Virginia Tax Payments – Interest Waived in Certain Cases

Virginia General Assembly Approves Amendments on Certain Tax Payments

Yesterday, the General Assembly at its Reconvened Session approved Governor Northam’s amendments to the state’s budget to waive interest on certain tax payments to assist Virginia taxpayers impacted by the coronavirus.

• Virginia Income Tax Payments

  The waiver of interest applies to those payments made by individuals, estates and trusts, and corporations due between April 1, 2020, and June 1, 2020, including first quarter estimated payments. It does not apply, however, to estimated payments for the second quarter which are still due June 15, 2020. Previously it was announced that penalties would be waived on payments made by June 1, 2020, (Virginia Tax Bulletin 20-4).

All income tax filing deadlines remain the same, including the May 1, 2020, due date for individuals and estates and trusts. Virginia does allow an automatic six-month extension to file (seven months for certain corporations). Extension payments may be made by June 1, 2020, without incurring interest. To clarify:  No 2019 extension is required to be filed for Virginia, but any 2019 extension payment and/or Q1 2020 estimated tax payment must be made by June 1, 2020.

• Virginia Sales Tax Payments due March 20, 2020

  Previously, the Department of Taxation agreed to waive late filing penalties for sales/use tax payments originally due on March 20, 2020, but paid by April 20, 2020, if the taxpayer requested such penalty waiver. With the Governor’s amendment, interest will be also be waived on those March 20, 2020, payments made by April 20, 2020.

Questions on local tax changes that may impact your business? We can help. Contact your Keiter representative or our State and Local tax team. Email | 804.747.0000