Filing Reminders for Corporation Tax Clients

Corporation income tax returns for the taxable year ended August 31, 2011 are due to be filed by December 15, 2011.  For fastest and easiest filing, use Corporate Income Tax eFile to file your client’s return.

Remember, even though Virginia law provides for an automatic six-month filing extension, that extension does not apply to tax payments.  To avoid penalties, be sure your clients pay at least 90 percent of their tax liability by December 15, 2011. 

A reminder for your corporation tax clients whose taxable year ended February 28, 2011:  the extended filing date is coming up soon!  Return and payment for any tax due must be filed by December 15, 2011. 

For complete information on corporation income tax filing and payment requirements, see the instructions for Form 500 on our website. 

The final Corporation Estimated Income Tax Payment for calendar year 2011 filers is also due December 15, 2011.  For more information about Corporate Estimated Payments, see TAX’s Corporate Income Tax information.  

Paying an extension payment or estimated income tax using our free online Business iFile system is the fastest and most efficient way.

Correct Reporting of VK-1 Amounts Withheld

Are you a tax preparer who handles Virginia Individual Income tax filings that include information from the form VK-1?  If so, the Virginia Department of Taxation would like to clarify how to report the amount listed as withheld for the owner included on that form.

Income tax deducted from wage, salary or other payments and paid to the Department of Taxation on behalf of the recipient is referred to as income tax withheld, or withholding tax.  Typical withholding tax documents include Forms W2 or 1099.  VK-1 statements issued by a business that reflect amounts other than zero on line e. “Amount Withheld by PTE for Owner” should be treated in the same manner as W2s/1099s with regard to reporting the amounts of tax withheld.  Copies of VK-1 statement information should also be submitted with any tax return claiming VK-1 withholding.

The Department of Taxation receives many income tax returns that list VK-1 withholding as estimated tax payments, extension payments, etc.  Returns prepared this way may prompt adjustments to the returns or requests for additional documentation to correct them.  For specific line information, please consult the instructions for your form type or contact our Customer Service office for assistance.

QuickPay: A Convenient & Free Way to Pay Your Tax Bills

QuickPay is a free and secure online bill-paying service offered by the Virginia Department of Taxation. All bills issued by the agency may be paid using QuickPay with the exception of those currently under bankruptcy or appeal. 

Payments may be made by Electronic Funds Transfer (EFT) for individual or business tax bills using funds from either a checking or savings account. QuickPay also allows your clients to check their bill balance(s) and review QuickPay payment history for up to two years. 

To use QuickPay, go directly to QuickPay or visit our website.  Once at the QuickPay login, enter the five digit bill number of the bill being paid from the most recent bill statement, along with either the nine-digit SSN for an individual tax bill, or, for a business tax bill, the 15-digit Virginia account number.

State Office Closings for This Month

State offices, including the Department of Taxation, will be closed Friday, Dec. 23, and Monday, Dec. 26, in observance of the Christmas holiday.

If you need to contact the Department, please plan to do so at other times. Normal business hours and contact information can be found here.

Need More Information?

For more information on any of the topics in this message, please visit our website at http://www.tax.virginia.gov.

The Department of Taxation would like to wish all Virginia tax professionals a very happy holiday season and a wonderful 2012!