Tax Type
Individual Income Tax
Description
Interest on late payment of tax; Adjustments to FAGI by I.R.S.
Topic
Collection of Delinquent Tax,
Penalties and Interest
Date Issued
10-29-1992
October 29, 1992
Re: §58.1-1821 Application: Individual Income Tax
Dear******************
This will reply to your letter of September 13, 1991 in which you seek abatement of interest imposed upon your late payment of a portion of your individual income tax liability for taxable year 1988.
FACTS
In preparing your 1988 Virginia individual income tax return you carried over the wrong amount from your federal return. The error resulted in you understating your 1988 tax liability. In 1991 the department issued you an assessment for the tax deficiency plus accrued interest on the unpaid balance.
You have requested relief from having to pay the interest portion of the assessment.
DETERMINATION
Va. Code §58.1-351 mandates that interest be imposed upon the unpaid balance of taxes owed to the department until paid. You had mistakenly underpaid your 1988 tax liability amount. Although the error was unintentional, the imposition of interest is mandatory. There is no basis upon with I can justify waiving the interest portion of the assessment.
Your request is, therefore, denied.
Sincerely,
W. H. Forst
Tax Commissioner
OTP/5606O
Rulings of the Tax Commissioner