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What is the interest rate for refunds and deficiencies?

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What is the interest rate for refunds and deficiencies?

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If you do not pay the tax by the due date, interest will be charged on the unpaid tax. Interest periods generally begin on the 16th day of the month the return is due. Returns are due on the 15th unless the 15th falls on a Saturday, Sunday or holiday. Interest is figured daily for periods of less than a month. A month, for example, is May 16 to June 15. Interest rates may change once a calendar year. To calculate interest due: • Tax x Annual interest rate x number of full years • Tax x Monthly interest rate x number of months • Tax x Daily interest rate x number of days Interest accrues on any unpaid tax during an extension of time to file.

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