Texas Comptroller Details New Interest Calculation for Delinquent Taxes and Refunds

The Texas Comptroller of Public Accounts has issued guidance detailing interest calculation procedures for both delinquent tax payments and tax refunds/credits. The guidance establishes that interest on delinquent taxes accrues at 7.75 percent annually (prime rate plus 1 percent) beginning 61 days after the due date, while interest on credits and refunds accrues at 4.112 percent annually (the lesser of treasury pool rate or prime rate plus 1 percent) starting 61 days after payment or due date. Tax professionals should note the standardized three-step calculation method that multiplies the amount by the annual interest rate, then by the number of ...