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.

-- 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 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. 

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.

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

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.

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. 

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.

Corporation Income Tax returns for the taxable year ending on March 30, 2013, must be filed on or before July 15, 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 September 30, 2012, ends on July 15, 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, the extension penalty may apply to returns filed during the extension period if 90 percent of the return's total tax liability was not 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.