Tax Type
General Provisions
Description
Interest Rates; Fourth Quarter 1997
Topic
Rate of Tax
Date Issued
09-23-1997
Virginia Department of Taxation
September 23, 1997 97-4
INTEREST RATES
FOURTH QUARTER 1997
FOURTH QUARTER 1997
Rates remain unchanged: State and certain local interest rates are subject to change every quarter based on changes in federal rates established pursuant to I.R.C. § 6621. The federal rates for the fourth quarter of 1997 remain at 9% for tax underpayments (assessments), 8% for tax overpayments (refunds), and 11% for "large corporate underpayments" as defined in I.R.C. § 6621(c). Code of Virginia § 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 1997 remain at 11% for tax underpayments, 8% for tax overpayments, and 13% for "large corporate underpayments."
Rate for Addition to Tax for Underpayments of Estimated Tax
Taxpayers whose taxable year ends on December 31, 1997: 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) or Form 500C (for corporations), the fourth quarter of 1997 11% underpayment rate will apply through the due date of the return, January 15, 1998.
Local Tax
Assessments: Localities assessing interest on delinquent taxes pursuant to Code of Virginia §58.1-3916 may impose interest at a rate not to exceed l0% 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 fourth quarter of 1997, the federal underpayment rate is 9 %.
Refunds: Localities which have provided for refunds of erroneously assessed taxes may provide by ordinance that such refunds are repaid with interest at a rate which does not exceed the rate imposed by the locality for delinquent taxes.
BPOL Refunds: Effective January 1, 1997, interest on any refund will be paid at the same rate as assessments under Code of Virginia § 58.1-3916.
Recent Interest Rates
Accrual Period Overpayment Underpayment Large Corporate
Beginning Through (Refund) (Assessment) Underpayment
1-Jan-87 30-Sep-87 8% 9% ----
1-Oct-87 31-Dec-87 9% 10% ----
1-Jan-88 31-Mar-88 10% 11% ----
1-Apr-88 30-Sep-88 9% 10% ----
1-Oct-88 31-Mar-89 10% 11% ----
1-Apr-89 30-Sep-89 11% 12% ----
1-Oct-89 31-Mar-91 10% 11% ----
1-Apr-91 30-Jun-91 9% 10% ----
1-Jul-91 31-Dec-91 9% 12% 14%
1-Jan-92 31-Mar-92 8% 11% 13%
1-Apr-92 30-Sep92 7% 10% 12%
1-0ct-92 30-Jun-94 6% 9% 11%
1-Jul-94 30-Sep-94 7% 10% 12%
1-0ct-94 31-Mar-95 8% 11% 13%
1-Apr-95 30-Jun-95 9% 12% 14%
1-Jul-95 31-Mar-96 8% 11% 13%
1-Apr-96 30-Jun-96 7% 10% 12%
1-Jul-96 31-Dec-97 8% 11% 13%
For additional Information: Contact the Customer Services Section, Virginia Department of Taxation, P. O. Box 1115, Richmond, Virginia 23218-1115, or call the following numbers for additional information about interest rates and penalties.
Individual & Fiduciary Income Tax (804) 367-8031
Corporation Income Tax (804) 367-8037
Withholding Tax (804) 367-8037
Soft Drink Excise Tax (804) 367-8098
Aircraft Sales & Use Tax (804) 367-8098
Other Sales & Use Taxes (804) 367-8037
Rulings of the Tax Commissioner