[Code of Federal Regulations]
[Title 27, Volume 1]
[Revised as of April 1, 2005]
From the U.S. Government Printing Office via GPO Access
[CITE: 27CFR70.90]

[Page 1060-1061]
 
            TITLE 27--ALCOHOL, TOBACCO PRODUCTS AND FIREARMS
 
 CHAPTER I--ALCOHOL AND TOBACCO TAX AND TRADE BUREAU, DEPARTMENT OF THE 
                                TREASURY
 
PART 70_PROCEDURE AND ADMINISTRATION--Table of Contents
 
      Subpart D_Collection of Excise and Special (Occupational) Tax
 
Sec. 70.90  Interest on underpayments.

    (a) General rule. Interest at the underpayment rate referred to in 
Sec. 70.93 of this part shall be paid on any unpaid amount of tax from 
the last date prescribed for payment of the tax (determined without 
regard to any extension of time for payment) to the date on which 
payment is received.
    (b) Interest on penalties, additional amounts, or additions to the 
tax-- (1) General. Interest shall be imposed on any assessable penalty, 
additional amount, or addition to the tax (other than an addition to tax 
imposed under section 6651(a)(1) of the Internal Revenue Code) only if 
such assessable penalty, additional amount, or addition to the tax is 
not paid within 10 days from the date of notice and demand therefor, and 
in such case interest shall be imposed only for the period from the date 
of the notice and demand to the date of payment.
    (2) Interest on certain additions to tax. Interest shall be imposed 
under this section on any addition to tax imposed by section 6651(a)(1) 
of the Internal Revenue Code for the period which (i) begins on the date 
on which the return of the tax with respect to which such addition to 
tax is imposed is required to be filed (including any extensions), and 
(ii) ends on the date of payment of such addition to tax.
    (c) Payments made within 10 days after notice and demand. If notice 
and demand is made for payment of any amount, and if such amount is paid 
within 10 days after the date of such notice and demand, interest under 
this section on the amount so paid shall not be imposed for the period 
after the date of such notice and demand.
    (d) Satisfaction by credits. If any portion of a tax is satisfied by 
credit of an overpayment, then no interest shall be imposed under 
section 6601 of the Internal Revenue Code on the portion of the tax so 
satisfied for any period during which, if the credit had not been made, 
interest would have been allowable with respect to such overpayment.
    (e) Last date prescribed for payment. (1) In determining the last 
date prescribed for payment, any extension of time

[[Page 1061]]

granted for payment of tax shall be disregarded. The granting of an 
extension of time for the payment of tax does not relieve the taxpayer 
from liability for the payment of interest thereon during the period of 
the extension. Thus, except as provided in paragraph (d) of this 
section, interest at the underpayment rate referred to in Sec. 70.93 of 
this part is payable on any unpaid portion of the tax for the period 
during which such portion remains unpaid by reason of an extension of 
time for the payment thereof.
    (2) In the case of taxes payable by stamp and in all other cases 
where the last date for payment of the tax is not otherwise prescribed, 
such last date for the purpose of the interest computation shall be 
deemed to be the date on which the liability for the tax arose. However, 
such last date shall in no event be later than the date of issuance of a 
notice and demand for the tax.

(26 U.S.C. 6601)

[T.D. ATF-251, 52 FR 19314, May 22, 1987, as amended by T.D. ATF-301, 55 
FR 47613, Nov. 14, 1990]