Tax Type
General Provisions
Description
INTEREST RATES FIRST QUARTER 1992
Topic
Penalties and Interest
Date Issued
12-15-1991
INTEREST RATES
FIRST QUARTER 1992 Rates change: 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 rates for the first quarter of 1992 will be 9% for tax underpayments (assessments) and 8% for tax overpayments (refunds), and 11% 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 1992 will be 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 September 30, 1991: 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 12% underpayment rate will apply through the due date of the return, January 15, 1992.
Individuals whose taxable years ends on December 31, 1991: Tax returns for the calendar year 1991 are due on May 1, 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) or Form 760E (for farmers and fishermen), the first quarter 11% underpayment rate will apply through the due date of the return, May 1, 1992.
Corporations with taxable years ending on December 31, 1991: Tax returns for the calendar year 1991 are due on April 15, 1992. 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,
1992.
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 1991, 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-Sept-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%
For Additional Information
Contact the Taxpayer Assistance Section, Office Services Division, Virginia Department
of Taxation. P. O. Box 6-L, Richmond, Virginia 23282, 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
Rulings of the Tax Commissioner