02-5 | Virginia Tax

Bulletin Number

VTB 02-5

Tax Type

General Provisions

Description

Fourth Quarter Interest Rates

Topic

Basis of Tax

Date Issued

09-26-2002

Fourth Quarter Interest Rates

TAX BULLETIN 02-5
Virginia Department of Taxation

INTEREST RATES

FOURTH QUARTER 2002

Rates Remain Unchanged: 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 fourth quarter of 2002 will remain at 6% for tax underpayments (assessments), 6% for tax overpayments (refunds) by taxpayers other than corporations, and 8% 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 fourth quarter of 2002 will be 8% for tax underpayments (assessments), 8% for tax overpayments (refunds), and 10% for “large corporate underpayments.”

Rate for Addition to Tax for Underpayments of Estimated Tax

Taxpayers whose taxable year ends on September 30, 2002: 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 8% underpayment rate will apply through the due date of the return, January 15, 2003 (for corporations), and February 3, 2003 (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 fourth quarter of 2002, the federal underpayment rate is 6%.

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-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%
1-Jul-01	31-Dec-01	9%	9%	9%	11%
1-Jan-02	31-Dec-02	8%	8%	8%	10%

Additional Information: Contact 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

Factors for Computing Daily Interest	8%
(Simple interest for 365 day year pursuant to Code of Virginia § 58.1-15)

1	0.00022	53	0.01162	105	0.02301	157	0.03441	210	0.04603	262	0.05742	314	0.06882
2	0.00044	54	0.01184	106	0.02323	158	0.03463	211	0.04625	263	0.05764	315	0.06904
3	0.00066	55	0.01205	107	0.02345	159	0.03485	212	0.04647	264	0.05786	316	0.06926
4	0.00088	56	0.01227	108	0.02367	160	0.03507	213	0.04668	265	0.05808	317	0.06948
5	0.00110	57	0.01249	109	0.02389	161	0.03529	214	0.04690	266	0.05830	318	0.06970
6	0.00132	58	0.01271			162	0.03551	215	0.04712	267	0.05852	319	0.06992
7	0.00153	59	0.01293	110	0.02411	163	0.03573	216	0.04734	268	0.05874
8	0.00175			111	0.02433	164	0.03595	217	0.04756	269	0.05896	320	0.07014
9	0.00197	60	0.01315	112	0.02455	165	0.03616	218	0.04778			321	0.07036
		61	0.01337	113	0.02477	166	0.03638	219	0.04800	270	0.05918	322	0.07058
10	0.00219	62	0.01359	114	0.02499	167	0.03660			271	0.05940	323	0.07079
11	0.00241	63	0.01381	115	0.02521	168	0.03682	220	0.04822	272	0.05962	324	0.07101
12	0.00263	64	0.01403	116	0.02542	169	0.03704	221	0.04844	273	0.05984	325	0.07123
13	0.00285	65	0.01425	117	0.02564			222	0.04866	274	0.06005	326	0.07145
14	0.00307	66	0.01447	118	0.02586	170	0.03726	223	0.04888	275	0.06027	327	0.07167
15	0.00329	67	0.01468	119	0.02608	171	0.03748	224	0.04910	276	0.06049	328	0.07189
16	0.00351	68	0.01490			172	0.03770	225	0.04932	277	0.06071	329	0.07211
17	0.00373	69	0.01512	120	0.02630	173	0.03792	226	0.04953	278	0.06093
18	0.00395			121	0.02652	174	0.03814	227	0.04975	279	0.06115	330	0.07233
19	0.00416	70	0.01534	122	0.02674	175	0.03836	228	0.04997			331	0.07255
		71	0.01556	123	0.02696	176	0.03858	229	0.05019	280	0.06137	332	0.07277
20	0.00438	72	0.01578	124	0.02718	177	0.03879			281	0.06159	333	0.07299
21	0.00460	73	0.01600	125	0.02740	178	0.03901	230	0.05041	282	0.06181	334	0.07321
22	0.00482	74	0.01622	126	0.02762	179	0.03923	231	0.05063	283	0.06203	335	0.07342
23	0.00504	75	0.01644	127	0.02784			232	0.05085	284	0.06225	336	0.07364
24	0.00526	76	0.01666	128	0.02805	180	0.03945	233	0.05107	285	0.06247	337	0.07386
25	0.00548	77	0.01688	129	0.02827	181	0.03967	234	0.05129	286	0.06268	338	0.07408
26	0.00570	78	0.01710			182	0.03989	235	0.05151	287	0.06290	339	0.07430
27	0.00592	79	0.01732	130	0.02849	183	0.04011	236	0.05173	288	0.06312
28	0.00614			131	0.02871	184	0.04033	237	0.05195	289	0.06334	340	0.07452
29	0.00636	80	0.01753	132	0.02893	185	0.04055	238	0.05216			341	0.07474
		81	0.01775	133	0.02915	186	0.04077	239	0.05238	290	0.06356	342	0.07496
30	0.00658	82	0.01797	134	0.02937	187	0.04099			291	0.06378	343	0.07518
31	0.00679	83	0.01819	135	0.02959	188	0.04121	240	0.05260	292	0.06400	344	0.07540
32	0.00701	84	0.01841	136	0.02981	189	0.04142	241	0.05282	293	0.06422	345	0.07562
33	0.00723	85	0.01863	137	0.03003			242	0.05304	294	0.06444	346	0.07584
34	0.00745	86	0.01885	138	0.03025	190	0.04164	243	0.05326	295	0.06466	347	0.07605
35	0.00767	87	0.01907	139	0.03047	191	0.04186	244	0.05348	296	0.06488	348	0.07627
36	0.00789	88	0.01929			192	0.04208	245	0.05370	297	0.06510	349	0.07649
37	0.00811	89	0.01951	140	0.03068	193	0.04230	246	0.05392	298	0.06532
38	0.00833			141	0.03090	194	0.04252	247	0.05414	299	0.06553	350	0.07671
39	0.00855	90	0.01973	142	0.03112	195	0.04274	248	0.05436			351	0.07693
		91	0.01995	143	0.03134	196	0.04296	249	0.05458	300	0.06575	352	0.07715
40	0.00877	92	0.02016	144	0.03156	197	0.04318			301	0.06597	353	0.07737
41	0.00899	93	0.02038	145	0.03178	198	0.04340	250	0.05479	302	0.06619	354	0.07759
42	0.00921	94	0.02060	146	0.03200	199	0.04362	251	0.05501	303	0.06641	355	0.07781
43	0.00942	95	0.02082	147	0.03222			252	0.05523	304	0.06663	356	0.07803
44	0.00964	96	0.02104	148	0.03244	200	0.04384	253	0.05545	305	0.06685	357	0.07825
45	0.00986	97	0.02126	149	0.03266	201	0.04405	254	0.05567	306	0.06707	358	0.07847
46	0.01008	98	0.02148			202	0.04427	255	0.05589	307	0.06729	359	0.07868
47	0.01030	99	0.02170	150	0.03288	203	0.04449	256	0.05611	308	0.06751
48	0.01052			151	0.03310	204	0.04471	257	0.05633	309	0.06773	360	0.07890
49	0.01074	100	0.02192	152	0.03332	205	0.04493	258	0.05655			361	0.07912
		101	0.02214	153	0.03353	206	0.04515	259	0.05677	310	0.06795	362	0.07934
50	0.01096	102	0.02236	154	0.03375	207	0.04537			311	0.06816	363	0.07956
51	0.01118	103	0.02258	155	0.03397	208	0.04559	260	0.05699	312	0.06838	364	0.07978
52	0.01140	104	0.02279	156	0.03419	209	0.04581	261	0.05721	313	0.06860	365	0.08000

Factors for Computing Daily Interest	10%
(Simple interest for 365 day year pursuant to Code of Virginia § 58.1-15)

1	0.00027	53	0.01452	105	0.02877	157	0.04301	210	0.05753	262	0.07178	314	0.08603
2	0.00055	54	0.01479	106	0.02904	158	0.04329	211	0.05781	263	0.07205	315	0.08630
3	0.00082	55	0.01507	107	0.02932	159	0.04356	212	0.05808	264	0.07233	316	0.08658
4	0.00110	56	0.01534	108	0.02959	160	0.04384	213	0.05836	265	0.07260	317	0.08685
5	0.00137	57	0.01562	109	0.02986	161	0.04411	214	0.05863	266	0.07288	318	0.08712
6	0.00164	58	0.01589			162	0.04438	215	0.05890	267	0.07315	319	0.08740
7	0.00192	59	0.01616	110	0.03014	163	0.04466	216	0.05918	268	0.07342
8	0.00219			111	0.03041	164	0.04493	217	0.05945	269	0.07370	320	0.08767
9	0.00247	60	0.01644	112	0.03068	165	0.04521	218	0.05973			321	0.08795
		61	0.01671	113	0.03096	166	0.04548	219	0.06000	270	0.07397	322	0.08822
10	0.00274	62	0.01699	114	0.03123	167	0.04575			271	0.07425	323	0.08849
11	0.00301	63	0.01726	115	0.03151	168	0.04603	220	0.06027	272	0.07452	324	0.08877
12	0.00329	64	0.01753	116	0.03178	169	0.04630	221	0.06055	273	0.07479	325	0.08904
13	0.00356	65	0.01781	117	0.03205			222	0.06082	274	0.07507	326	0.08932
14	0.00384	66	0.01808	118	0.03233	170	0.04658	223	0.06110	275	0.07534	327	0.08959
15	0.00411	67	0.01836	119	0.03260	171	0.04685	224	0.06137	276	0.07562	328	0.08986
16	0.00438	68	0.01863			172	0.04712	225	0.06164	277	0.07589	329	0.09014
17	0.00466	69	0.01890	120	0.03288	173	0.04740	226	0.06192	278	0.07616
18	0.00493			121	0.03315	174	0.04767	227	0.06219	279	0.07644	330	0.09041
19	0.00521	70	0.01918	122	0.03342	175	0.04795	228	0.06247			331	0.09068
		71	0.01945	123	0.03370	176	0.04822	229	0.06274	280	0.07671	332	0.09096
20	0.00548	72	0.01973	124	0.03397	177	0.04849			281	0.07699	333	0.09123
21	0.00575	73	0.02000	125	0.03425	178	0.04877	230	0.06301	282	0.07726	334	0.09151
22	0.00603	74	0.02027	126	0.03452	179	0.04904	231	0.06329	283	0.07753	335	0.09178
23	0.00630	75	0.02055	127	0.03479			232	0.06356	284	0.07781	336	0.09205
24	0.00658	76	0.02082	128	0.03507	180	0.04932	233	0.06384	285	0.07808	337	0.09233
25	0.00685	77	0.02110	129	0.03534	181	0.04959	234	0.06411	286	0.07836	338	0.09260
26	0.00712	78	0.02137			182	0.04986	235	0.06438	287	0.07863	339	0.09288
27	0.00740	79	0.02164	130	0.03562	183	0.05014	236	0.06466	288	0.07890
28	0.00767			131	0.03589	184	0.05041	237	0.06493	289	0.07918	340	0.09315
29	0.00795	80	0.02192	132	0.03616	185	0.05068	238	0.06521			341	0.09342
		81	0.02219	133	0.03644	186	0.05096	239	0.06548	290	0.07945	342	0.09370
30	0.00822	82	0.02247	134	0.03671	187	0.05123			291	0.07973	343	0.09397
31	0.00849	83	0.02274	135	0.03699	188	0.05151	240	0.06575	292	0.08000	344	0.09425
32	0.00877	84	0.02301	136	0.03726	189	0.05178	241	0.06603	293	0.08027	345	0.09452
33	0.00904	85	0.02329	137	0.03753			242	0.06630	294	0.08055	346	0.09479
34	0.00932	86	0.02356	138	0.03781	190	0.05205	243	0.06658	295	0.08082	347	0.09507
35	0.00959	87	0.02384	139	0.03808	191	0.05233	244	0.06685	296	0.08110	348	0.09534
36	0.00986	88	0.02411			192	0.05260	245	0.06712	297	0.08137	349	0.09562
37	0.01014	89	0.02438	140	0.03836	193	0.05288	246	0.06740	298	0.08164
38	0.01041			141	0.03863	194	0.05315	247	0.06767	299	0.08192	350	0.09589
39	0.01068	90	0.02466	142	0.03890	195	0.05342	248	0.06795			351	0.09616
		91	0.02493	143	0.03918	196	0.05370	249	0.06822	300	0.08219	352	0.09644
40	0.01096	92	0.02521	144	0.03945	197	0.05397			301	0.08247	353	0.09671
41	0.01123	93	0.02548	145	0.03973	198	0.05425	250	0.06849	302	0.08274	354	0.09699
42	0.01151	94	0.02575	146	0.04000	199	0.05452	251	0.06877	303	0.08301	355	0.09726
43	0.01178	95	0.02603	147	0.04027			252	0.06904	304	0.08329	356	0.09753
44	0.01205	96	0.02630	148	0.04055	200	0.05479	253	0.06932	305	0.08356	357	0.09781
45	0.01233	97	0.02658	149	0.04082	201	0.05507	254	0.06959	306	0.08384	358	0.09808
46	0.01260	98	0.02685			202	0.05534	255	0.06986	307	0.08411	359	0.09836
47	0.01288	99	0.02712	150	0.04110	203	0.05562	256	0.07014	308	0.08438
48	0.01315			151	0.04137	204	0.05589	257	0.07041	309	0.08466	360	0.09863
49	0.01342	100	0.02740	152	0.04164	205	0.05616	258	0.07068			361	0.09890
		101	0.02767	153	0.04192	206	0.05644	259	0.07096	310	0.08493	362	0.09918
50	0.01370	102	0.02795	154	0.04219	207	0.05671			311	0.08521	363	0.09945
51	0.01397	103	0.02822	155	0.04247	208	0.05699	260	0.07123	312	0.08548	364	0.09973
52	0.01425	104	0.02849	156	0.04274	209	0.05726	261	0.07151	313	0.08575	365	0.10000

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