Treasury Regulations · 26 CFR

§ 301.6622-1. Interest compounded daily.

In effect eCFR current as of October 15, 2026

Regulation text, no changes From the eCFR, current as of October 15, 2026. The eCFR is an authoritative but unofficial editorial compilation of the Code of Federal Regulations; the official text is the annual CFR on govinfo. Compare it with this section on ecfr.gov (external site) or the official annual CFR on govinfo (external site).

Regulation under 26 U.S.C. § 6622

Cite as 26 CFR § 301.6622-1

At a glance

Read from the text and its source citation. Not part of the regulation.

Status: In the current eCFR
Issued: August 23, 1983 by T.D. 7907
Issued under: 26 U.S.C. § 6622
Length: 370 words · about 2 min to read
Cross-references: cites 2 Code sections and 0 regulations; cited by 2

¶(a) General rule. Effective for interest accruing after December 31, 1982, in computing the amount of any interest required to be paid under the Internal Revenue Code of 1954 or sections 1961(c)(1) or 2411 of title 28, United States Code, by the Commissioner or by the taxpayer, or in computing any other amount determined by reference to such amount of interest, or by reference to the interest rate established under section 6621, such interest or such other amount shall be compounded daily by dividing such rate of interest by 365 (366 in a leap year) and compounding such daily interest rate each day.

¶(b) Exception. Paragraph (a) of this section shall not apply for purposes of determining the amount of any addition to tax under sections 6654 or 6655 (relating to failure to pay estimated income tax).

¶(c) Applicability to unpaid amounts on December 31, 1982—

¶(1) In general. The unpaid interest (or other amount) that shall be compounded daily includes the interest (or other amount) accrued but unpaid on December 31, 1982.

¶(2) Illustration. The provisions of this (c) may be illustrated by the following example.

¶Example.

Individual A files a tax return for calendar year 1981 on April 15, 1982, showing a tax due of $10,000. A pays $10,000 on December 31, 1982, but A does not pay any interest with respect to this underpayment until March 1, 1983, on which date A paid all amounts of interest with respect to the $10,000 underpayment of tax. On December 31, 1982, A's unsatisfied interest liability was $1,424.66 ($10,000 × 20 percent × 260/365 days). Interest, compounded daily, accrues on this unsatisfied interest obligation beginning on January 1, 1983, until March 1, 1983, the date the total interest obligation is satisfied. On March 1, 1983, the total interest obligation is $1,462.62, computed as follows:

Item	Amount
Unpaid tax at December 31, 1982	0
Unpaid interest at December 31, 1982	$1,424.66
Total unsatisfied obligation at December 31, 1982	1,424.66
Interest from December 31, 1982, to March 1, 1983, at 16 percent per year compounded daily	37.96
Total due, March 1, 1983	1,462.62

[T.D. 7907, 48 FR 38231, Aug. 23, 1983]

Cross-references

Computed from the citations in the text of 26 CFR.

Code sections it cites

Cited by 2 other regulations

Amendment history

From the source citation at the end of the section, newest first. T.D. is a Treasury decision; FR is the Federal Register.

August 23, 1983Issued by T.D. 7907 (48 FR 38231)

Where it sits in 26 CFR

Subchapter F Procedure and administration
Part 301 Procedure and administration
Subpart ECFR612dc3cd920dcce Interest
Interest on Underpayments