Tax Type
Estate Tax
General Provisions
Description
Interest calculation when both refund and tax liability exists
Topic
Penalties and Interest
Date Issued
03-27-1987
March 27, 1987
Re: §58.1-1821 Application; Estate Tax
§58.1-1812 Interest on outstanding tax
Dear **********************
In response to your letter of December 3, 1986, I have reviewed the interest computation discussed in my previous letter of November 19, 1986.
As I stated in my letter of November 19, 1986, each assessment and each refund is a separate transaction and interest is computed differently for each. The interest computations required by both the refund section (§58.1-1833) and the assessment and billing section (§58.1-1812) allow periods during which interest is not charged. Interest on a refund is computed on the amount of the refund from 60 days after the date of payment to a date within 30 days of the date the check is issued. Interest on additional tax is computed on the balance outstanding from the due date to the date of assessment but the assessment may be paid within 30 days of billing without additional interest. The account history of payments and refunds affects the balance of tax outstanding but does not otherwise affect the computation of interest on assessments.
Accordingly I reaffirm the conclusion in my letter of November 19, 1986, that the assessment of interest is correct. The assessment is now due and payable.
Sincerely,
W. H. Forst
Tax Commissioner
Related Documents
Rulings of the Tax Commissioner