Bulletin Number
VTB 88-13
Tax Type
General Provisions
Description
Interest Rates; Fourth Quarter 1988
Topic
Basis of Tax
Date Issued
09-15-1988
88-13
Interest Rates Fourth Quarter 1988
State and certain local interest rates are subject to change every quarter. The rates for the fourth quarter of 1988 will be 10% for tax overpayments and 11% for tax underpayments. These rates are an increase from the second and third quarters of 1988 when the rates were 9% for tax overpayments and 10% for tax underpayments.
Rate for Addition to Tax for Underpayment of Estimated Tax
Taxpayers whose taxable year ends on September 30, 1988: For the purpose of computing the addition to the tax for underpayment of Virginia estimated income taxes on Form 750C (for individuals), Form 760F (for farmers and fishermen), or Form 500C (for corporations), the 11% rate will apply through the due date of the return, January 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 fourth 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 rot exceed the rate imposed by the locality for delinquent taxes.
Recent Interest Rates Rate for Rate for
Underpayment Overpayment
Period (Assessments) (Refunds)
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These numbers can be found in the P.D. binder labeled
88-247 through 88-305
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Questions about interest rates can be directed to the Taxpayer Assistance Section, Office Services Division, Virginia Department of Taxation, P. O. Box 6-L Richmond, Virginia 23282, or (804) 367-8031 (Individual) or (804) 367-8035 (Corporation).
Tax Bulletins