Bulletin Number
VTB 94-12
Tax Type
General Provisions
Description
Interest Rates; Fourth Quarter 1994
Topic
Basis of Tax
Date Issued
09-23-1994
Interest Rates: Fourth Quarter 1994
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 first quarter of 1995 reaming at 9% for tax underpayments (assessments), 8% for tax overpayments (refunds), and 11% for "large corporate underpayments' as defined in I.R.C. § 6621(c). Code of Virginia § 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 1995 remain at 11% for tax underpayments, 8% for tax overpayments, and 13% for "large corporate underpayments.'
Rate for Addition to Tax for Underpayments of Estimated Tax
Taxpayers whose taxable year ends on June 30, 1994: 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 third quarter of 1995 10% underpayment rate will apply through the due date of the return, October 17, 1994
Taxpayers whose taxable year ends on September 30, 1994: 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 11% underpayment rate will apply through the due date of the return, January 16, 1995.
Local Tax
Assessments: Localities assessing interest on delinquent taxes pursuant to Code of Virginia § 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 1994, the federal underpayment rate is 9%.
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 30-Jun- 94 6% 9% 11%
1-Jul-94 30-Sep-94 7% 10% 12%
1-Oct-94 31-Dec-94 8% 11% 13%
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) 367-8037
Withholding Tax (804) 367-8037
Soft Drink Excise Tax (804) 367-8098
Aircraft Sales & Use Tax (804) 367-8098
Other Sales & Use Taxes (804) 367-8037
Tax Bulletins