New requirements in Virginia for filing and sending certain tax payments electronically

Author: Katherine Nixon, CPA, EA, Tax Senior Associate The Virginia Department of Taxation has begun mailing notices to potentially affected individual taxpayers regarding new requirements to file and remit certain tax payments electronically. Beginning January 1, 2017, any of the following individual taxpayer situations will require compliance with this new rule:

• Any installment payment of estimated tax in excess of $15,000;
• Any extension payment in excess of $15,000; or
• Total estimated tax due in any taxable year exceeds $60,000

Additionally, beginning January 1, 2018, all Estates and Trusts will be required to use an acceptable electronic filing and electronic payment method for submitting estimated tax payments, an annual income tax return, and a final payment. It is noteworthy, though, that the Tax Commissioner has the authority to waive the electronic filing/payment requirement if he finds that the requirement creates an unreasonable burden on the person required to use an electronic medium.  All requests for waiver must be submitted in writing to the Tax Commissioner. The Virginia Department of Taxation has made it fairly easy to comply with the new electronic payment requirements.  Please note that you will need your most recently filed return on hand to register. Additional resources:

• Virginia Department of Taxation “Make a Payment” website
• Virginia Department of Taxation Individual Estimated Tax Payments Guide
• Full text for Item 275 of Budget Bill – HB1500 (Chapter 836) 

Questions on this topic? Contact your Keiter representative or 804.747.0000 | Email.