The Virginia Department of Taxation recently announced a new electronic filing requirement for pass-through entities (PTEs) required to file Form 502 (Pass-through Entity Return of Income and Return of Nonresident Withholding Tax). The requirement goes into effect Jan.1, 2015 and applies to all PTE returns and payments for taxable year 2014 and later.

 

Please note: The eFile requirement applies to all PTEs required to file Form 502, regardless of whether they owe a balance of tax with their returns.

 

To help taxpayers file returns and make payments electronically, the department now offers several new PTE eForms on its website:

• eForm 502EZ (Short Return of Income and Return of Nonresident Withholding Tax): A return for eligible taxpayers to file Form 502 and required VK-1 (Owner's Share of Income and Virginia Modifications and Credits) statements. Taxpayers may also make a return payment if they compute an amount due with their return.
• eForm 502W (PTE Withholding Payment): An eForm voucher for PTE taxpayers who need to make an extension payment towards the withholding due for nonresident owners of the PTE.
• eForm 502V (PTE Payment Voucher): An eForm voucher for taxpayers who have filed Form 502 and need to make a return payment. 

All eForm options are free, available 24/7 and do not require registration or login credentials.

PTEs may also file and make return payments electronically using commercial eFile software. Check out a description of commercial eFile software, a list of approved software products, information about making payments by direct debit, and more at the PTE eFile page.

PTEs that are unable to file and pay electronically should request a waiver. For additional questions or assistance, please call Customer Services at (804) 367-8037, Monday through Friday, 8:30 a.m. to 5 p.m.

Pass-through entity returns (Form 502) are due on or before Dec. 15, 2014 from:

• Fiscal year filers whose taxable year ends on Aug. 31, 2014.
• Fiscal year filers whose taxable year ends on Feb. 28, 2014 and who are filing under Virginia's automatic six-month extension.

Virginia Automatic Extension Reminder: Virginia law provides for an automatic six-month extension from the original due date for filing. 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 pass-through entity filing extensions and penalties visit the Department of Taxation's Pass-through Entity web page. 

 

Remember: It's 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.

Pass-through entity returns (Form 502) are due on or before Nov. 15, 2014 from: 

• Fiscal year filers whose taxable year ends on July 31, 2014.
• Fiscal year filers whose taxable year ends on Jan. 31, 2014 and who are filing under Virginia's automatic six-month extension

For details regarding pass-through entity filing extensions and penalties, visit the Department's Pass-Through Entity web page.

Corporate Income Tax returns (Form 500) are due electronically on or before November 15, 2014 from:

• Fiscal year filers whose taxable year ends on July 31, 2014,
• Fiscal year filers whose taxable year ends on January 31, 2014 and who are filing under Virginia's automatic six-month extension. 

Live Chat will no longer be available after Dec. 31, 2014 due to required budget reductions at the Virginia Department of Taxation. 

For assistance, please call our Customer Support Center, Monday through Friday from 8:30 a.m. to 5 p.m. at (804) 367-8031 for individuals, (804) 367-8037 for businesses or (804) 367-8045 for collections.

 

You may also send us a secure email for matters that are not time sensitive. For more information, see Contact Us on our website. 

On October 6, 2014, the United States Supreme Court denied certiorari in the case from the Fourth Circuit Court of Appeals that recently held that Virginia's ban on same-sex marriage is unconstitutional.  Accordingly, same-sex marriages that are recognized for federal income tax purposes will now be recognized for Virginia income tax purposes.

 

As a result, same-sex couples who are legally married under state law may file joint Virginia income tax returns, and compute items on their Virginia income tax returns as married individuals.  Alternatively, such couples may file their Virginia income tax returns as married couples filing separately. Tax Bulletin 14-7 supercedes Tax Bulletin 13-13.

 

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.

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.

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. 

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.

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.