Virginia's Income Tax Payment Deadlines Extended in Response to the COVID-19 Crisis (Coronavirus and the Law)

The Virginia Department of Taxation, in Tax Bulletin 20-4 issued March 19, announced that any income tax payments due during the period from April 1, 2020, to June 1, 2020, can now be submitted at any time on or before June 1, 2020, without penalty. Payment due dates are extended but filing deadlines will not change.

Taxes eligible for this payment extension and penalty waiver include individual, corporate, and fiduciary income taxes, as well as any estimated income tax payments that are required to be paid to Virginia Tax during this period.

Virginia Tax will automatically waive any late payment penalties that would otherwise apply so long as full payment is made by June 1, 2020. If full payment of the amount owed during the period is not made by June 1, 2020, the waiver will not apply and late payment penalties will accrue from the original payment due date.

Interest on tax liabilities will continue to accrue. The Tax Bulletin adds that while the payment due date is extended and late filing penalties are waived, interest will continue to accrue from the original due date of such payment. Virginia Tax notes that taxpayers who are able to pay by the original due date are encouraged to do so.

Important Note: Filing Deadlines are not extended. Virginia Tax is not extending the filing deadlines. To avoid any late filing penalties that may apply, taxpayers that utilize the payment extension option are still required to file income tax returns by the relevant due dates.

If a taxpayer is unable to file by such due dates, Virginia offers automatic filing extensions to all taxpayers for up to 6 months (or 7 months in the case of certain corporations). No application is required to file on extension. Further taxpayers who decide to take advantage of Virginia’s automatic filing extension, are directed to be sure to make an extension payment by June 1, 2020, to avoid late payment penalties or extension penalties, as applicable.

Taxpayers with additional questions are encouraged to visit www.tax.virginia.gov or contact Virginia Tax at (804) 367-8031 for individual income tax questions and (804) 367-8037 for business tax questions.

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