TAX NEWS - March 2009

California tax: Interest on Delayed Payments

Although payments are being held, most taxpayers will not be entitled to interest unless the delay goes for several months. For individuals and fiduciaries, interest on current year refunds is only paid if the refund is not issued within 45 days after April 15, or the date that the return is filed, whichever is later. In most cases, interest will be paid if refunds are issued after May 30, 2009.

For bank and corporate taxpayers, the refunds must be paid within the later of 90 days after the return is filed, or 90 days after the last day prescribed for filing the return, without regard to extensions. In most cases, refunds must be issued after June 15, 2009 for interest to apply.