VA Tax News

  • 20 Dec 2021 4:32 PM | Anonymous

    Important 1099 Forms Update

    IRS change impacts formatting of Forms 1099R, 1099 MISC, 1099 NEC, and 1099K 

    The IRS has added 2 new payment fields (fields 17 and 18) to the 1099 form. As a result, the position of several existing fields will change on the following forms: 

    • 1099R
    • 1099 MISC
    • 1099 NEC
    • 1099K

    We're following the IRS format, so please make sure to send us your files using the updated federal specifications (which you can find in our W2/1099 Guide for Web Upload). This change is retroactive, so if you are sending prior-year 1099s, you must use the new federal format.

    Questions? 

    For more information on filing options and requirements, see the Withholding Tax page on our website. If you have additional questions, contact us at 804.367.8037.


  • 03 Dec 2021 9:07 AM | Anonymous

    Virginia Interest Rates Stay the Same

    Virginia's interest rates will stay the same for the first quarter of 2022. The underpayment and overpayment rates for Virginia taxes are 2% higher than the corresponding federal rates. Federal rates for the first quarter of 2022 are 3% for tax underpayments and 3% for tax overpayments by taxpayers other than corporations. Accordingly, the Virginia rates for the first quarter of 2022 will be 5% for tax underpayments (assessments) and 5% for tax overpayments (refunds).

    Details about these interest rates can be found in Tax Bulletin 21-10 and in the Laws, Rules, and Decisions section of our website.  

    View the Tax Bulletin

    If you have additional questions, go to www.tax.virginia.gov, or contact us at 804.367.8031 for individual income tax questions and 804.367.8037 for business tax questions.


  • 09 Nov 2021 12:07 PM | Anonymous

    Virginia Disposable Plastic Bag Tax effective January 1, 2022

    Legislation enacted by the 2020 General Assembly (House Bill 534 (2020 Acts of Assembly, Chapter 1022) and Senate Bill 11 (2020 Acts of Assembly, Chapter 1023)) authorizes any county or city to adopt by ordinance the Virginia Disposable Plastic Bag Tax on disposable plastic bags provided to customers in grocery stores, convenience stores, and drugstores in the locality.

    The tax will be administered by Virginia Tax, which issued Guidelines for the Disposable Plastic Bag Tax on September 1, 2021. As explained in the guidelines, Virginia Tax will be responsible for administering the tax, including auditing and collecting the tax.

    The following localities have adopted the Virginia Disposable Plastic Bag Tax effective January 1, 2022:

    • Alexandria City
    • Fredericksburg City
    • Roanoke City
    • Arlington County
    • Fairfax County

    More information can be found in Tax Bulletin 21-9 and in the Laws, Rules, and Decisions section of our website.  

    View the Tax Bulletin

    If you have additional questions, go to www.tax.virginia.gov, or contact us at 804.367.8031 for individual income tax questions and 804.367.8037 for business tax questions.


  • 01 Oct 2021 2:05 PM | Anonymous

    Guidelines for the Classification of Workers: Independent Contractor vs. Employee

    During the 2020 Session, the Virginia General Assembly enacted House Bill 1407 (2020
    Acts of Assembly, Chapter 681) and Senate Bill 744 (2020 Acts of Assembly, Chapter
    682), which sets forth the Virginia standard for classifying workers performing services
    for remuneration as employees or independent contractors. In addition, this legislation
    imposes civil penalties on employers that fail to properly classify an individual as an
    employee.

    The Guidelines are available in the Guidance Documents section of the Virginia Tax website. For additional information or questions, email us at misclassificationofworkers@tax.virginia.gov.

    View the Tax Guidelines 


  • 02 Sep 2021 4:52 PM | Anonymous

    Virginia Interest Rates Stay the Same

    Virginia Tax announces that Virginia's interest rates will stay the same for the fourth quarter of 2021. The underpayment and overpayment rates for Virginia taxes are 2% higher than the corresponding federal rates. Federal rates for the fourth quarter of 2021 are 3% for tax underpayments and 3% for tax overpayments by taxpayers other than corporations. Accordingly, the Virginia rates for the fourth quarter of 2021 will be 5% for tax underpayments (assessments) and 5% for tax overpayments (refunds).

    Details about these interest rates can be found in Tax Bulletin 21-8 and in the Laws, Rules, and Decisions section of our website.  

    View the Tax Bulletin

    If you have additional questions, go to www.tax.virginia.gov, or contact us at 804.367.8031 for individual income tax questions and 804.367.8037 for business tax questions.


  • 01 Sep 2021 1:52 PM | Anonymous

    Guidelines for the Virginia Disposable Plastic Bag Tax

    Legislation enacted during the Regular Session of the 2020 General Assembly (House Bill 534 (2020 Acts of Assembly, Chapter 1022) and Senate Bill 11 (2020 Acts of Assembly, Chapter 1023) authorizes any county or city to adopt by ordinance the Virginia Disposable Plastic Bag Tax on disposable plastic bags provided to customers in grocery stores, convenience stores, and drugstores in the locality. The tax will be administered by Virginia Tax. A locality must provide a certified copy of the ordinance to the Tax Commissioner at least 3 months prior to the date the tax is to become effective.

    Any county or city may impose the Virginia Disposable Plastic Bag Tax in the amount of 5 cents on each disposable plastic bag provided to purchasers by any grocery store, convenience store, or drugstore in the locality. The tax is due regardless of whether the retailer sells the bag to the customer or it is provided free of charge.

    The Guidelines are available in the Guidance Documents section of the Virginia Tax website. For additional information or questions, contact the Virginia Tax Business Customer Service line at 804.367.8037.

    View the Tax Guidelines 


  • 27 Jul 2021 11:20 AM | Anonymous

    Guidelines for the Application of the Retail Sales and Use Tax to Sales of Accommodations Facilitated by Accommodations Intermediaries

    Effective September 1, 2021, Senate Bill 1398 (2021 Acts of Assembly, Special Session I, Chapter 383) changes the application of the Retail Sales and Use Tax to sales of accommodations facilitated by accommodations intermediaries. The legislation makes similar changes to the local transient occupancy tax. Additionally, these changes will apply to the state imposed transient occupancy taxes that fund transportation purposes in certain localities under Va. Code § 58.1-1743 and Va. Code § 58.1-1744 because these taxes are administered by local governments in the same manner as their local transient occupancy taxes. Virginia Tax has issued guidelines to provide processes and procedures for implementing the provisions of Va. Code §§ 58.1-602, 58.1-603, and 58.1-612.2, relating to the Retail Sales and Use Taxation of accommodations, as required by Senate Bill 1398. 

    The Guidelines are available in the Guidance Documents section of the Virginia Tax website. For additional information or questions, contact the Virginia Tax Business Customer Service hotline at 804.367.8037.

    View the Tax Guidelines 


  • 23 Jun 2021 2:43 PM | Anonymous

    2021 Legislative Summary Published

    The 2021 Legislative Summary is now available. 

    The Legislative Summary is published by Virginia Tax as a convenient reference guide to state and local tax legislation enacted by the 2021 Session of the General Assembly.

    The Summary includes a general description of enacted legislation affecting:

    • State taxes administered by Virginia Tax, and
    • Local taxes for which Virginia Tax assists with administration, or on which Virginia Tax renders advisory assistance.

    References to chapter numbers are to the corresponding chapters in the Acts of Assembly, which may be viewed at: https://lis.virginia.gov. Effective dates of the legislation vary and are set out in each description.

    In general, legislation affecting taxes administered by other state agencies is not included in the Summary.

    The Summary is intended to provide a synopsis of enacted legislation and is for informational purposes only. The Summary is not a substitute for the actual state law, local ordinances, or tax related regulations. 

    View the Legislative Summary

    If you have additional questions, please visit https://www.tax.virginia.gov, or contact us at 804.367.8031 for individual income tax questions or 804.367.8037 for business tax questions.


  • 16 Jun 2021 11:47 AM | Anonymous

    Virginia Interest Rates Stay the Same

    Virginia Tax announces that Virginia's interest rates will stay the same for the third quarter of 2021. The underpayment and overpayment rates for Virginia taxes are 2% higher than the corresponding federal rates. Federal rates for the third quarter of 2021 are 3% for tax underpayments and 3% for tax overpayments by taxpayers other than corporations. Accordingly, the Virginia rates for the third quarter of 2021 will be 5% for tax underpayments (assessments) and 5% for tax overpayments (refunds).

    Details about these interest rates can be found in Tax Bulletin 21-7 and in the Laws, Rules, and Decisions section of our website.  

    View the Tax Bulletin

    If you have additional questions, go to www.tax.virginia.gov, or contact us at 804.367.8031 for individual income tax questions and 804.367.8037 for business tax questions.


  • 14 May 2021 9:21 AM | Anonymous

    Virginia's New Electronic Payment Requirement for Some Individual Income Taxpayers

    Following an amendment to legislation approved by the Virginia General Assembly, some taxpayers may now be affected by a new requirement for certain tax payments. 

    Effective for taxable years beginning on or after Jan. 1, 2021, taxpayers who make estimated tax payments must submit all of their income tax payments electronically if:

    • Any estimated tax payment exceeds $2,500; or
    • Any extension payment exceeds $2,500; or
    • The total estimated income tax due in any taxable year exceeds $10,000.Taxpayers should refer to the estimated income tax instructions for details about how to compute the total estimated tax due.  

    This applies to all payments made on or after July 1, 2021, and includes all payments for estimated taxes, extension payments and any other amounts due when a taxpayer files a return. 

    Visit the Virginia Tax website for more information on individual income tax payment options.  

    If you have questions, please call Virginia Tax Customer Service at 804.367.8031. 


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