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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
11/23/2024

23VAC10-20-60. Rate of interest.

A. In general. The Internal Revenue Code requires that interest accruing be compounded daily. Although Virginia uses the nominal interest rate established pursuant to IRC § 6621, Virginia applies simple interest computations without compounding.

B. Interest is computed by excluding the due date and including the date of payment in the number of days. For example, interest on $100 tax due June 20, 1983, and paid July 10, 1983, would be computed as follows:

June 21 through June 30 = 10 days at 16%

10

x 0.16 = 0.004383

365

July 1 through July 10 = 10 days at 11%

10

x 0.11 = 0.003013

365

Total Interest Factor 0.007396 x $100 = $0.74 interest

Note that June 20, the due date, is not counted, and that July 10 and all intervening days are counted.

C. See § 58.15 of the Code of Virginia for provisions defining rates of interest and methods to determine interest and additions to tax.

Statutory Authority

§ 58.1-203 of the Code of Virginia.

Historical Notes

Derived from VR630-1-15, eff. January 1, 1985, with retroactive effect according to § 58.1-203 of the Code of Virginia; amended, Virginia Register Volume 40, Issue 24, eff. September 28, 2024.

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