Bulletin Number
VTB 93-11
Tax Type
General Provisions
Description
Interest Rates; First Quarter 1994
Topic
Basis of Tax
Date Issued
12-06-1993
INTEREST RATES
FIRST QUARTER 1994
Rates remain unchanged: The federal rates for the first quarter of 1994 remain at 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 first quarter of 1994 remain at 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 December 31, 1993: 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 Form 500C (for corporations), the fourth quarter 9% underpayment rate will apply through the due date of the return, April 15, 1994, (for corporations) and May 1, 1994 (individuals and fiduciaries).
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 first quarter of 1994, 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 (Refund) (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 Mar 94 6% 9% 11%
For additional information: Contact the Taxpayer Assistance Section, Office of Taxpayer Services 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) 367-8098
Aircraft Sales & Use Tax (804) 367-8098
Other Sales & Use Taxes (804) 367- 8037
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