IRC 6621 rate for late deposits

[Bird]

Somebody please tell me I'm missing something...

The DOL/EBSA faqs on the VFCP, found here:

http://www.dol.gov/ebsa/faqs/faq_vfcp2.html

give an example where deferrals for the first week of June 2000 were not deposited until October 2000. They say that the correct rate, the federal underpayment rate under 6621, is 8%.

Yet, when I go to the most recent chart of rates, here:

http://www.irs.gov/pub/irs-drop/rr-05-15.pdf

it looks to me like the rate should be 9%.

Am I misreading the table or did they pick up the wrong rate?

[austin3515]

a) perhaps in the example they made up a rate, or

b) Make sure your looking at the corporate underpayments. I think your link is to the wrong item, but I know that there are several diffeent tables in the notices.

[Bird]

Well...

I couldn't find anywhere that they specified if we're to use the corporate or non-corporate rate, but I couldn't find that exact rate in either place.

I double-checked the link and it brought me to the latest notice; the tables are a ways down.

I guess they could have meant "...assume that the rate was 8%..."

Anyway, thanks for the feedback.