Document Number
05-98
Bulletin Number
VTB 05-8
Tax Type
General Provisions
Description
Third Quarter Interest Rates 2005
Topic
Interest Rates
Date Issued
06-23-2005
 
TAX BULLETIN 05-8
Virginia Department of Taxation
June 23, 2005

INTEREST RATES

THIRD QUARTER 2005


Federal Rates 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 third quarter of 2005 remain 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). Va. Code § 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 third quarter of 2005 remain 8% for tax underpayments (assessments), 8% for tax overpayments (refunds), and 10% for “large corporate underpayments.”

 



Taxpayers whose taxable year ends on June 30, 2005: For the purpose of computing the addition to the tax for underpayment of Virginia estimated income taxes on Form 500C (for corporations), Form 760C (for individuals, estates and trusts), or Form 760F (for farmers and fishermen), the third quarter 8% underpayment rate will apply through the due date of the return, October 17, 2005, (for corporations), and November 1, 2005, (for individuals and fiduciaries).

Local Tax


Assessments: Localities that assess interest on delinquent taxes under Va. Code § 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 2005, the federal underpayment rate is 6%.

Refunds: Effective July 1, 1999, localities which charge interest on delinquent taxes are required to pay interest to taxpayers on all overpayments or erroneously assessed taxes at the same rate as they charge interest on delinquent taxes under Va. Code§ 58.1-3916.

Recent Interest Rates

 

Accrual
Period
Non –Corporation Overpayment
Corporation Overpayment
Underpayment
Large Corporate
Beginning
Through
(Refund)
(Refund)
(Assessment)
Underpayment
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%
1-Jan-03
30-Sep-03
7%
7%
7%
9%
1-Oct-03
31-Mar-04
6%
6%
6%
8%
1-Apr-04
30-Jun-04
7%
7%
7%
9%
1-Jul-04
30-Sep-04
6%
6%
6%
8%
1-Oct-04
31-Mar-05
7%
7%
7%
9%
1-Apr-05
30-Sep-05
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) 786-2450
Aircraft Sales & Use Tax(804) 786-2450
Other Sales & Use Taxes(804) 367-8037


In addition, this Tax Bulletin along with other reference documents are available online in the Tax Policy Library section of the Department of Taxation’s web site, located at www.tax.virginia.gov.



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Last Updated 08/26/2014 13:24