Tax Type
General Provisions
Description
Interest Rates Second Quarter 1989
Topic
Rate of Tax
Date Issued
03-07-1989
89-4
Interest Rates
State and certain local interest rates are subject to change every quarter. The rates for the second quarter of 1989 will be 11% for tax overpayments and 12% for tax underpayments. This is an increase from the first quarter of 1989 when the rates were % for tax overpayments and 11% for tax underpayments.
Rate for Addition to Tax for Underpayments of Estimated Tax
Individuals: Tax returns for the calendar year 1988 are due on May 1, 1989. 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) or Form 760F (for farmers and fishermen), the first quarter 11% underpayment rate will apply through the due date of the return, May 1, 1989.
Corporations: Tax returns for the calendar year 1988 are due on April 15, 1989. For the purpose of computing the addition to the tax for underpayment of Virginia estimated income taxes on Form 500C, the first quarter 11% underpayment rate will apply through the due date of the return, April 15, 1989.
Taxpayers whose taxable year ends on March 31, 1989: 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 12% underpayment rate will apply through the due date of the return, July 15, 1989.
Local Tax
Localities assessing interest on delinquent taxes pursuant to Va. Code §58.1-3916 may impose interest at a rate not to exceed the underpayment rates which are in effect for the applicable quarters of the second and subsequent years of delinquency. For the second quarter of 1989, the underpayment rate is 12%. 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.
Questions about interest rates may be directed to the Taxpayer Assistance Section, Office Services Division, Virginia Department of Taxation, P.O. Box 6-L, Richmond, Virginia 23282, or (804) 257-8031 (Individual) or (804) 257-8036 (Corporation).
Rulings of the Tax Commissioner