Rate
(a) Interest shall be allowed and paid upon any overpayment in respect of any internal revenue tax at the rate of 12 percent per annum.
Period
(b) Such interest shall be allowed and paid as follows—
(1) Credits. In the case of a credit, from the date of the overpayment to the due date of the amount against which the credit is taken, but if the amount against which the credit is taken is an additional assessment, then to the date of the assessment of that amount.
(2) Refunds. In the case of a refund, from the date of the overpayment to a date (to be determined by the Director) preceding the date of the refund check by not more than 30 days, whether or not such refund check is accepted by the taxpayer after tender of such check to the taxpayer. The acceptance of such check shall be without prejudice to any right of the taxpayer to claim any additional overpayment and interest thereon.
(3) No interest shall be allowed or paid upon any overpayment claimed as a credit under the provisions of section 42d, Title 33, Virgin Islands Code, for excise taxes paid on articles, goods, merchandise, and commodities exported from the Virgin Islands.
Additional assessment defined
(c) As used in this section, the term “additional assessment” means a further assessment for a tax of the same character previously paid in part, and includes the assessment of a deficiency (as defined in section 941 of this title).
Advance payment of tax
(d) The provisions of section 1183 of this title applicable in determining the date of payment of tax for purposes of determining the period of limitation on credit or refund, shall be applicable in determining the date of payment for purposes of subsection (a) of this section.
Income tax refund within 45 days of due date of tax
(e) If any overpayment of tax imposed by the Virgin Islands income tax law is refunded within 45 days after the last date prescribed for filing the return of such tax (determined without regard to any extension of time for filing the return), no interest shall be allowed under subsection (b) of this title on such overpayment.
Refund of income tax caused by carryback
(f) For purposes of subsection (a) of this section, if any overpayment of tax imposed by the Virgin Islands income tax law results from a carryback of a net operating loss, such overpayment shall be deemed not to have been made prior to the close of the taxable year in which such net operating loss arises.