VA Tax News

  • 31 Jul 2014 8:42 AM | Anonymous

    Virginia's popular back-to-school sales tax holiday for clothing, footwear and school/office supplies begins Friday, Aug. 1, and runs through Sunday, Aug. 3.

    This is the ninth year for the three-day event, during which most school supplies that cost $20 or less each, as well as clothing items and pairs of shoes priced at $100 or less each will be exempt from Virginia's 5.3 percent state and local sales tax. You'll save even more in most Northern Virginia and Hampton Roads localities, where the sales tax is 6 percent. For example, if you spend $500 on qualifying items during the sales tax holiday, you'll save $26.50 on exempt purchases. You'll save $30 in Northern Virginia and Hampton Roads.

    The list of tax-exempt items is the same as last year. It includes, for example, pens, pencils, loose leaf ruled notebook paper, scissors, binders, backpacks, construction paper, sneakers, hats, shirts, dresses, jeans, bathing suits, diapers, T-shirts, and many other items. There is no requirement that the purchases be made for school purposes. All retailers who sell the exempt items are required to participate.

    The tax-exempt items are available to anyone shopping in the state, and there is no limit on the number of products you can buy tax-free as long as each one qualifies under the guidelines.

    If you can't get out to the stores, but still want to shop and save, online purchases of qualifying items are also tax-exempt during the sales tax holiday.

    During this sales tax holiday, retailers may also choose to save taxpayers even more money by absorbing, or paying themselves, the sales tax on items that are not eligible for exemption. In past years, many stores have taken advantage of this opportunity and some have sold everything in their stores tax-free.

    An all-inclusive list of school supplies, a list of exempt clothing and footwear items, guidelines for shoppers and retailers, and answers to frequently asked questions are available on the Department of Taxation's Sales Tax Holiday Information Center.

  • 28 Jul 2014 3:51 PM | Anonymous

    The due date for filing the Employer's Annual or Final Summary of Virginia Income Tax Withheld return (Form VA-6), Household Employer's Annual Summary of Virginia Income Tax Withheld return (Form VA-6H), and required wage statements (Forms W-2 and 1099) has been changed from February 28 to January 31. 

    By law, a return due on a Saturday, Sunday, or legal holiday becomes due the next business day. Because January 31, 2015 is a Saturday, the actual due date for the 2014 annual withholding forms and wage statements described above will be Monday, February 2, 2015.

    The Virginia General Assembly approved the due date change during the 2014 session to allow for faster and more secure processing of individual income tax refunds.

    Please note:  If a business closes its withholding tax account before the end of the year, the employer must file Form VA-6 or VA-6H and the required wage statements within 30 days of the last month in which wages were paid. Employers are required to submit all withholding returns and W-2 wage statements electronically.

    For electronic filing and payment options, please see the Department of Taxation's  Business Online Services page.


  • 24 Jul 2014 1:01 PM | Anonymous

    Under Va. Code § 58.1-339.4(E), the Qualified Equity and Subordinated Debt Investments Tax Credit is capped at $5 million annually.  However, beginning with Taxable Year 2006, budget actions have imposed a lower tax credit cap for certain taxable years.  For Taxable Year 2013, the tax credit cap was limited to $4.5 million.  Under the amended budget bill for the 2012-2014 biennium (2014 House Bill 5001) and the budget bill for the 2014-2016 biennium (2014 House Bill 5002), the tax credit cap will increase to $5 million for Taxable Year 2014.  For taxable years after 2014, the tax credit cap will remain at the statutory cap of $5 million.

    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) 404-4163.

  • 10 Jul 2014 2:11 PM | Anonymous
    The Virginia Department of Taxation's Walk-In Customer Service Center in Richmond is now closed.

    For assistance, taxpayers can speak with Customer Services representatives from 8:30 a.m. to 5 p.m., Monday through Friday, at the following phone numbers:

    Individual: (804) 367-8031
    Business: (804) 367-8037

    Live Chat service is available during the same hours. Taxpayers can also ask questions using secure email.

    Payments can be made at the Cashier's Office, located at 1957 Westmoreland Street in Richmond, from 8:30 a.m. to 5 p.m., Monday through Friday.

    More contact information is available here.


  • 04 Jun 2014 1:02 PM | Anonymous

    The Virginia Cooperative Extension is recruiting professionals to volunteer as Master Financial Educators in Arlington and the City of Alexandria. Would ASV be willing to share our volunteer recruitment drive with your Northern Virginia members? 

    We will have mandatory volunteer training sessions on Saturday Sept. 6 and Saturday Sept. 13 from 10 a.m.-4 p.m. at the Fairlington Community Center Room 100, 3308 S Stafford Street in Arlington.

    Master Financial Education Volunteers provide valuable services such as:

    -- One-on-one financial counseling with clients who range from young professionals to senior citizens

    -- Financial management classes on topics including spending and saving

    -- Financial education for children, including financial simulations for elementary and middle school-aged children

    -- Tax clinics for low-income individuals

    -- Create your own financial education program

    The Extension has a strong need of Spanish-speaking volunteers.

    To learn more about volunteering with Extension, or to sign up for the September training, please contact Megan Kuhn at megan81@vt.edu or call 703-228-6421.

  • 08 May 2014 8:06 AM | Anonymous

    The Department of Taxation ("the Department") has published updated Accelerated Sales Tax Guidelines.   The updated guidelines supersede any prior guidelines that were published by the Department.

    Effective beginning with the accelerated sales tax payment due in June, 2014, House Bill 1500 (Acts of Assembly 2013, Chapter 806) and House Bill 5001 (Acts of Assembly 2014 Special Session I, Chapter 1) increase the threshold for the 2014 accelerated sales tax payment to taxable sales and/or purchases of $48.5 million or greater in the previous fiscal year.  Dealers and direct payment permit holders ("Dealers") meeting this threshold are required to make an accelerated sales tax payment in June equal to 90 percent of their Retail Sales and Use Tax liability for June of the previous year.

     

    The Guidelines for the Accelerated Sales Tax Payment have been updated to reflect the increased threshold and payment dates for 2014.  The full text of the Guidelines are available here and in the Laws, Rules & Decisions section of the Department's website as Public Document 14-58.  The Department has mailed notification letters to all affected dealers.  More information on the Accelerated Sales Tax can be found on the Department's website at www.tax.virginia.gov

     

    Where to Find the Published Guidelines 

    The guidelines have been published on the Laws, Rules and Decisions section of the Department's website and on the Virginia Regulatory Town Hall website

  • 09 Jan 2014 5:04 PM | Anonymous

    The Virginia income tax treatment of same-sex marriage may impact the fringe benefit business deductions of certain corporations, pass-through entities, and sole proprietorships. See the Department's website for details.

  • 09 Jan 2014 5:03 PM | Anonymous

    Corporation Income Tax returns (Form 500) are due electronically on or before Jan. 15, 2014from:

    • Fiscal year filers whose taxable year ended on Sept. 30, 2013.
    • Fiscal year filers whose taxable year ended on March 30, 2013 and who are filing under Virginia's automatic 6-month extension.

    Virginia Automatic Extension Reminder:

    Virginia law provides for an automatic 6-month extension from the original due date for filing. In order to take advantage of the automatic extension, the return must be filed on or before the end of the extension period. Please note: The automatic extension does not allow for additional time to pay any balance of tax due. Penalty and/or interest may apply to returns with a tentative tax due that was not paid by the original due date for filing the return. Also, the extension penalty may apply to returns that were filed during the extension period if less than 90 percent of the return's total tax liability was paid by the original due date.

     

    For details regarding Corporation Income Tax extensions and penalties or for information on

    how to file and pay electronically, visit the Department's Corporation Income Tax web page. Additional electronic filing information is posted on the Department's Corporate e-File web page.

     

    Electronic Filing Mandate Reminder: All taxpayers that are subject to the Corporation Income Tax must file their estimated tax payments, annual income tax returns, and final payments electronically. This includes taxable year 2012/2013 returns, tax-due payments, and extension payments, as well as taxable year 2013/2014 estimated payments. Taxpayers subject to the Corporation Income Tax that are seeking a waiver of the requirement to file and/or pay electronically due to undue hardship should submit the Virginia Corporation Electronic Filing Waiver Request form.

     

    Remember: It is very important that the Department maintains accurate information regarding taxpayer businesses. Many tax account updates can be performed through the Department's Business iFile system. Visit the Online Services FAQ web page for information on what updates taxpayers can make through Business iFile
  • 13 Sep 2013 11:23 AM | Anonymous

    Employers who file and pay Withholding Tax in Virginia are now required to do so electronically. To help customers meet the electronic filing mandate, the Department created an informational YouTube video and a demo presentation to explain the requirements and the free online systems available 24/7 for our customers.

     

    Want a general overview of the mandate and available electronic filing methods? Watch the File and Pay Withholding Tax Electronically video to help choose the option that best meets your needs.

     

    Have you already chosen an electronic filing method, but are confused on how to use it? View the demo presentation for a walkthrough of the available filing options.
  • 05 Sep 2013 8:55 AM | Anonymous

    All taxpayers subject to the Corporation Income Tax must file their estimated tax payments, annual income tax returns, and final payments electronically.  This includes Taxable Year 2012 returns, tax payments, and extension payments, as well as Taxable Year 2013 estimated payments. For information on how to file and pay electronically, see the Department's Corporate e-File and Corporation Income Tax pages.  

     

    Please note: Taxpayers subject to the Corporation Income Tax that are seeking a waiver of the requirement to file and/or pay electronically due to undue hardship should submit the recently updated

    Virginia Corporation and Pass-Through Entity Electronic Filing Waiver Request Form.

    Corporation Income Tax returns for the taxable year ending on May 31, 2013, must be filed on or before September 16, 2013 Virginia law also provides for an automatic six-month extension of time to file. However, the extension does not allow for additional time to pay any balance of tax due. Penalty and/or interest may apply to returns with a tentative tax due that was not paid by the original due date for filing.

     

    The automatic six-month extension to file Corporation Income Tax returns for the taxable year ending on November 30, 2012, ends on September 16, 2013.   In order to take advantage of Virginia's automatic extension, the return must be filed on or before the end of the extension period.  Please bear in mind that the extension 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. For more details regarding Corporation Income Tax extensions and penalties, visit the Department's Corporation Income Tax page.

     

    Remember: it is very important that the Department maintains accurate information regarding taxpayer businesses. Many tax account updates can be performed through the Department's Business iFile system. Visit the Online Services FAQ for information on what updates taxpayers can make through Business iFile. 


    Common Corporation Income Tax Filing Errors

    Below are some of the more common problems that the Department encounters with corporation income tax returns. 

    • Use the proper return based on the entity type.  Corporations should file Form 500 whereas pass-through entities should file Form 502. Also, choose the correct year's form for the return being submitted.  All forms and instructions, including those for prior taxable years, are located on the Department's website.
    • Always notify the Department and the State Corporation Commission of any corporate name changes. If a corporation's name has changed from the name used on the last return filed, please check the "Name Change" box on the return to notify the Department.
    • If a corporation's physical address or mailing address is different from the address used on the last return filed, please check the applicable "Address Change" box.
    • Please be sure to verify that a corporation's nine-digit Federal Identification Number ("FEIN") was entered correctly on the return and that it is the correct number that was assigned to the corporation.
    • If your client has an electronic filing waiver and are submitting a paper tax return, ensure that the front and back pages are both sent (even if there are no entries on the back page). Also be sure that all required schedules are attached to the return.
    • If your client claims an addition, subtraction, or deduction please be sure to enter any required codes on the Schedule ADJ.
    • If your client claims an item requiring you to submit additional supporting documentation, such as tax-credit certificates or statements, please be certain that the documentation is attached to the return.
    • If estimated payments or extension payments are claimed on the return, please verify the amount of estimated or extension payments made during the year before filing the return.
    • If the Corporation Income Tax return that you are submitting is a "final return," do not request an overpayment credit.  Request a refund instead.
©2018, Virginia Society of Tax & Accounting Professionals, formerly The Accountants Society of Virginia, 
is a 501(c)6 non-profit organization.

PO Box 3363 | Warrenton, VA 20188 | Phone: (800) 927-2731 | Fax: (888) 403-0920 | asv@virginia-accountants.org

Powered by Wild Apricot Membership Software