Virginia Administrative Code
Title 23 - TAXATION
Agency 10 - DEPARTMENT OF TAXATION
Chapter 120 - Corporation Income Tax
Section 23VAC10-120-440 - Installment payment of estimated tax

Universal Citation: 3 VA Admin Code 10-120-440

Current through Register Vol. 41, No. 3, September 23, 2024

A. In general. The estimated tax shall be paid in installments as follows:

1. If the declaration is required to be filed on the 15th day of the 4th month of the taxable year, 25% shall be paid with the declaration and on the 15th day of the 6th, 9th and 12th month of the taxable year.

2. If the declaration is required to be filed on the 15th day of the 6th month of the taxable year, 33% shall be paid with the declaration and on the 15th day of the 9th and 12th month of the taxable year.

3. If the declaration is required to be filed on the 15th day of the 9th month of the taxable year, 50% shall be paid with the declaration and on the 15th day of the 12th month of the taxable year.

4. If the declaration is required to be filed on the 15th day of the 12th month of the taxable year, 100% shall be paid with the declaration.

B. Late declarations. If the declaration is filed after the time prescribed then the corporation shall pay with the declaration all installments of estimated tax which would have been payable on or before the filing if the declaration had been filed within the prescribed time. Subsequent installments shall be payable as if the declaration had been timely filed.

Example: On January 1 a calendar year corporation expected its estimated tax to be $2,000 but did not file a declaration until June 15, even though the filing requirements for filing a declaration were met before April 1. Had the declaration been timely filed 50% of the estimated tax would have been paid on or before the filing (25% on April 15 and June 15). The corporation must pay 50% of the estimated tax with the declaration and 25% on September 15 and December 15.

C. Amendments. If the declaration of estimated tax is amended the amount payable with the amended declaration and the amount of each remaining installment (if any) shall be the difference between the new estimate and the amount actually paid prior to the amendment divided by the number of installments remaining. However, if the payments made exceed the new estimated tax the difference may not be refunded until the income tax return is filed for the taxable year.

Example: A corporation expects its estimated tax to be $2,000 and timely files its declaration and pays the first two installments of $500. Upon payment of the third installment the corporation amends its declaration of estimated tax to $3,000. The third and fourth installments are $1,000 each computed as follows: $3,000 new estimate less $1,000 paid to date divided by the two payments remaining equals $1,000.

D. Short taxable year. All installments due before the close of the short taxable year shall be paid. If the declaration is amended the corporation shall follow the same procedure for computing the amount of the remaining installments due before the close of the short taxable year.

E. Application of payments. All payments of estimated tax shall be applied toward the income tax liability of the taxpayer for the taxable year. No refunds of estimated tax may be obtained except upon filing of the income tax return for the taxable year. Payments of estimated tax may not be applied toward any other tax or taxable year unless and until an income tax return is filed showing a refund. In extraordinary circumstances where the taxpayer is not required to file an income tax return the taxpayer may request a refund of estimated tax.

Statutory Authority

§§ 58.1-203 and 58.1-502 of the Code of Virginia.

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