Bulletin Number
VTB 93-8
Tax Type
General Provisions
Description
Interest Rates; Third Quarter 1993
Topic
Basis of Tax
Date Issued
07-16-1993
INTEREST RATES
THIRD QUARTER 1993
Rates remain unchanged: The federal rates for the third quarter of 1993 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 second quarter of 1993 remain at 9% for tax underpayments, 6% for tax overpayments, and 11% for "large corporate underpayments".
Rate for Addition to Tax tor Underpayments of Estimated Tax
Taxpayers whose taxable year ends on June 30, 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 second quarter 9% underpayment rate will apply through the due date of the return, October 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 third quarter of 1993, 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.
For additional information: Contact the Taxpayer Assistance Section, Office Services Division, Virginia Department of Taxation, P. O. Box 1880, Richmond, Virginia 232821880, 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 81 Use Taxes (804) 367-8037
Tax Bulletins