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Revenue Administrative Bulletin 1989-68
Revenue Administrative Bulletin 1989-68
DEFICIENCY INTEREST RATE
For period January 1, 1990 through June 30, 1990
(Replaces Revenue Administrative Bulletin 1989-33)
Approved: October 6, 1989
RAB-89-68. This Bulletin establishes the annual rate of interest due on a deficiency for the period beginning on January 1, 1990 and ending on June 30, 1990.
A daily rate of interest of .0003288 based on an adjusted annual rate of 12.0% shall be added to a tax deficiency or an excessive claim for the period stated above. The effective annual rate of 12.0% was established pursuant to Section 23(2) of Act No. 58, P.A. of 1986, at one percentage point above the adjusted prime rate charged by three commercial banks to large businesses.
The following annual and corresponding daily rates of interest are in effect and will accrue on any deficiency due during these periods:
|
Period |
Rate |
|
October 1, 1967 – June 30, 1986 |
9.0% (.0002466) |
|
July 1, 1986 – December 31, 1986 |
10.4% (.0002849) |
|
January 1, 1987 – June 30, 1987 |
9.2% (.0002521) |
|
July 1, 1987 – December 31, 1987 |
8.5% (.0002329) |
|
January 1, 1988 – June 30, 1988 |
9.2% (.0002514) |
|
July 1, 1988 – December 31, 1988 |
9.7% (.0002650) |
|
January 1, 1989 – June 30, 1989 |
10.2% (.0002795) |
|
July 1, 1989 – December 31, 1989 |
11.6% (.0003288) |
|
January 1, 1990 – June 30, 1990 |
12.0% (.0003288) |
Example: Taxpayer A, who is on a calendar year basis, filed an MI-1040 return for 1986 showing tax due of $2,000.00 If the tax is not paid until May 15, 1990, the amount of interest calculated due from April 16, 1987 through May 15, 1990 is as follows:
|
Period |
Calculation |
Interest |
|
April 16, 1987 – June 30, 1987 |
75 days x 0.0002521 x $2,000 |
$37.82 |
|
July 1, 1987 – December 31, 1987 |
184 days x 0.0002329 x $2,000 |
$85.71 |
|
January 1, 1988 – June 30, 1988 |
182 days x 0.0002514 x $2,000 |
$91.51 |
|
July 1, 1988 – December 31, 1988 |
184 days x 0.0002650 x $2,000 |
$97.52 |
|
January 1, 1989 – June 30, 1989 |
181 days x 0.0003178 x $2,000 |
$101.18 |
|
July 1, 1989 – December 31, 1989 |
184 days x 0.0003178 x $2,000 |
$116.95 |
|
January 1, 1990 – May 15, 1990 |
135 days x 0.0003288 x $2,000 |
$88.78 |
Total Interest Due is $619.47.