Document Number
15-40
Bulletin Number
VTB 15-2
Tax Type
General Provisions
Description
VIRGINIA’S INTEREST RATES WILL REMAIN THE SAME FOR THE SECOND QUARTER OF 2015
Topic
Interest Rates
Date Issued
03-17-2015

TAX BULLETIN 15-2

Virginia Department of Taxation

March 17, 2015

 

VIRGINIA’S INTEREST RATES WILL REMAIN THE SAME FOR THE SECOND QUARTER OF 2015

Federal Rates Remain Unchanged:  State and certain local interest rates are subject to change every quarter due to changes in federal rates established pursuant to IRC § 6621.  IRC § 6621 dictates that the federal underpayment and overpayment rates are three percentage points higher than the federal short-term rate.  Federal rates for the second quarter of 2015 will be 3% for tax underpayments (assessments) and 3% for tax overpayments (refunds) by taxpayers other than corporations. 

Virginia Code § 58.1-15 provides that the underpayment rate for Virginia taxes will be 2% higher than the corresponding federal rate and the overpayment rate for Virginia taxes will be 2% higher than the corresponding federal rate.  Accordingly, the Virginia rates for the second quarter of 2015 will be 5% for tax underpayments (assessments) and 5% for tax overpayments (refunds).

Rate for Addition to Tax for Underpayments of Estimated Tax

Taxpayers whose taxable year ends on March 31, 2015:  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 second quarter 5% underpayment rate will apply through the due date of the return, July 15, 2015.

Reduced Rate for Certain Assessments in Dispute

Assessments in Dispute: During the 2011 session, the General Assembly passed Senate Bill 1152 (Chapter 295, 2011 Acts of Assembly), which created a reduced rate for certain assessments in dispute.  If a taxpayer files an administrative appeal with the Department of Taxation on or after July 1, 2011, interest begins accruing at the standard underpayment rate until nine months from the date of assessment.  From nine months after the date of assessment until a determination is issued, interest accrues at the federal short-term rate established pursuant to IRC § 6621(b). 

The federal short-term rate established pursuant to IRC § 6621(b) for the second quarter of 2015, rounded to the nearest whole percent, is 0%.  Accordingly, the reduced rate for the second quarter of 2015 for qualifying assessments in dispute is 0%.  This rate applies only to contested assessments for which an administrative appeal was filed on or after July 1, 2011 and the Department has not made a determination within nine months from the date of assessment.  See Va. Code § 58.1-1822 for more information.

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 second quarter of 2015, the federal underpayment rate is 3%.

Refunds:  Localities that 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

Overpayment (Refund)

Underpayment (Assessment)

Reduced

Rate

Beginning

Through

1-Apr-00

31-Mar-01

11%

11%

-

1-Apr-01

30-Jun-01

10%

10%

-

1-Jul-01

31-Dec-01

9%

9%

-

1-Jan-02

31-Dec-02

8%

8%

-

1-Jan-03

30-Sept-03

7%

7%

-

1-Oct-03

31-Mar-04

6%

6%

-

1-Apr-04

30-Jun-04

7%

7%

-

1-Jul-04

30-Sept-04

6%

6%

-

1-Oct-04

31-Mar-05

7%

7%

-

1-Apr-05

30-Sept-05

8%

8%

-

1-Oct-05

30-Jun-06

9%

9%

-

1-July-06

31-Dec-07

10%

10%

-

1-Jan-08

31-Mar-08

9%

9%

-

1-Apr-08

30-Jun-08

8%

8%

-

1-Jul-08

30-Sept-08

7%

7%

-

1-Oct-08

31-Dec-08

8%

8%

-

1-Jan-09

31-Mar-09

7%

7%

-

1-Apr-09

31-Dec-10

6%

6%

-

1-Jan-11

31-Mar-11

5%

5%

-

1-Apr-11

30-Sept-11

6%

6%

-

1-Oct-11

30-Jun-15

5%

5%

0%

Additional Information: Contact Customer Services, Virginia Department of Taxation, P. O. Box 1115, Richmond, Virginia 23218-1115, or call the following numbers for more 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

 

This Tax Bulletin, along with other reference documents, is available online in the Laws, Rules and Decisions section of the Department of Taxation’s website, located at www.tax.virginia.gov.

                                  Factors for Computing Daily Interest   5%
                                 (Simple interest pursuant to Va. Code § 58.1-15)       365 day year
                           
1 0.00014 53 0.00726 105 0.01438 157 0.02151 210 0.02877 262 0.03589 314 0.04301
2 0.00027 54 0.00740 106 0.01452 158 0.02164 211 0.02890 263 0.03603 315 0.04315
3 0.00041 55 0.00753 107 0.01466 159 0.02178 212 0.02904 264 0.03616 316 0.04329
4 0.00055 56 0.00767 108 0.01479 160 0.02192 213 0.02918 265 0.03630 317 0.04342
5 0.00068 57 0.00781 109 0.01493 161 0.02205 214 0.02932 266 0.03644 318 0.04356
6 0.00082 58 0.00795     162 0.02219 215 0.02945 267 0.03658 319 0.04370
7 0.00096 59 0.00808 110 0.01507 163 0.02233 216 0.02959 268 0.03671    
8 0.00110     111 0.01521 164 0.02247 217 0.02973 269 0.03685 320 0.04384
9 0.00123 60 0.00822 112 0.01534 165 0.02260 218 0.02986     321 0.04397
    61 0.00836 113 0.01548 166 0.02274 219 0.03000 270 0.03699 322 0.04411
10 0.00137 62 0.00849 114 0.01562 167 0.02288     271 0.03712 323 0.04425
11 0.00151 63 0.00863 115 0.01575 168 0.02301 220 0.03014 272 0.03726 324 0.04438
12 0.00164 64 0.00877 116 0.01589 169 0.02315 221 0.03027 273 0.03740 325 0.04452
13 0.00178 65 0.00890 117 0.01603     222 0.03041 274 0.03753 326 0.04466
14 0.00192 66 0.00904 118 0.01616 170 0.02329 223 0.03055 275 0.03767 327 0.04479
15 0.00205 67 0.00918 119 0.01630 171 0.02342 224 0.03068 276 0.03781 328 0.04493
16 0.00219 68 0.00932     172 0.02356 225 0.03082 277 0.03795 329 0.04507
17 0.00233 69 0.00945 120 0.01644 173 0.02370 226 0.03096 278 0.03808    
18 0.00247     121 0.01658 174 0.02384 227 0.03110 279 0.03822 330 0.04521
19 0.00260 70 0.00959 122 0.01671 175 0.02397 228 0.03123     331 0.04534
    71 0.00973 123 0.01685 176 0.02411 229 0.03137 280 0.03836 332 0.04548
20 0.00274 72 0.00986 124 0.01699 177 0.02425     281 0.03849 333 0.04562
21 0.00288 73 0.01000 125 0.01712 178 0.02438 230 0.03151 282 0.03863 334 0.04575
22 0.00301 74 0.01014 126 0.01726 179 0.02452 231 0.03164 283 0.03877 335 0.04589
23 0.00315 75 0.01027 127 0.01740     232 0.03178 284 0.03890 336 0.04603
24 0.00329 76 0.01041 128 0.01753 180 0.02466 233 0.03192 285 0.03904 337 0.04616
25 0.00342 77 0.01055 129 0.01767 181 0.02479 234 0.03205 286 0.03918 338 0.04630
26 0.00356 78 0.01068     182 0.02493 235 0.03219 287 0.03932 339 0.04644
27 0.00370 79 0.01082 130 0.01781 183 0.02507 236 0.03233 288 0.03945    
28 0.00384     131 0.01795 184 0.02521 237 0.03247 289 0.03959 340 0.04658
29 0.00397 80 0.01096 132 0.01808 185 0.02534 238 0.03260   0.00000 341 0.04671
    81 0.01110 133 0.01822 186 0.02548 239 0.03274 290   342 0.04685
30 0.00411 82 0.01123 134 0.01836 187 0.02562     291 0.03986 343 0.04699
31 0.00425 83 0.01137 135 0.01849 188 0.02575 240 0.03288 292 0.04000 344 0.04712
32 0.00438 84 0.01151 136 0.01863 189 0.02589 241 0.03301 293 0.04014 345 0.04726
33 0.00452 85 0.01164 137 0.01877     242 0.03315 294 0.04027 346 0.04740
34 0.00466 86 0.01178 138 0.01890 190 0.02603 243 0.03329 295 0.04041 347 0.04753
35 0.00479 87 0.01192 139 0.01904 191 0.02616 244 0.03342 296 0.04055 348 0.04767
36 0.00493 88 0.01205     192 0.02630 245 0.03356 297 0.04068 349 0.04781
37 0.00507 89 0.01219 140 0.01918 193 0.02644 246 0.03370 298 0.04082    
38 0.00521     141 0.01932 194 0.02658 247 0.03384 299 0.04096 350 0.04795
39 0.00534 90 0.01233 142 0.01945 195 0.02671 248 0.03397     351 0.04808
  0.00000 91 0.01247 143 0.01959 196 0.02685 249 0.03411 300 0.04110 352 0.04822
40 0.00548 92 0.01260 144 0.01973 197 0.02699     301 0.04123 353 0.04836
41 0.00562 93 0.01274 145 0.01986 198 0.02712 250 0.03425 302 0.04137 354 0.04849
42 0.00575 94 0.01288 146 0.02000 199 0.02726 251 0.03438 303 0.04151 355 0.04863
43 0.00589 95 0.01301 147 0.02014     252 0.03452 304 0.04164 356 0.04877
44 0.00603 96 0.01315 148 0.02027 200 0.02740 253 0.03466 305 0.04178 357 0.04890
45 0.00616 97 0.01329 149 0.02041 201 0.02753 254 0.03479 306 0.04192 358 0.04904
46 0.00630 98 0.01342     202 0.02767 255 0.03493 307 0.04205 359 0.04918
47 0.00644 99 0.01356 150 0.02055 203 0.02781 256 0.03507 308 0.04219    
48 0.00658     151 0.02068 204 0.02795 257 0.03521 309 0.04233 360 0.04932
49 0.00671 100 0.01370 152 0.02082 205 0.02808 258 0.03534     361 0.04945
    101 0.01384 153 0.02096 206 0.02822 259 0.03548 310 0.04247 362 0.04959
50 0.00685 102 0.01397 154 0.02110 207 0.02836     311 0.04260 363 0.04973
51 0.00699 103 0.01411 155 0.02123 208 0.02849 260 0.03562 312 0.04274 364 0.04986
52 0.00712 104 0.01425 156 0.02137 209 0.02863 261 0.03575 313 0.04288 365 0.05000

 

Last Updated 03/18/2015 07:08