Bulletin Number
VTB 01-2
Tax Type
General Provisions
Description
Interest Rates; Second Quarter 2001
Topic
Basis of Tax
Date Issued
03-26-2001
INTEREST RATES
SECOND QUARTER 2001
Federal rates change: State and certain local interest rates are subject to change every quarter based on changes in federal rates established pursuant to IRC §6621. The federal rates for the second quarter of 2001 will be 8% for tax underpayments (assessments), 8% for tax overpayments (refunds) by taxpayers other than corporations, and 10% for “large corporate underpayments” as defined in IRC § 6621(c). Code of Virginia § 58.1-15 provides that the underpayment rates for Virginia taxes will be 2% higher than the corresponding federal rates and overpayment rates for Virginia taxes will be 2% higher than the federal rate for noncorporate taxpayers. Accordingly, the Virginia rates for the second quarter of 2001 will be 10% for tax underpayments (assessments), 10% for tax overpayments (refunds), and 12% for “large corporate underpayments.”
Rate for Addition to Tax for Underpayments of Estimated Tax
Taxpayers whose taxable year ends on March 31, 2001: 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 on Form 500C (for corporations), the second quarter 10% underpayment rate will apply through the due date of the return, July 16, 2001, (for corporations), and August 1, 2001, (for individuals and fiduciaries).
Taxpayers whose taxable year ends on December 31, 2000: 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 on Form 500C (for corporations), the first quarter 11% underpayment rate will apply through the due date of the return, April 16, 2001, (for corporations), and May 1, 2001, (for individuals and fiduciaries).
Local Tax
Assessments: Localities that assess interest on delinquent taxes under Code of Virginia § 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 second quarter of 2001, the federal underpayment rate is 8%.
Refunds: Effective July 1, 1999, localities which charge interest on delinquent taxes are required paying interest to taxpayers on all overpayments or erroneously assessed taxes at the same rate as they charge interest on delinquent taxes under Code of Virginia § 58.1-3916.
Recent Interest Rates
Accrual | Period | Non -Corporation Overpayment | Corporation Overpayment | Underpayment | Large Corporate |
Beginning | Through | (Refund) | (Refund) | (Assessment) | Underpayment |
1-Apr-91 | 30-Jun-91 | 9% | 9% | 10% | ---- |
1-Jul-91 | 31-Dec-91 | 9% | 9% | 12% | 14% |
1-Jan-92 | 31-Mar-92 | 8% | 8% | 11% | 13% |
1-Apr-92 | 30-Sep-92 | 7% | 7% | 10% | 12% |
1-Oct-92 | 30-Jun-94 | 6% | 6% | 9% | 11% |
1-Jul-94 | 30-Sep-94 | 7% | 7% | 10% | 12% |
1-Oct-94 | 31-Mar-95 | 8% | 8% | 11% | 13% |
1-Apr-95 | 30-Jun-95 | 9% | 9% | 12% | 14% |
1-Jul-95 | 31-Mar-96 | 8% | 8% | 11% | 13% |
1-Apr-96 | 30-Jun-96 | 7% | 7% | 10% | 12% |
1-Jul-96 | 31-Mar-98 | 8% | 8% | 11% | 13% |
1-Apr-98 | 31-Dec-98 | 7% | 7% | 10% | 12% |
1-Jan-99 | 31-Mar-99 | 7% | 6% | 9% | 11% |
1-Apr-99 | 31-Dec-99 | 8% | 7% | 10% | 12% |
1-Jan-00 | 31-Mar-00 | 10% | 10% | 10% | 12% |
1-Apr-00 | 31-Mar-01 | 11% | 11% | 11% | 13% |
1-Apr-01 | 30-Jun-01 | 10% | 10% | 10% | 12% |
For additional information: Contact the Office of Customer Services, 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
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