Title 15 . Revenue

Chapter 21 . (Repealed)

Section 730. Computation of interest

15 AAC 21.730. Computation of interest

(a) On Unpaid Taxes. A taxpayer shall pay interest at the rate prescribed in AS 43.05.225 for that portion of its taxes remaining unpaid after payment becomes due. This interest must be computed for the period beginning from (and including) the applicable starting date specified in this subsection and ending with (but not including) the date of payment. For purposes of this subsection,

(1) for an installment under 15 AAC 21.710(a) or (b), the starting date is the date specified for that installment in the schedule in 15 AAC 21.710(a) and (b); but the only amount that may be considered unpaid in connection with an installment payment is the amount (if any) by which the installment actually paid falls short of what the amount of that installment should be, as indicated from the taxpayer's report filed for that installment;

(2) for a payment required to be paid under 15 AAC 21.710(d) at the time the taxpayer files its annual return, the starting date is the earlier of (A) the date the return is filed; or (B) the date the return is required to be filed (not counting any extension for filing granted under 15 AAC 21.710(d) ); but the only amount that may be considered unpaid in connection with a payment made at the time of filing is the amount (if any) by which that payment falls short of the amount that should be paid as indicated from the return;

(3) for a payment required under 15 AAC 21.710(e) to satisfy an assessment by the department, the starting date is the date specified in that section for the payment;

(4) for a payment required as the result of an audit that increases the assessment for a tax year, the starting date is September 30 of the year following that tax year (for a fiscal-year taxpayer, the last day of the ninth month after the month in which that tax year ended).

(b) On Refunds. Interest at the rate prescribed in AS 43.05.280 will be paid to a taxpayer for a refund under 15 AAC 21.720. This interest will be computed for a period beginning from (and including) the applicable starting date specified in this subsection and ending on a date chosen by the department that is not more than 30 days before the date of the refund check or wire transfer. For purposes of this subsection,

(1) when the refund arises from one or more installments under 15 AAC 21.710(a) or (b) that partially or wholly exceeded the amount of the department's original assessment under 15 AAC 21.700(e) , the starting date is the date of each such installment;

(2) when the refund arises from a payment required to be paid under 15 AAC 21.710(d) at the time the taxpayer files its annual return, the starting date is the date the payment is made;

(3) for a refund arising from a reduction in the assessment for a tax year as the result of a subsequent audit by the department, the starting date is September 30 of the year following that tax year (for a fiscal-year taxpayer, the last day of the ninth month after the month in which that tax year ended);

(4) for a refund arising from a reduction in the assessment for a tax year as the result of a carryback of a later year's net loss, the starting date is September 30 of the year following the tax year whose net loss is being carried back (for a fiscal-year taxpayer, the last day of the ninth month after the month in which the tax year ended whose net loss is being carried back).

(c) On Credits Arising From Retroactive Amendments to AS 43.21. Interest at the rate prescribed in AS 43.05.280 will be credited to a taxpayer for a reduction in tax liability resulting from retroactive amendments to AS 43.21. This interest will be computed for a period beginning from (and including) the date an overpayment was made and ending with (but not including) the date the credit is applied. For purposes of this subsection, the amount of an overpayment is the amount by which the original payment would have been reduced if the retroactive amendments to AS 43.21 had been in effect for the income period giving rise to that original obligation. The date the credit is applied will be the earliest date on which the taxpayer would be required to submit a payment to the department with a declaration of estimated tax or as a final payment of tax under AS 43.21 or AS 43.20. The balance of the credit, if any, will be applied to subsequent payments on the dates on which the taxpayer would be required to make a payment under AS 43.21 or AS 43.20, with interest continuing on the balance of the credit until the balance is applied in full.

History: Eff. 2/22/79, Register 69; am 3/26/82, Register 81

Authority: Sec. 20, ch. 116,

SLA 1981

AS 43.05.080

AS 43.05.225

AS 43.05.280

AS 43.21.090