Administrative Code

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Virginia Administrative Code
Title 23. Taxation
Agency 10. Department of Taxation
Chapter 20. General Provisions Applicable to All Taxes Administered by the Department of Taxation
6/25/2022

23VAC10-20-200. Interest on overpayments or improper collection.

A. Generally. Interest will be allowed and paid upon the overpayment of any tax administered by the department, the refund of which is either permitted or required under Article 2 (§ 58.1-1820 et seq.) of Chapter 18 of Title 58.1 of the Code of Virginia, at a rate equal to the rate of interest established pursuant to § 58.1-15 of the Code of Virginia. Such interest will accrue from a date 60 days after the date of the payment of the tax, except as set forth below, to a date determined by the Department of Taxation, which will not be more than 30 days prior to the date of the refund check.

B. Income tax. Refunds appearing on the face of an income tax return will accrue interest from a date 60 days after the due date for filing the return or the date on which such return was filed, whichever is later. Refunds resulting from payments of estimated tax or withholding tax can only be claimed on the face of the income tax return to which such payments apply.

C. Erroneous assessment.

1. Refunds pursuant to an erroneous assessment accrue interest from the date the assessment was paid.

2. If the assessment is a self assessment paid upon filing a return, the date the assessment is paid is the date the return is filed and the tax paid or the last day prescribed by law for filing the return, whichever is later.

3. If the assessment is a written assessment made pursuant to notice by the department, the date the assessment is paid is the date the department receives payment.

4. A refund is the result of an erroneous assessment if the refund is pursuant to an application for correction of an erroneous assessment or improper collection under § 58.1-1821 of the Code of Virginia, an amended return under § 58.1-1823 of the Code of Virginia, a protective claim under § 58.1-1824 of the Code of Virginia or an application to a court for correction of an erroneous assessment or improper collection under § 58.1-1825 of the Code of Virginia.

D. Sales tax. No interest will be paid on sales taxes refunded to a dealer unless the dealer agrees to pass such interest on to the purchaser. See 23VAC10-20-180 A 2 for more information.

E. Net operating loss. Any overpayment of tax resulting from the carryback of a net operating loss or net capital loss will be deemed to have been made on the day on which the return for the year in which the loss occurred was filed, or the last day prescribed by law for such filing, whichever is later.

Statutory Authority

§ 58.1-203 of the Code of Virginia.

Historical Notes

Derived from VR630-1-1833, eff. January 1, 1985, with retroactive effect according to § 58.1-203 of the Code of Virginia; amended, Virginia Register Volume 25, Issue 11, eff. March 4, 2009.

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