Bulletin Number
VTB 87-16
Tax Type
General Provisions
Description
Interest Rates; First Quarter 1988
Topic
Basis of Tax
Date Issued
12-15-1987
State and certain local interest rates are subject to change every quarter. The rates for the first quarter of 1988 will be 10% for tax overpayments and 11% for tax underpayments. This is a change from the fourth quarter of 1987 when the rates were 9% for tax overpayments and 10% for tax underpayments.
Rate for Addition to Tax for Underpayments of Estimated Tax
Individuals: Tax returns for the calendar year 1987 are due on May 1, 1988. For the purpose of computing the addition to the tax for underpayment of Virginia estimated income taxes on Form 760C, the 11% rate will apply through May 1, 1988.
Corporations: Tax returns for the calendar year 1987 are due on April 15, 1988. For the purpose of computing the addition to the tax for underpayment of Virginia estimated income taxes on Form 500C, the 11% rate will apply through April 15, 1988.
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 first quarter of 1988, the underpayment rate is 11%. 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.
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- Rate for Rate for
Underpayment Overpayment
Period (Assessments) (Refunds)
7/1/83=12/31/84 11% 11%
1/1/85=6/30/85 13% 13%
7/1/85=12/31/85 11% 11%
1/1/86=6/30/86 10% 10%
7/1/86=12/31/86 9% 9%
1/1/87=9/30/87 9% 8%
10/1/87=12/31/87 10% 9%
- Rate for Rate for
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