VA Tax News

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  • 27 Jun 2017 11:53 AM | Anonymous

    The Virginia Board of Accountancy (VBOA) announced a major update involving individual and firm licenses and their expiration date. The Virginia Society of CPAs (VSCPA) and the VBOA have agreed that this change requires an update to the 2017 Virginia-specific Ethics course. To that end, the VSCPA is working diligently to incorporate the change as quickly as possible into the course.

    On Friday, July 7, you will receive a new PowerPoint that will include a new introductory video with an explanation of the change that takes place on July 1, 2017. Additionally, you will also receive a one-page handout that should be given to your CPE takers in addition to the current manual. We also recommend that you reach out to your previous Ethics takers who have taken classes prior to this change to make them aware.

    Starting July 1, 2017, the additional 12-month period for late renewals ends. Unrenewed licensees will automatically go into Expired status the day after the renewal is due.

  • 06 Feb 2017 4:58 PM | Anonymous

    Under emergency legislation (House Bill 1521; Chapter 1 of the 2017 Acts of Assembly) passed by the 2017 General Assembly and signed by Governor McAuliffe on February 3, 2017, Virginia's fixed-date of conformity to the terms of the Internal Revenue Code will advance from December 31, 2015, to December 31, 2016.  Tax Bulletin 17-1 provides taxpayers with directions on how to reconcile this legislation with their 2016 Virginia income tax returns.  This legislation allows Virginia to conform to federal tax legislation enacted during 2016 that would impact the filing of Virginia income tax returns, including the United States Appreciation for Olympians and Paralympians Act of 2016.

    Virginia will continue to disallow federal income tax deductions for bonus depreciation allowed for certain assets under Internal Revenue Code (“IRC”) §§ 168(k), 168(l), 168(m), 1400L and 1400N; the five-year carryback of federal net operating loss deductions generated in Taxable Year 2008 or 2009; federal income tax deductions for applicable high yield discount obligations under IRC § 163(e)(5)(F); and federal income tax exclusions related to cancellation of debt income realized in connection with a reacquisition of business debt at a discount after December 31, 2008, and before January 1, 2011.

    Tax Bulletin 17-1 can be found on the Department’s website by clicking here.

    If you have questions, please call our Customer Contact Center at (804) 367-8037. 
  • 26 May 2016 11:10 AM | Anonymous

    The 2016 Legislative Summary has been released.  The full text of the Legislative Summary can be found on the Department's website in the "Facts and Figures" section or by clicking here

    The Legislative Summary is published by the Department of Taxation as a convenient reference guide to state and local tax legislation enacted by the 2016 Session of the General Assembly, including the reconvened session on April 20, 2016.  Please note that any legislation enacted after this date is not included.  The Summary includes a general description of enacted legislation affecting:

    • State taxes administered by the Department, and
    • Local taxes for which the Department assists with administration or on which the Department renders advisory assistance.

    References to chapter numbers are to the corresponding chapters in the Acts of Assembly, which may be viewed at: http://lis.virginia.gov.  Effective dates of the legislation vary and are set out in each description.

    In general, legislation affecting taxes administered by other state agencies is not included in the Summary.

    The Summary is intended to provide a synopsis of enacted legislation and is for informational purposes only.  The Summary is not a substitute for the actual state law, local ordinances, or tax related regulations. 

    To view the full text of the Legislative Summary, click here. 

    If you have additional questions, please visit the Department's website at http://www.tax.virginia.gov, or contact the Department at (804) 367-8031 for individual income tax questions or (804) 367-8037 for business tax questions.


  • 18 May 2016 2:45 PM | Anonymous

    Our Customer Services Walk-In Center, located at 1957 Westmoreland St. in Richmond, will close for the 2016 individual income tax filing season on Friday, May 27. Until then, the center is open 8:30 a.m. to 5 p.m., Monday through Friday. For walk-in assistance, please arrive no later than 4:30 pm. 

    The Cashiers' Office at the same location is open year-round to receive tax payments, sell tobacco stamps, and receive tax returns.

    To get help by phone year-round, call our Customer Contact Center, 8:30 a.m. to 5 p.m., Monday through Friday.

    • Individual income taxes: (804) 367-8031
    • Business taxes: (804) 367-8037
  • 04 May 2016 8:57 AM | Anonymous

    Effective April 22, 2016, dealers are no longer required to collect sales and use tax on prepared meals, catering, and labor related to preparing and serving food purchased by nonprofit organizations, churches, state agencies, and local governments that have Virginia sales tax exemption certificates and meet certain requirements. 

    In order for the purchases to qualify for the exemption, the nonprofit organization, church, or government entity must demonstrate all of the following:

    • The provision of prepared meals, catering, and related services supports a function, mission, service, or purpose of the organization.
    • The charge for prepared meals, catering, and services is billed to and paid for by the organization claiming the sales tax exemption.
    • The organization that claims the exemption controls when, how, and who consumes the prepared food or catered meals.   

    The Department of Taxation is not issuing new nonprofit exemption certificates at this time. New certificates will be issued when organizations renew their sales tax exemption. Instead, the department is sending letters explaining this policy change to all organizations holding department-issued nonprofit exemption certificates.

    Organizations should provide the letter along with their exemption certificate when purchasing prepared meals, catering, or related services from dealers. 

    For more information, see Tax Bulletin 16-3 “Important Information Regarding Meals and Catering Purchased by Nonprofit Organizations, Churches, and Governmental Entities” on the department’s website. 

    If you have questions, please call our Customer Contact Center at (804) 367-8037 or our Nonprofit Exemption Unit at (804) 371-4023. 
  • 07 Mar 2016 2:11 PM | Anonymous

    The Virginia Department of Taxation is sending “Review of Tax Return” letters (AUIN073A RAP Additional Review) to some taxpayers to verify withholding information. Because of the increase in identity theft and refund fraud, we’re taking extra precautions this year to validate the refund returns we process.  

    Processing of tax returns could take longer as we work to protect taxpayer information and ensure that taxpayers receive the state income tax refunds to which they are entitled.

    We understand that taxpayers may be concerned if they receive a Review of Tax Return letter. Receiving the letter does not mean they are victims of identity theft or that their returns contain errors or missing data. It just means that their returns were stopped for review. 

    If your clients receive this letter, they should read it carefully to determine what action they might need to take.

    Please let your clients know the following:  

    • If they did not submit an individual income tax return, they should check where indicated in the first paragraph of the letter and return it using the fax number or address provided.
    • If they did file a return, they should follow the instructions in the letter and submit all requested documents as soon as possible by fax or mail. We will continue processing returns once we receive all requested documents and confirm that their returns are correct. Please allow 7 business days for us to receive the documents. 
    • If they filed a return and already received their refunds, or receive one before sending us the requested information, we were able to verify their returns through other means. We no longer need documentation from them, and they may disregard the letter.

    We’re asking taxpayers for their patience during the filing season. We take identity theft and tax refund security seriously and must take the time necessary to verify that the refunds we're processing are correct. It could take 8-10 weeks after submitting all requested documents for taxpayers to receive their refund. If it’s been longer than this, please have them contact us.

    We encourage you and your clients to visit Understanding your Review of Tax Return Letter (AUIN073A RAP Additional Review) on our website to learn more about this letter and the review process.  


  • 08 Feb 2016 8:18 AM | Anonymous

    Governor McAuliffe Signs Bill 

    Advancing Date of Income Tax Conformity 

    to December 31, 2015 


    Conformity to the Internal Revenue Code for Taxable Year 2015

    Under emergency legislation (House Bill 402; Chapter 2 of the 2016 Acts of Assembly) passed by the General Assembly and signed by Governor McAuliffe on February 5, 2016, Virginia's fixed-date of conformity to the terms of the Internal Revenue Code ("IRC") will advance from December 31, 2014 to December 31, 2015. Tax Bulletin 16-1 provides taxpayers with directions on how to reconcile this legislation with their 2015 Virginia income tax returns. This legislation allows Virginia to conform to federal tax legislation enacted during 2015 that would impact the filing of Virginia income tax returns, including the Protecting Americans from Tax Hikes Act of 2015.

    Virginia will continue to disallow federal income tax deductions for bonus depreciation allowed for certain assets under Internal Revenue Code §§ 168(k), 168(l), 168(m), 1400L and 1400N; the five-year carryback of federal net operating loss deductions generated in Taxable Year 2008 or 2009; federal income tax deductions for applicable high yield discount obligations under IRC § 163(e)(5)(F); and federal income tax exclusions related to cancellation of debt income realized in connection with a reacquisition of business debt at a discount after December 31, 2008, and before January 1, 2011.

    To view the full text of this tax bulletin, click here.

    If you have additional questions, please visit the Department's website at http://www.tax.virginia.gov, or contact the Department at (804) 367-8031 for individual income tax questions or (804) 367-8037 for corporate income tax questions.


  • 14 Dec 2015 8:24 AM | Anonymous

    It's time to file!

    Corporation Income Tax returns (Form 500) are due electronically on or before Dec. 15, 2015 from:

    • Fiscal year filers whose taxable year ends on Aug. 31, 2015.
    • Fiscal year filers whose taxable year ends on Feb. 28, 2015 and who are filing under Virginia’s automatic six-month extension. 

    Virginia Automatic Extension: Virginia grants an automatic six-month extension from the original due date to file Form 500. However, the extension doesn't allow for extra time to pay any taxes that are owed. Corporate taxpayers should pay any tentative tax due using Form 500CP (Virginia Automatic Extension Payment) when the return is due. Penalty and/or interest may apply if the tentative tax due wasn't paid by the original date the return was due. A penalty may apply to returns filed during the extension period if less than 90 percent of the return's total tax liability was paid by the original due date.  

    Electronic Filing Mandate:  All corporations are required to file estimated tax payments, annual income tax returns and final payments electronically. If this requirement causes undue hardship, you may request a waiver by submitting the Virginia Corporation Electronic Filing Waiver Request form. 

    For details regarding Corporation Income Tax extensions and penalties or for information on how to file and pay electronically, visit our Corporation Income Tax web page. 

    It’s very important that we maintain accurate information regarding your business. Please use our Business iFile to: 

    • Tell us if you close your business or a specific business location
    • Update your account with address or contact changes
    • Add a new tax to your account
    • Let us know you are no longer liable for a specific tax.  
  • 14 Dec 2015 8:22 AM | Anonymous

    It's time to file!

    Pass-Through Entity Return of Income and Return of Nonresident Withholding Tax (Form 502) is due on Dec. 15, 2015 from: 

    • Fiscal year filers whose taxable year ends on Aug. 31, 2015.
    • Fiscal year filers whose taxable year ends on Feb. 28, 2015 and who are filing under Virginia’s automatic six-month extension. 

    Virginia Automatic Extension: Virginia grants an automatic six-month extension from the original due date to file Form 502. However, the extension doesn't allow for extra time to pay any taxes that are owed. Taxpayers should pay any tentative tax due using Form 502W (Pass-Through Entity Withholding Tax Payment) at the time the return is due. Penalty and/or interest may apply if the tentative tax due wasn't paid by the original date the return was due. A penalty may apply to returns filed during the extension period if less than 90 percent of the return's total tax liability was paid by the original due date. 

    Reminder: All pass-through entities are required to file the annual income tax return and make all payments electronically.  If the electronic filing requirement causes undue hardship, taxpayers may request a waiver by submitting the Virginia Pass-Through Entity Electronic Filing Waiver Request form. 

    For details regarding extensions and penalties or for information on how to file and pay electronically, visit our Pass-Through Entity web page. 

    It’s very important that we maintain accurate information regarding your business. Please use our Business iFile to: 

    • Tell us if you close your business or a specific business location
    • Update your account with address or contact changes
    • Add a new tax to your account
    • Let us know you are no longer liable for a specific tax   
  • 03 Dec 2015 10:09 PM | Anonymous

    To protect the personal information of Virginia taxpayers who have been identified as potential victims of identity theft, the Virginia Department of Taxation is providing these individuals with personal identification numbers (PINs) to use when filing their Virginia individual income tax returns in 2016. 

    We are sending PINs to affected taxpayers in personalized letters through the U.S. mail in early December. Because some of these taxpayers may be your clients, you should be aware of the following information: 

    • You should ask all clients if they have been issued PINs from the Virginia Department of Taxation. These PINS are different than the IP PIN issued by the IRS or an electronic filing PIN. The PINs are not interchangeable. 
    • The PIN, in combination with the taxpayer’s Social Security number, serves as a unique identifier. Use the PIN on any individual income tax returns filed in 2016, including amended and prior year returns.
    • If you use tax software to prepare returns, you will be prompted to enter the PIN. If you use Virginia’s fillable form, enter the PIN in the Office Use box. If you file a paper return, enter the PIN on page 2 in the Office Use box.
    • If you are preparing a joint tax return and each spouse was issued a PIN, only one PIN needs to be provided on the return. Either of the spouse’s PINs will be acceptable. 
    • If the PIN is not provided on the return, processing of the return may be delayed. 
    • If a taxpayer forgets his or her PIN or loses the letter, he or she will need to call our Customer Contact Center at (804) 367-8031 to request a new PIN which will be provided by mail. Only the taxpayer or a representative who has a valid power of attorney (POA) from the taxpayer can request a replacement PIN. A tax preparer without a valid POA cannot request a replacement PIN. All replacement PINs will be mailed to taxpayers.
    • The PIN will be valid for one calendar year. New PINs will be issued in November or December each year. 
    • You should remind your clients not to share their PINs with anyone, except a tax professional filing their returns. 

    Only those taxpayers whom we have identified as victims of identity theft are eligible to receive PINs. At this time, we don’t have a process for other taxpayers to request PINs. We may consider expanding this effort during the 2017 individual income tax filing season. 

    If you have questions about the PIN process, please call the Tax Preparers’ Hotline at (804) 367-9286.


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