§ 75 — Interest on underpayment

§ 75. Interest on underpayment. 1. General.--If any amount of tax is\nnot paid on or before the last date prescribed in whichever of the named\nparts is applicable for payment, interest on such amount at the rate set\nby the commissioner of finance pursuant to section eighty-seven, or, if\nno rate is set, at the rate of six percentum per annum shall be paid for\nthe period from such last date to the date paid, whether or not any\nextension of time for payment was granted. Interest under this\nsubdivision shall not be paid if the amount thereof is less than one\ndollar.\n 2. Exception as to estimated tax.--This section shall not apply to any\nfailure to pay estimated tax under part two or part three of this title.\n 3. Exception for mathematical error.--No interest shall be imposed on\nany underpayment of tax due solely to mathematical error if the taxpayer\nfiles a return within the time prescribed in whichever of the named\nparts is applicable (including any extension of time) and pays the\namount of underpayment within three months after the due date of such\nreturn, as it may be extended.\n 5. Suspension of interest on deficiencies.--If a waiver of\nrestrictions on assessment of a deficiency has been filed by the\ntaxpayer, and if notice and demand by the director of finance for\npayment of such deficiency is not made within thirty days after the\nfiling of such waiver, interest shall not be imposed on such deficiency\nfor the period beginning immediately after such thirtieth day and ending\nwith the date of notice and demand.\n 6. Tax reduced by carryback.--If the amount of tax under part two for\nany taxable year is reduced by reason of a carryback of a net operating\nloss, such reduction in tax shall not affect the computation of interest\nunder this section for the period ending with the filing date for the\ntaxable year in which the net operating loss arises. Such filing date\nshall be determined without regard to extensions of time to file.\n 7. Interest treated as tax.--Interest under this section shall be paid\nupon notice and demand and shall be assessed, collected and paid in the\nsame manner as the taxes under the named parts. Any reference in this\npart to the tax imposed by the named parts, or any of them, shall be\ndeemed also to refer to interest imposed by this section on such tax.\n 8. Interest on penalties or additions to tax.--Interest shall be\nimposed under subdivision one in respect of any assessable penalty or\naddition to tax only if such assessable penalty or addition to tax is\nnot paid within ten days from the date of the notice and demand therefor\nunder subdivision two of section eighty-three and in such case interest\nshall be imposed only for the period from such date of the notice and\ndemand to the date of payment.\n 9. Payment prior to notice of deficiency.--If, prior to the mailing to\nthe taxpayer of a notice of deficiency under subdivision two of section\nseventy-two, the director of finance mails to the taxpayer a notice of\nproposed increase of tax and within thirty days after the date of the\nnotice of proposed increase the taxpayer pays all amounts shown on the\nnotice to be due to the director of finance, no interest under this\nsection on the amount so paid shall be imposed for the period after the\ndate of such notice of proposed increase.\n 10. Payment within ninety days after notice of deficiency.--If a\nnotice of deficiency under section seventy-two is mailed to the\ntaxpayer, and the total amount specified in such notice is paid on or\nbefore the ninetieth day after the date of mailing, interest under this\nsection shall not be imposed for the period after the date of the\nnotice.\n 11. Payment within ten days after notice and demand.--If notice and\ndemand is made for payment of any amount under subdivision two of\nsection eighty-three, and if such amount is paid within ten days after\nthe date of such notice and demand, interest under this section on the\namount so paid shall not be imposed for the period after the date of\nsuch notice and demand.\n 12. Limitation on assessment and collection.--Interest prescribed\nunder this section may be assessed and collected at any time during the\nperiod within which the tax or other amount to which such interest\nrelates may be assessed and collected, respectively.\n 13. Interest on erroneous refund.--Any portion of tax or other amount\nwhich has been erroneously refunded, and which is recoverable by the\ncommissioner of finance, shall bear interest at the rate set by the\ncommissioner of finance pursuant to section eighty-seven, or, if no rate\nis set, at the rate of six percentum per annum from the date of the\npayment of the refund, but only if it appears that any part of the\nrefund was induced by fraud or a misrepresentation of a material fact.\n 14. Satisfaction by credits.--If any portion of a tax is satisfied by\ncredit of an overpayment, then no interest shall be imposed under this\nsection on the portion of the tax so satisfied for any period during\nwhich, if the credit had not been made, interest would have been\nallowable with respect to such overpayment.\n