Current through Register Vol. 41, No. 3, September 23, 2024
A. Generally. Except as set forth herein, no
taxpayer shall receive any extension of time for filing his income tax return.
As used in this section, the term "original due date" shall mean the date
prescribed by law for the filing of the income tax return.
Any taxpayer who requests an extension of time for filing his
return pursuant to this section can assume that the department has acquiesced
to the request unless otherwise notified. Consequently, a taxpayer will not
receive any confirmation that an extension has been accepted, but will be
notified if such request is denied.
B. Federal extension granted. Any taxpayer
who has been granted an extension of time for filing his federal income tax
return for the taxable year, may receive an extension of time for filing the
Virginia return for such taxable year provided the taxpayer files a tentative
tax return (Form 760-E) and pays the tentative tax on or before the original
due date of the return.
If additional federal extension(s) are granted, additional
extensions of time for filing the Virginia return will similarly be granted
provided the taxpayer requests a Virginia extension either by completing the
appropriate portion of Form 760-E and returning it to the department or by
letter to the department prior to expiration of the original extension. The
period of time for filing the Virginia return will be extended to 15 days after
the expiration of the federal extension or 6 months from the original due date
of the return, whichever is earlier, provided the requirements of this section
have been satisfied.
C.
Extension for good cause. A taxpayer who has not requested or been granted an
extension of time for filing his federal income tax return may request an
extension of time for filing his Virginia return, provided he can demonstrate
good cause for being unable to file the return on or before the appropriate due
date. Such extension will be granted only if the taxpayer files a tentative tax
return (Form 760-E) and pays the tentative tax on or before the original due
date of the return.
In no instance will the time for filing the return be
extended to a date in excess of 6 months from the original due date of the
return. Any person who is granted an extension under the provisions of this
subsection must attach a copy of the form or letter applying for the Virginia
extension(s) to the face of the return when filed.
D. Tentative tax return.
1. Generally. Any person who requests an
extension of time for the filing of his Virginia income tax return as provided
in subsections (B) and (C) above must file a tentative tax return and pay a
tentative tax on or before the original due date of the return.
2. Computation of tentative tax. The
tentative tax is computed by estimating the taxpayer's Virginia taxable income
and the tax thereon as though no extension had been requested. In computing the
tentative tax due, credit should be taken for estimated tax payments made for
the taxable year, Virginia income tax withheld during the taxable year, and any
overpayment of tax for the prior taxable year which the taxpayer indicated
should be applied to the current taxable year's liability.
3. Underestimation of tentative tax. Any
taxpayer who underestimates the amount of tentative tax due shall be assessed
interest on the amount of underpayment. The interest, computed at the rate
prescribed in § 58.1-1821 of the Code of Virginia, (which is the current
interest rate set forth in IRC § 6621) shall be assessed from the original
due date of the return until the date of full payment of the tax due (after
subtracting credits for income tax withheld and estimated tax payments or
credit) for the taxable year.
4.
Penalty for underpayment. If the amount of tentative tax paid is less than 90%
of the actual tax due for the taxable year, penalty on the amount of
underpayment shall be assessed. Such penalty, computed at the rate of 1/2%
per calendar month (or fraction thereof) from the original due date of the
return until the date of full payment of the actual tax due, shall be added to
the tax due. Any penalty assessed shall be in addition to the interest on the
underestimation as set forth in the preceding paragraph.
E. Person outside of the U.S.
1. Generally. Any person who is residing or
traveling outside of the United States (with Puerto Rico defined for this
purpose as part of the United States) on the due date for filing his Virginia
income tax return for the taxable year shall be granted an automatic extension
of time for filing his Virginia return. Persons qualifying for this extension
are not required to make request for the extension nor file and pay any
tentative tax. However, a statement must be attached to the taxpayer's return
when filed certifying that the taxpayer was traveling or residing outside of
the United States and Puerto Rico on the original due date of the return.
Persons traveling or residing outside the United States and Puerto Rico on duty
in military or naval service qualify for this automatic extension.
2. Extended due date. The time for filing a
Virginia tax return by persons qualifying for the extension set forth in
subsection E of this section shall be extended to the first day of the seventh
month following the close of the taxable year. For example, the due date of the
1983 return of a calendar year taxpayer qualifying for the extension would be
extended to July 1, 1984.
3.
Additional extension for foreign Income exclusion.
a. Generally. Any person who qualifies for
the automatic extension set forth in this section may apply for an additional
extension of time if he expects to be able to exclude certain foreign income
from his FAGI under the provisions of IRC § 911. Any taxpayer requesting
such additional extension must apply in letter form to the department and
attach a copy of his request for a similar federal extension. No additional
extension for reason of the foreign income exclusion will be granted unless the
taxpayer has requested a similar extension of time for filing his federal
income tax return for the taxable year. A copy of the approved federal
extension must be attached to the return when filed.
b. Extended due date. Any additional
extension granted pursuant to this subsection shall extend the due date for
filing the Virginia return for a period of 30 days after the taxpayer
reasonably expects to qualify for the foreign income exclusion for federal tax
purposes.
Statutory Authority
§§ 58.1-203 and 58.1-344 of the Code of Virginia.
