§ 44-30-84 - Interest on underpayment.
SECTION 44-30-84
§ 44-30-84 Interest on underpayment.– (1) If any amount of Rhode Island personal income tax, including any amount ofthe tax withheld by an employer, is not paid on or before the due date,interest on the amount at the annual rate provided by § 44-1-7 shall bepaid for the period from the due date to the date paid, whether or not anyextension of time for payment was granted. The interest shall not be paid ifits amount is less than two dollars ($2.00).
(2) Interest prescribed under this section may be waived bythe tax administrator in the event the underpayment results from the state'sclosing of banks and credit unions in which the taxpayer's monies are depositedand the taxpayer has no other funds from which to pay his or her tax.
(b) Estimated tax. If an individual fails to file adeclaration of estimated Rhode Island personal income tax as required by §44-30-55, or to pay any installment of the tax as required by § 44-30-56,the individual shall pay interest at the annual rate provided by § 44-1-7for the period the failure continues, until the fifteenth day of the fourthmonth following the close of the taxable year. The interest in respect of anyunpaid installment shall be computed on the amount by which his or her actualpayments and credits in respect of the tax are less than eighty percent (80%)of the installment at the time it is due. Notwithstanding the foregoing, nointerest shall be payable if one of the exceptions specified in 26 U.S.C.§ 6654(d)(1) or (2) would apply if the exceptions referred to thecorresponding Rhode Island tax amounts and returns.
(c) Payment prior to notice of deficiency. If, priorto the mailing to the taxpayer of notice of deficiency under § 44-30-81,the tax administrator mails to the taxpayer a notice of proposed increase oftax and within thirty (30) days after the date of the notice of the proposedincrease the taxpayer pays all amounts shown on the notice to be due to the taxadministrator, no interest under this section on the amount so paid shall beimposed for the period after the date of the notice of proposed increase.
(d) Payment within ten (10) days after notice anddemand. If notice and demand is made for payment of any amount, and theamount is paid within ten (10) days after the effective date of the notice anddemand under § 44-30-81(b), interest under this section on the amount sopaid shall not be imposed for the period after the date of the notice anddemand.
(e) Suspension of interest on deficiencies. If awaiver of restrictions on assessment of a deficiency has been filed by thetaxpayer, and if notice and demand by the tax administrator for payment of thedeficiency is not made within thirty (30) days after the filing of the waiver,interest shall thereupon cease to accrue until the date of notice and demand.
(f) Interest treated as tax. Interest under thissection shall be paid upon notice and demand and shall be assessed, collected,and paid in the same manner as the tax, except that interest under subsection(b) of this section may be assessed without regard to the restrictions of§ 44-30-81.
(g) No interest on interest. No interest shall beimposed on any interest provided in this section.
(h) Interest on civil penalties and additions to tax.Interest shall be imposed under subsection (a) of this section in respect ofany assessable civil penalty or addition to tax only if the assessable penaltyor addition to tax is not paid within fifteen (15) days from the effective dateof notice and demand therefor under § 44-30-81(b), and in that caseinterest shall be imposed only for the period from the effective date of thenotice and demand to the date of payment.
(i) Tax reduced by carryback. If the amount of tax forany taxable year is reduced by reason of a carryback of a net operating loss,the reduction in tax shall not affect the computation of interest under thissection for the period ending with the last day of the taxable year in whichthe net operating loss arises.
(j) Limitation on assessment or collection. Interestprescribed under this section may be assessed or collected at any time duringthe period within which the tax or other amount to which the interest relatesmay be assessed or collected.
(k) Interest on erroneous refund. Any portion of taxor other amount which has been erroneously refunded, and which is recoverableby the tax administrator, shall bear interest at the annual rate provided by§ 44-1-7 from the date of the payment of the refund.