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How Is Your Jurisdiction Calculating Interest On Tax Deficiencies

Posted by [email protected] on Aug. 30, 2023  /  Subscribe 0

Hello, A question came up when we were updating our assessment form if tax should be calculated on a partial month versus a full month. Currently, Fort Collins calculates interest on a full month through the next 20th of the month. It appears many of us have similar wording in the code for interest calculation. Here is Fort Collins Code Sec. 25-188(a) for interest calculations:

"When interest is required or permitted to be charged under any provision of this Article, that interest shall be calculated as follows: (1)Interest at a rate of one (1) percent per month shall be calculated for each month or portion of a month from the due date that a tax deficiency remains unpaid; or ...".

My questions are:

1. If your jurisdiction has similar wording in your tax code, how do you treat the tax calculation?
2. What is the code section that details how interest is calculated?
3. Do you have a tax guide or other document published that provides guidance? If so, please provide a copy or link to the document.

I'll save any responses I receive to a spreadsheet that can be shared later if you're interested.

Thank you, Danielle Wallace Fort Collins Lead Audit, Sales Tax [email protected]

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