Title 26, Internal Revenue CodeRelease 119-110
§6622 Interest Compounded Daily
Title 26 › Subtitle F — Procedure and Administration › CHAPTER 67 — INTEREST › Subchapter C — Determination of Interest Rate; Compounding of Interest › § 6622
Summary
When you figure interest the IRS or a taxpayer must pay under the tax laws or under sections 1961(c)(1) or 2411 of Title 28, count the interest so it compounds every day. Any other amount that is worked out based on that interest must also use daily compounding. Do not use daily compounding when computing the addition to tax for failing to pay estimated tax under section 6654 or 6655.
Full Legal Text
Title 26, §6622
Internal Revenue Code, Source: USLM XML via OLRC
(a)General rule
In computing the amount of any interest required to be paid under this title or section 1961(c)(1) or 2411 of title 28, United States Code, by the Secretary or by the taxpayer, or any other amount determined by reference to such amount of interest, such interest and such amount shall be compounded daily.
(b)Exception for penalty for failure to file estimated tax
Subsection (a) shall not apply for purposes of computing the amount of any addition to tax under section 6654 or 6655.
Legislative History
Notes & Related Subsidiaries
Statutory Notes and Related Subsidiaries
Effective Date
Pub. L. 97–248, title III, § 344(c), Sept. 3, 1982, 96 Stat. 636, provided that: “The
Amendments
made by this section [enacting this section and amending section 6601 of this title] shall apply to interest accruing after December 31, 1982.”
Reference
Citations & Metadata
Citation
26 U.S.C. § 6622
Title 26, Internal Revenue Code
Last Updated
Sep 22, 2026
Release point: 119-110