A. If an individual is entitled to an income tax refund for the taxable year, that individual may designate on his Virginia individual income tax return a contribution to one or more Commonwealth Savers Plan accounts established under Chapter 7 (§ 23.1-700 et seq.) of Title 23.1, in the amount of the entire individual income tax refund or a portion thereof.
B. 1. The Department of Taxation shall send each contribution made pursuant to subsection A to the Commonwealth Savers Plan with the following information: a. The amount of the individual income tax refund or that portion of the refund that the individual has chosen to contribute; b. The taxpayer’s name, Social Security number or taxpayer identification number, address, and telephone number; and c. The Commonwealth Savers Plan account number or numbers into which the contributions will be deposited.
2. If a contribution to a Commonwealth Savers Plan account is designated in an individual income tax return filed jointly by married individuals, the Department of Taxation shall send the information described in subdivision 1 for both spouses to the Commonwealth Savers Plan.
C. 1. If the taxpayer owns a single Commonwealth Savers Plan account, the Commonwealth Savers Plan shall deposit the contribution made pursuant to subsection A into that account.
2. If the taxpayer owns more than one Commonwealth Savers Plan account, the Commonwealth Savers Plan shall allocate the contribution made pursuant to subsection A between or among the accounts in equal amounts, or as otherwise designated by the taxpayer.
3. If the taxpayer does not own an existing Commonwealth Savers Plan account and does not wish to open an account, contributions made pursuant to subsection A shall be returned to the taxpayer by the Commonwealth Savers Plan.
D. For the purpose of determining interest on an overpayment or refund under § 58.1-1833, no interest shall accrue after the Department of Taxation sends the contribution to the Commonwealth Savers Plan.
E. Any taxpayer designating that a refund be contributed to a Commonwealth Savers Plan account shall, by making such designation, be deemed to authorize the Department of Taxation to provide all necessary information, including the information specified in subdivision B 1, to the Commonwealth Savers Plan.