VA Tax News

  • 06 Feb 2013 1:11 PM | Anonymous

    Quarterly Sales Tax filers will be required to file and pay Retail Sales and Use Tax (ST-9 and ST-9CO) electronically beginning with the July - September 2013 return, due October 20, 2013.  Taxpayers who are unable to file and pay electronically by the effective date may request a hardship waiver.

     

    Please review the Department's various electronic filing options for submitting return and payment information now before the requirement goes into effect. Returns and payments can be filed electronically using eForms, Business iFile or Web Upload.

  • 06 Feb 2013 1:10 PM | Anonymous

    Taxpayers who claim the Virginia Telework Expenses Tax Credit are not allowed to exclude those expenses from Virginia Income. To the extent excluded from federal taxable income, any expenses incurred by a taxpayer in connection with the Telework Expenses Tax Credit must be added to the Virginia return.

  • 06 Feb 2013 1:09 PM | Anonymous

    The Telework Expenses Tax Credit is a new individual and corporate income tax credit for employers who incur eligible telework expenses pursuant to a telework agreement or conduct telework assessments. Taxpayers are required to apply to the Department of Taxation between September 1 and October 31 of the year proceeding the taxable year for which the tax credit is earned to reserve a portion of the credit. To qualify for a credit, the employer must enter into a signed telework agreement with the teleworking employee on or after July 1, 2012, but before January 1, 2017. This telework agreement must be in accordance with policies set by the Department of Rail and Public Transportation (DRPT) which are available on the Telework!VA website at www.teleworkva.org.

    For details on this new credit and modifications to existing credits, see What's New for Tax Credits.

  • 06 Feb 2013 1:09 PM | Anonymous

    Virginia's date of conformity with the Internal Revenue Code (IRC) was advanced from December 31, 2010, to December 31, 2011, with limited exceptions. Virginia will continue to disallow federal income tax deductions for the 30% and 50% bonus depreciation allowed for certain assets and the five-year carryback of federal net operating loss deductions generated in taxable years 2008 or 2009. Also, Virginia will continue to disallow the income tax deductions related to applicable high yield discount obligations under IRC § 163(e)(5)(F). In addition, fixed date conformity adjustments continue to be required for Cancellation of Debt Income under IRC § 108(i), and the domestic production deduction under IRC § 199.

    At the time the instructions went to print, the only required adjustments for "fixed date conformity" were those mentioned above. However, if federal legislation is enacted that results in changes to the Internal Revenue Code for the 2012 taxable year, taxpayers will be required to make adjustments to their Virginia returns that are not described in the instruction booklet. Information about any such adjustments will be posted on the Department's website at www.tax.virginia.gov.

  • 06 Feb 2013 1:08 PM | Anonymous

    For taxable years beginning on or after July 1, 2012, but before July 1, 2014, retail companies are required to determine their Virginia taxable income by using an apportionment formula with a triple-weighted sales factor.  A single sales factor apportionment formula will be phased in over a three-year period beginning as a triple-weighted sales factor, followed by a quadruple-weighted sales factor, and then a single sales factor for taxable years beginning on and after July 1, 2015. 

  • 06 Feb 2013 1:07 PM | Anonymous

    The 2012-2014 Appropriations Act Item (273 of HB 1301 - Acts of Assembly 2012 Special Session I, Chapter 3) requires all corporations to file their estimated tax payments, annual income tax returns and final payments electronically beginning January 1, 2013.  This includes Taxable Year 2012 returns, tax due payments, extension payments and Taxable Year 2013 estimated payments.

    • The annual corporate income tax return must be filed through the Federal/State e-File program, which is supported by numerous commercial software applications. For a list of approved commercial e-File software and more information, visit the Department's Corporate Income Tax page.
    • Tax due payments can be made through the e-File system as a direct debit or by an ACH Credit transaction initiated through the corporation's bank.
    • The Department provides two secure online options for electronically submitting estimated and extension payments, e-Forms and Business iFile. For more information and to determine the method that works best for you visit "Estimated and Extension Payments" on the Corporate Income Tax page of the Department's website.  Estimated tax payments and extension payments can also be submitted by an ACH Credit. 

    Tax preparers who are unable to meet these requirements by the effective date may request a hardship waiver on behalf of any affected client.  In cases involving multiple clients, the preparer can submit one Waiver Request Form for all of the affected clients by attaching a list of the corporations' Names and FEINs, and indicating whether the preparer has a Power of Attorney on file with the Department of Taxation for each client. 

  • 04 Feb 2013 2:15 PM | Anonymous
    In response to recent action by the IRS, Virginia is providing relief from the estimated tax underpayment penalty for farmers, fishermen, and merchant seamen who are unable to file and pay their 2012 taxes by the March 1 deadline. In order to receive an automatic waiver of the estimated tax underpayment penalty, farmers, fishermen and merchant seamen must file their returns and pay the entire tax due by April 15, 2013.
  • 30 Jan 2013 2:55 PM | Anonymous

    RICHMOND - The Virginia Department of Taxation has been alerted to a phone scam related to the new Virginia Tax Refund Debit Card.

     

    The Department has received reports of phone calls being made to individuals, telling them that their "Way2Go prepaid MasterCard is locked for security reasons."  The automated caller then tries to get the listener to divulge personal information.

     

    This is a phone scam.  The Department never makes automated calls and never solicits personal information in this manner.  If you receive such a call, hang up immediately.  If the call is recorded as a voice mail, delete it.

     

    The Department goes to great lengths to protect the confidentiality and privacy of taxpayer information.  This scam is not related in any way to the security of the new tax refund debit card or any information that taxpayers may submit to the Department.  The Department cautions individuals never to give personal information to anyone calling unless they can verify the source.

     

    A division of Xerox Corp. administers the new Virginia Tax Refund Debit Card and refers to it as the "Way2Go" card.

     

    The Department is working with other government agencies, law enforcement, the debit card vendor, and the telephone companies involved to try and end the phone scam.  

     

    If you have questions, please contact the agency's Customer Services Department at (804) 367-8031.
  • 30 Jan 2013 1:11 PM | Anonymous

    If you aren't already, please consider taking advantage of the following resources/tools available to you:

     

    Tax Professionals Hotline (804) 367-9286 - Open Monday through Friday, 8:30 AM to 4:30 PM to provide quick responses to your inquiries about client accounts or other tax questions for any tax type administered by the Department.

     

    Tax Professionals Page on the Department's website - Provides electronic filing information, early release forms, instructional materials, and special contact information.

     

    Laws, Rules and Decisions Page on the Department's website - Offers a variety of information, from Tax Bulletins to Legislative Summaries, to Rulings of the Commissioner.  This is a great tool for researching the latest interpretations of Virginia tax law.

     

    Other website features and services you may find helpful are the Department's "What's New" pages for both individual and business tax types, tax forms, the Department's online filing and secure messaging services, and agency publications, just to name a few.   

  • 28 Jan 2013 2:55 PM | Anonymous
    Beginning with the 2008 calendar year, the $100 million cap for the Land Preservation Tax Credit must be increased annually to account for inflation.  For the 2013 calendar year, the cap for the Land Preservation Tax Credit will be increased to $113,909,000. Tax Bulletin 13-1 explains the new cap amount for the 2013 calendar year.

    To view the details of this Tax Bulletin, click here.

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