DEPARTMENT OF REVENUE
Interest Rate Notice
[49 Pa.B. 7631]
[Saturday, December 28, 2019]
Under sections 806 and 806.1 of The Fiscal Code (72 P.S. §§ 806 and 806.1), the Secretary of Revenue announces that, for the calendar year beginning January 1, 2020, all underpayments of tax which became due and payable to the Commonwealth shall bear interest at the rate of 5% per annum. All overpayments of the tax paid during this calendar year under Article III of the Tax Reform Code of 1971 (72 P.S. §§ 7301—7361) shall bear interest at the rate of 5% per annum. All other overpayments of tax paid during this calendar year shall bear interest at the rate of 3% per annum. These rates will remain constant until December 31, 2020. These rates will be codified under 61 Pa. Code § 4.2(a) (relating to rate of interest).
These rates have been established based upon the rate established by the Secretary of the Treasury of the United States under section 6621(a)(2) of the Internal Revenue Code (26 U.S.C.A. § 6621(a)(2)) to be effective January 1, 2020.
Although the Tax Reform Act of 1986 amended section 6621 of the Internal Revenue Code by requiring that the Secretary of the Treasury of the United States establish quarterly rates of interest to become effective for Federal purposes on the first month of each calendar quarter, these amendments do not affect Commonwealth law. The Fiscal Code, as previously cited, requires that the interest rate be established effective January 1 of each calendar year without regard to any change in the Federal interest rate during the calendar year.
C. DANIEL HASSELL,
[Pa.B. Doc. No. 19-1949. Filed for public inspection December 27, 2019, 9:00 a.m.]
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