Jun. 1997--Sep. 1997--Dec. 1998--Mar. 1998--Jun. 1998--Sep. 1998--Dec.

31, 31, 30, 30, 31, 31, 30, 30, 31, 31, 30, 30, 31, 31, 30, 30, 31, 31, 30, 30, 31, 31, 30, 30, 31, 31, 30, 30, 31,

1991 1992 1992 1992 1992 1993 1993 1993 1993 1994 1994 1994 1994 1995 1995 1995 1995 1996 1996 1996 1996 1997 1997 1997 1997 1998 1998 1998 1998

9% 8% 7% 7% 6% 6% 6% 6% 6% 6% 6% 7% 8% 8% 9% 8% 8% 8% 7% 8% 8% 8% 8% 8% 8% 8% 7% 7% 7%

23 69 67 67 65 17 17 17 17 17 17 19 21 21 23 21 21 69 67 69 69 21 21 21 21 21 19 19 19

577 623 621 621 619 571 571 571 571 571 571 573 575 575 577 575 575 623 621 623 623 575 575 575 575 575 573 573 573

10% 9% 8% 8% 7% 7% 7% 7% 7% 7% 7% 8% 9% 9% 10% 9% 9% 9% 8% 9% 9% 9% 9% 9% 9% 9% 8% 8% 8%

25 71 69 69 67 19 19 19 19 19 19 21 23 23 25 23 23 71 69 71 71 23 23 23 23 23 21 21 21

579 625 623 623 621 573 573 573 573 573 573 575 577 577 579 577 577 625 623 625 625 577 577 577 577 577 575 575 575

TABLE OF INTEREST RATES FROM JANUARY 1, 1999 - PRESENT NONCORPORATE OVERPAYMENTS AND UNDERPAYMENTS RATE 7% 8% 8% 8% 8% 9% 9% 1995-1 C.B. TABLE 19 21 21 21 69 71 71 PAGE 573 575 575 575 623 625 625

Jan. Apr. Jul. Oct. Jan. Apr. Jul.

1, 1, 1, 1, 1, 1, 1,

1999--Mar. 1999--Jun. 1999--Sep. 1999--Dec. 2000--Mar. 2000--Jun. 2000--Sep.

31, 30, 30, 31, 31, 30, 30,

1999 1999 1999 1999 2000 2000 2000

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Oct. Jan. Apr. Jul. Oct. Jan. Apr. Jul. Oct. Jan. Apr. Jul. Oct. Jan. Apr. Jul. Oct. Jan. Apr. Jul. Oct. Jan. Apr. Jul.

1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1,

2000--Dec 2001--Mar. 2001--Jun. 2001--Sep. 2001--Dec. 2002--Mar. 2002--Jun. 2002--Sep. 2002--Dec. 2003--Mar. 2003--Jun. 2003--Sep. 2003--Dec. 2004---Mar. 2004---Jun. 2004---Sep. 2004--Dec. 2005---Mar. 2005---Jun. 2005---Sep. 2005--Dec. 2006--Mar. 2006---Jun. 2006---Sep.

31, 31, 30, 30, 31, 31, 30, 30, 31, 31, 30, 30, 31, 31, 30, 30, 31, 31, 30, 30, 31, 31, 30, 30,

2000 2001 2001 2001 2001 2002 2002 2002 2002 2003 2003 2003 2003 2004 2004 2004 2004 2005 2005 2005 2005 2006 2006 2006

9% 9% 8% 7% 7% 6% 6% 6% 6% 5% 5% 5% 4% 4% 5% 4% 5% 5% 6% 6% 7% 7% 7% 8%

71 23 21 19 19 17 17 17 17 15 15 15 13 61 63 61 63 15 17 17 19 19 19 21

625 577 575 573 573 571 571 571 571 569 569 569 567 615 617 615 617 569 571 571 573 573 573 575

TABLE OF INTEREST RATES FROM JANUARY 1, 1999 - PRESENT CORPORATE OVERPAYMENTS AND UNDERPAYMENTS

OVERPAYMENTS UNDERPAYMENTS _____________________________ 1995-1 C.B. RATE Jan. Apr. Jul. Oct. Jan. Apr. 1, 1, 1, 1, 1, 1, 1999--Mar. 1999--Jun. 1999--Sep. 1999--Dec. 2000--Mar. 2000--Jun. 31, 30, 30, 31, 31, 30, 1999 1999 1999 1999 2000 2000 6% 7% 7% 7% 7% 8% TABLE 17 19 19 19 67 69 1995-1 C.B. TABLE 19 21 21 21 69 71 PG 573 575 575 575 623 625

PG RATE 571 573 573 573 621 623 7% 8% 8% 8% 8% 9%

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Jul. Oct. Jan. Apr. Jul. Oct. Jan. Apr. Jul. Oct. Jan. Apr. Jul. Oct. Jan. Apr. Jul. Oct. Jan. Apr. Jul. Oct. Jan. Apr. Jul.

1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1,

2000--Sep. 2000--Dec. 2001--Mar. 2001--Jun. 2001--Sep. 2001--Dec. 2002--Mar. 2002--Jun. 2002--Sep. 2002--Dec. 2003--Mar. 2003--Jun. 2003--Sep. 2003--Dec. 2004---Mar. 2004---Jun. 2004---Sep. 2004--Dec. 2005---Mar. 2005---Jun. 2005---Sep. 2005--Dec. 2006--Mar. 2006---Jun. 2006---Sep.

30, 31, 31, 30, 30, 31, 31, 30, 30, 31, 31, 30, 30, 31, 31, 30, 30, 31, 31, 30, 30, 31, 31, 30, 30,

2000 2000 2001 2001 2001 2001 2002 2002 2002 2002 2003 2003 2003 2003 2004 2004 2004 2004 2005 2005 2005 2005 2006 2006 2006

8% 8% 8% 7% 6% 6% 5% 5% 5% 5% 4% 4% 4% 3% 3% 4% 3% 4% 4% 5% 5% 6% 6% 6% 7%

69 69 21 19 17 17 15 15 15 15 13 13 13 11 59 61 59 61 13 15 15 17 17 17 19

623 623 575 573 571 571 569 569 569 569 567 567 567 565 613 615 613 615 567 569 569 571 571 571 573

9% 9% 9% 8% 7% 7% 6% 6% 6% 6% 5% 5% 5% 4% 4% 5% 4% 5% 5% 6% 6% 7% 7% 7% 8%

71 71 23 21 19 19 17 17 17 17 15 15 15 13 61 63 61 63 15 17 17 19 19 19 21

625 625 577 575 573 573 571 571 571 571 569 569 569 567 615 617 615 617 569 571 571 573 573 573 575

TABLE OF INTEREST RATES FOR LARGE CORPORATE UNDERPAYMENTS FROM JANUARY 1, 1991 - PRESENT

1995-1 C.B. RATE TABLE Jan. Apr. Jul. Oct. Jan. Apr. Jul. Oct. Jan. Apr. Jul. Oct. Jan. Apr. Jul. Oct. Jan. Apr. 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1991--Mar. 1991--Jun. 1991--Sep. 1991--Dec. 1992--Mar. 1992--Jun. 1992--Sep. 1992--Dec. 1993--Mar. 1993--Jun. 1993--Sep. 1993--Dec. 1994--Mar. 1994--Jun. 1994--Sep. 1994--Dec. 1995--Mar. 1995--Jun. 31, 30, 30, 31, 31, 30, 30, 31, 31, 30, 30, 31, 31, 30, 30, 31, 31, 30, 1991 1991 1991 1991 1992 1992 1992 1992 1993 1993 1993 1993 1994 1994 1994 1994 1995 1995 13% 12% 12% 12% 11% 10% 10% 9% 9% 9% 9% 9% 9% 9% 10% 11% 11% 12% 31 29 29 29 75 73 73 71 23 23 23 23 23 23 25 27 27 29

PG 585 583 583 583 629 627 627 625 577 577 577 577 577 577 579 581 581 583

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Jul. Oct. Jan. Apr. Jul. Oct. Jan. Apr. Jul. Oct. Jan. Apr. Jul. Oct. Jan. Apr. Jul. Oct. Jan. Apr. Jul. Oct. Jan. Apr. Jul. Oct. Jan. Apr. Jul. Oct. Jan. Apr. Jul. Oct. Jan. Apr. Jul. Oct. Jan. Apr. Jul. Oct. Jan. Apr. Jul.

1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1,

1995--Sep. 1995--Dec. 1996--Mar. 1996--Jun. 1996--Sep. 1996--Dec. 1997--Mar. 1997--Jun. 1997--Sep. 1997--Dec. 1998--Mar. 1998--Jun. 1998--Sep. 1998--Dec. 1999--Mar. 1999--Jun. 1999--Sep. 1999--Dec. 2000--Mar. 2000--Jun. 2000--Sep. 2000--Dec. 2001--Mar. 2001--Jun. 2001--Sep. 2001--Dec. 2002--Mar. 2002--Jun. 2002--Sep. 2002--Dec. 2003--Mar. 2003--Jun. 2003--Sep. 2003--Dec. 2004---Mar. 2004---Jun. 2004---Sep. 2004--Dec. 2005---Mar. 2005---Jun. 2005---Sep. 2005--Dec. 2006--Mar. 2006---Jun. 2006---Sep.

30, 31, 31, 30, 30, 31, 31, 30, 30, 31, 31, 30, 30, 31, 31, 30, 30, 31, 31, 30, 30, 31, 31, 30, 30, 31, 31, 30, 30, 30, 31, 30, 30, 31, 31, 30, 30, 31, 31, 30, 30, 31, 31, 30, 30,

1995 1995 1996 1996 1996 1996 1997 1997 1997 1997 1998 1998 1998 1998 1999 1999 1999 1999 2000 2000 2000 2000 2001 2001 2001 2001 2002 2002 2002 2002 2003 2003 2003 2003 2004 2004 2004 2004 2005 2005 2005 2005 2006 2006 2006

11% 11% 11% 10% 11% 11% 11% 11% 11% 11% 11% 10% 10% 10% 9% 10% 10% 10% 10% 11% 11% 11% 11% 10% 9% 9% 8% 8% 8% 8% 7% 7% 7% 6% 6% 7% 6% 7% 7% 8% 8% 9% 9% 9% 10%

27 27 75 73 75 75 27 27 27 27 27 25 25 25 23 25 25 25 73 75 75 75 27 25 23 23 21 21 21 21 19 19 19 17 65 67 65 67 19 21 21 23 23 23 25

581 581 629 627 629 629 581 581 581 581 581 579 579 579 577 579 579 579 627 629 629 629 581 579 577 577 575 575 575 575 573 573 573 571 619 621 619 621 573 575 575 577 577 577 579

TABLE OF INTEREST RATES FOR CORPORATE OVERPAYMENTS EXCEEDING $10,000 FROM JANUARY 1, 1995 ­ PRESENT 1995-1 C.B.

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RATE Jan. Apr. Jul. Oct. Jan. Apr. Jul. Oct. Jan. Apr. Jul. Oct. Jan. Apr. Jul. Oct. Jan. Apr. Jul. Oct. Jan. Apr. Jul. Oct. Jan. Apr. Jul. Oct. Jan. Apr. Jul. Oct. Jan. Apr. Jul. Oct. Jan. Apr. Jul. Oct. Jan. Apr. Jul. Oct. Jan. Apr. Jul. 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1. 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1995--Mar. 1995--Jun. 1995--Sep. 1995--Dec. 1996--Mar. 1996--Jun. 1996--Sep. 1996--Dec. 1997--Mar. 1997--Jun. 1997--Sep. 1997--Dec. 1998--Mar. 1998--Jun. 1998--Sep. 1998--Dec. 1999--Mar. 1999--Jun. 1999--Sep. 1999--Dec. 2000--Mar. 2000--Jun. 2000--Sep. 2000--Dec. 2001--Mar. 2001--Jun. 2001--Sep. 2001--Dec. 2002--Mar. 2002--Jun. 2002--Sep. 2002--Dec. 2003--Mar. 2003--Jun. 2003--Sep. 2003--Dec. 2004---Mar. 2004---Jun. 2004---Sep. 2004--Dec. 2005---Mar. 2005---Jun. 2005---Sep. 2005--Dec. 2006--Mar. 2006---Jun. 2006---Sep. 31, 30, 30, 31, 31, 30, 30, 31, 31, 30, 30, 31, 31, 30, 30, 31, 31, 30, 30, 31, 31, 30, 30, 31, 31, 30, 30, 31, 31, 30, 30, 31, 31, 30, 30, 31, 31, 30, 30, 31, 31, 30, 30, 31, 31, 30, 30, 1995 1995 1995 1995 1996 1996 1996 1996 1997 1997 1997 1997 1998 1998 1998 1998 1999 1999 1999 1999 2000 2000 2000 2000 2001 2001 2001 2001 2002 2002 2002 2002 2003 2003 2003 2003 2004 2004 2004 2004 2005 2005 2005 2005 2006 2006 2006 6.5% 7.5% 6.5% 6.5% 6.5% 5.5% 6.5% 6.5% 6.5% 6.5% 6.5% 6.5% 6.5% 5.5% 5.5% 5.5% 4.5% 5.5% 5.5% 5.5% 5.5% 6.5% 6.5% 6.5% 6.5% 5.5% 4.5% 4.5% 3.5% 3.5% 3.5% 3.5% 2.5% 2.5% 2.5% 1.5% 1.5% 2.5% 1.5% 2.5% 2.5% 3.5% 3.5% 4.5% 4.5% 4.5% 5.5%

TABLE 18 20 18 18 66 64 66 66 18 18 18 18 18 16 16 16 14 16 16 16 64 66 66 66 18 16 14 14 12 12 12 12 10 10 10 8562 56610 58 56 58612 10 12 12 14 14 14 16

PG 572 574 572 572 620 618 620 620 572 572 572 572 572 570 570 570 568 570 570 570 618 620 620 620 572 570 568 568 566 566 566 566 564 564 564 612 610 564 566 566 568 568 568 570