23 Va. Admin. Code § 10-110-270

Current through Register Vol. 41, No. 8, December 2, 2024

Section 23VAC10-110-270 - Extension of time for filing returns

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.

23 Va. Admin. Code § 10-110-270

Derived from VR630-2-344; adopted September 19, 1984; revised eff. January 1, 1985 with retroactive effect according to Va. Code § 58-48.6 (recodified as Section 58.1-203).

Statutory Authority

§§ 58.1-203 and 58.1-344 of the Code of Virginia.