Bulletin Number
VTB 92-9
Tax Type
General Provisions
Description
Interest Rates; Fourth Quarter 1992
Topic
Basis of Tax
Date Issued
09-24-1992
INTEREST RATES
FOURTH QUARTER 1992
Rates changed: State and certain local interest rates are subject to change every quarter based on changes in the federal rates established pursuant to I.R.C.§ 6621. The federal rates for the fourth quarter of 1992 will be 7% for tax underpayments (assessments), 6% for tax overpayments (refunds), and 9% for "large corporate underpayments" as defined in I.R.C.§ 6621(c). Va. Code §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 1992 will be 9% for tax underpayments, 6% for tax overpayments, and 11% for "large corporate underpayments".
Rate for Addition to Tax for Underpayments of Estimated Tax
Taxpayers whose taxable year ends on June 30, 1992: 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 760E (for farmers and fishermen), or Form 500C (for corporations), the third quarter 10% underpayment rate will apply through the due date of the return, October 15, 1992.
Taxpayers whose taxable year ends on September 30, 1992: 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 760E (for farmers and fishermen), or Form 500C (for corporations), the fourth quarter 9% underpayment rate will apply through the due date of the return, January 15, 1993.
Local Tax
Assessments: Localities assessing interest on delinquent taxes pursuant to 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 fourth quarter of 1992, the federal underpayment rate is 7%.
Refunds: Localities which have provided for refund of erroneously assessed taxes may provide by ordinance that such refund be repaid with interest at a rate which does not
exceed the rate imposed by the locality for delinquent taxes.
Recent Interest Rates
Accrual Period Overpayment Underpayment Large Corporate
Beginning Through (Refunds (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-Sep-92 7% 10% 12%
1-Oct-92 31-Dec-92 6% 9% 11%
For additional information: Contact the Taxpayer Assistance Section, Office Services
Division, Virginia Department of Taxation, P. O. Box 1880, Richmond, Virginia 23282-1880, or call the following numbers for additional information about interest rates and penalties.
Individual & Fiduciary Income Tax (804) 367-8031
Corporation Income Tax (804) 367-8036
Withholding Tax (804) 367-8038
Soft Drink Excise Tax (804) 367-8016
Aircraft Sales & Use Tax (804) 367-8098
Other Sales & Use Taxes (804) 367-8037
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