Document Number
88-1
Bulletin Number
VTB 88-1
Tax Type
General Provisions
Description
Interest Rates; Second Quarter 1988
Topic
Basis of Tax
Date Issued
03-15-1988


State and certain local interest rates are subject to change every quarter. The rates for the second quarter of 1988 will be 9% for the tax overpayments and 10% for tax underpayments. This is a change from the first quarter of 1988 when the rates were 10% 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 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 (for individuals) or Form 760F (for farmers and fishermen), the first quarter 11% rate will apply through the due date of the return, 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 first quarter 11% rate will apply through the due date of the return, April 15, 1988.

Taxpayers whose taxable year ends on March 31, 1988: For the purpose of computing the addition to the tax for underpayment of Virginia estimated income taxes on Form 760C (for individuals), Form 760F (for farmers and fishermen) or Form 500C (for corporations), the second quarter 10% rate will apply through the due date of the return, July 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 second quarter of 1988, the underpayment rate is 10%. 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


                • Rate for Rate for
                  Underpayment Overpayment
                  (Assessments) (Refunds)

                  Period
                  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%
                  1/1/88 - 3/31/88 11% 10%
                  4/1/88 - 6/30/88 10% 9%
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 (Corporations).



Tax Bulletins

Last Updated 08/25/2014 16:44