Virginia Administrative Code
Title 23 - TAXATION
Agency 10 - DEPARTMENT OF TAXATION
Chapter 115 - FIDUCIARY INCOME TAX
Part II - Fiduciary Estimated Tax
Section 23VAC10-115-162 - Period of underpayment
Current through Register Vol. 41, No. 3, September 23, 2024
The period of the underpayment shall run from the date the installment was required to be paid to the earlier of the following dates:
1. May 1, if a calendar year, or the 15th day of the fourth month following the close of the taxable year, if a fiscal year, or
2. With respect to any portion of the underpayment, the date on which such portion is paid. For purposes of this subdivision, a payment of estimated tax on any installment date shall be considered a payment of any previous underpayment only to the extent such payment exceeds the amount of the installment determined under subdivision 1 of 23VAC10-115-161 for such installment date.
3. Example: The principles of 23VAC10-115-160, 23VAC10-115-161, and 23VAC10-115-162 may be illustrated by the following: On or before May 1, 1988, the trustee of The Jones Trust could reasonably expect the fiduciary's Virginia tax liability for calendar year 1988 to exceed $150. Therefore, the trustee timely makes four installment payments: $1,500 on May 1, 1988, and June 15, 1988, and $2,000 on September 15, 1988, and January 15, 1989. When the fiduciary income tax return is filed on May 1, 1989, the tax liability is $10,000. The total paid ($7,000) is less than 90% of the tax ($9,000). Therefore, an addition to the tax in the amount of $174.56 is due, computed as follows:
INSTALLMENT 1st 2nd 3rd 4th
AMOUNT OF UNDERPAYMENT
90% of the tax / 4 2,250.00 2,250.00 2,250.00 2,250.00
Actual Payment 1,500.00 1,500.00 2,000.00 2,000.00
Underpayment 750.00 750.00 250.00 250.00
PERIOD OF UNDERPAYMENT
Date due 5/1/88 6/15/88 9/15/88 1/15/89
Date Paid 5/1/89 5/1/89 5/1/89 5/1/89
No. of days (total) 365 320 228 106
No. of days underpayment is
subject to each rate
4/1/88 - 6/30/88 at 10% 60 15 0 0
7/1/88 - 9/30/88 at 10% 92 92 15 0
10/1/88 - 12/31/88 at 11% 92 92 92 0
1/1/89 - 5/1/89 at 11% 121 121 121 106
ADDITION TO THE TAX
4/1/88 - 6/30/88 at 10% 12.33 3.08 0.00 0.00
7/1/88 - 9/30/88 at 10% 18.90 18.90 1.03 0.00
10/1/88 - 12/31/88 at 11% 20.79 20.79 6.93 0.00
1/1/89 - 5/1/89 at 11% 27.35 27.35 9.12 7.99
Total addition = 174.56 79.37 70.12 17.08 7.99
Statutory Authority
§§ 58.1-203 and 58.1-492 of the Code of Virginia.
