                                 CODE OF VIRGINIA

INTEREST ON OVERPAYMENTS OR IMPROPER COLLECTION (§ 58.1-1833)

A. Interest shall be allowed and paid upon the overpayment of any tax
administered by the Department, the refund of which is permitted or required
under the provisions of this article, or on moneys improperly collected from the
taxpayer and refunded pursuant to &#xA7; 58.1-1822, at a rate equal to the rate
of interest established pursuant to &#xA7; 58.1-15. Such interest shall accrue
from a date sixty days after payment of the tax, or sixty days after the last
day prescribed by law for such payment, whichever is later, and shall end on a
date determined by the Department preceding the date of the refund check by not
more than thirty days. Notwithstanding the above, any tax refunded pursuant to a
court order or otherwise as a result of an erroneous assessment shall bear
interest from the date the assessment was paid. No interest will be paid on
sales taxes refunded to a dealer unless the dealer agrees to pass such interest
on to the purchaser.

B. 1. Notwithstanding the provisions of subsection A, if an individual overpays
his individual income tax, the overpayment was for individual income taxes for
the immediately preceding taxable year, and the overpayment has not been
refunded, then interest shall accrue on the amount of the overpayment,
beginning:

   i. thirty days after payment of such tax if the individual filed his
   individual income tax return via electronic means; or

      ii. sixty days after payment of such tax if the individual filed his
      individual income tax return using a method other than electronic means.
      					In no case shall interest be paid for the overpayment of the same tax
      pursuant to this subsection and subsection A.

         2. For the purposes of this subsection, interest shall accrue at a rate
         equal to the rate of interest established pursuant to &#xA7; 58.1-15. Such
         interest shall end on a date determined by the Department preceding the
         date of the refund check by not more than seven days.

C. For purposes of this section:

   1. Any individual income tax deducted and withheld at the source and paid to
   the Department, and any amount paid as estimated tax, shall be deemed to have
   been paid on the day on which the return for such year&#8217;s income was
   filed;

   2. Any corporate or estate and trust income tax deducted and withheld at the
   source and paid to the Department, and any amount paid as estimated tax, shall
   be deemed to have been paid on the day on which the return for such
   year&#8217;s income was filed, or the last day prescribed by law for filing
   such return, whichever is later; and

   3. Any overpayment of tax resulting from the carry-back of a net operating
   loss or net capital loss shall 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.

D. The Tax Commissioner and the State Comptroller shall implement procedures to
allow an individual requesting a refund of the overpayment of individual income
tax when filing his individual income tax return to elect on such return to have
the refund paid by check mailed to the address provided on his return. The
ability of the individual to elect such refund check shall be in addition to
other methods utilized by the State Comptroller for the payment of such refund,
including but not limited to direct deposits or other electronic means.

HISTORY: Code 1950, § 58-1140.1; 1973, c. 446; 1974, c. 425; 1976, c. 456;
1980, c. 663; 1984, c. 675; 2002, cc. 184, 462; 2015, cc. 76, 229.