Tax Type
General Provisions
Description
INTEREST RATES Fourth QUARTER 1991
Topic
Rate of Tax
Date Issued
09-17-1991
91-8
INTEREST RATES
Fourth QUARTER 1991
Fourth QUARTER 1991
Interest Rates
Rates Unchanged: State and certain local interest rates are subject to change every quarter based on changes in the federal rates established pursuant to I.R.C. 6621. The federal rates for the fourth quarter remain at 9% for overpayments, 10% for underpayments, and 12% for "large corporate underpayments" as defined in I.R.C. 6621(c). Va. Code 58.1-15 provides that the underpayment rate for Virginia taxes will be 2% higher than the corresponding federal rates. Accordingly, the Virginia rates for the fourth quarter of 1991 remain at 9% for tax overpayments (refunds), 12% for tax underpayments (assessments), and 14% on assessments of corporation income tax that exceed $100,000 for a single tax year and that have not been paid within 30 days of the date of assessment.
Rate for Addition to Tax for Underpayments of Estimated Tax
Taxpayers whose taxable year ends on September 30, 1991: For the purpose of computing the addition to the tax for underpayment of Virginia estimated income taxes on Form 760C (for individuals, estates, and trusts), Form 760F (for farmers and fishermen), of Form 500C (for corporations), the fourth quarter 12% underpayment rate will apply through the due date of the return, January 15, 1992.
Local Tax
Assessments: Localities assessing interest on delinquent taxes pursuant to Va. Code section 58.1-3916 may impose interest at a rate not to exceed 10% for the first year of delinquency, and at a rate not to exceed 10% or the federal underpayment rate in effect for the applicable quarter, whichever is greater, for the second and subsequent years of delinquency. For the third quarter of 1991, the federal underpayment rate is 10%.
Refunds: Localities which have provided for refund of erroneously assessed taxes may provide by ordinance that such refund be repaid with interest at a rate which does not exceed the rate imposed by the locality for delinquent taxes.
For Additional Information
Contact the Taxpayer Assistance Section, Office Services Division, Virginia Department of Taxation, P.O. Box 6-L, Richmond, Virginia 23282, or call the following numbers for additional information about interest rates and penalties.
Individual & Fiduciary Income Tax (804) 367-8031
Corporation Income Tax (804) 367-8036
Withholding Tax (804) 367-8038
Soft Drink Excise Tax (804) 367-8016
Aircraft Sales & Use Tax (804) 367-8098
Other Sales & Use Taxes (804) 367-8037
Rulings of the Tax Commissioner