Virginia Department of Taxation LogoVirginia Department of Taxation

P.O. Box 1115
Richmond, Va. 23218-1115
January 2013 e-Alerts Digest
In This Issue
Join Our Mailing List

Quick Links
Top
Corporate Income Tax
Find Us on Social Media

    Like us on Facebook   Follow us on Twitter   View our videos on YouTube   View our profile on LinkedIn     
Filing Reminders

Corporate returns for the taxable year ending September 30, 2012, must be filed on or before 
January 15, 2013
 

 

Even though Virginia law provides for an automatic six-month extension, it is an extension to file, not an extension to pay.  At least 90 percent of the total tax liability for the taxable year must be paid on or before the due date of the return.  Visit the Corporate Income Tax page of the Department's website for more information.

 

Corporate returns for the taxable year ending March 31, 2012 for which an extension of time to file was taken must also be filed on or before January 15, 2013.  


What's New for the 2012 Corporate Income Tax
Corporate Electronic Filing Requirement

The 2012-2014 Appropriations Act Item (273 of HB 1301 - Acts of Assembly 2012 Special Session I, Chapter 3) requires all corporations to file their estimated tax payments, annual income tax returns and final payments electronically beginning January 1, 2013.  This includes Taxable Year 2012 returns, tax due payments, extension payments and Taxable Year 2013 estimated payments.  

  • The annual corporate income tax return must be filed through the Federal/State e-File program, which is supported by numerous commercial software applications. For a list of approved commercial e-File software and more information, visit the Department's Corporate Income Tax page.
  • Tax due payments can be made through the e-File system as a direct debit or by an ACH Credit transaction initiated through the corporation's bank.
  • The Department provides two secure online options for electronically submitting estimated and extension payments, e-Forms and Business iFile. For more information and to determine the method that works best for you visit "Estimated and Extension Payments" on the Corporate Income Tax page of the Department's website.  Estimated tax payments and extension payments can also be submitted by an ACH Credit. 
Corporations unable to file and pay electronically by the effective date may request a waiver.
 
Apportionment for Retail Companies

 

For taxable years beginning on or after July 1, 2012, but before July 1, 2014, retail companies are required to determine their Virginia taxable income by using an apportionment formula with a triple-weighted sales factor.  

 

A single sales factor apportionment formula will be phased in over a three-year period beginning as a triple-weighted sales factor for taxable years beginning on or after July 1, 2012, but before July 1, 2014, followed by a quadruple-weighted sales factor for taxable years beginning on or after July 1, 2014, but before July 1, 2015, and then a single sales factor for taxable years beginning on and after July 1, 2015. 

 

Back to Top

Advancement of Virginia's Fixed Date Conformity with the Internal Revenue Code
 
Virginia's date of conformity with the Internal Revenue Code (IRC) was advanced from December 31, 2010, to December 31, 2011, with limited exceptions. 

Virginia will continue to disallow federal income tax deductions for the 30% and 50% bonus depreciation allowed for certain assets and the five-year carryback of federal net operating loss deductions generated in taxable years 2008 or 2009. 

Also, Virginia will continue to disallow the income tax deductions related to applicable high yield discount obligations under IRC � 163(e)(5)(F). 

In addition, fixed date conformity adjustments continue to be required for Cancellation of Debt Income under IRC � 108(i), and the domestic production activities deduction under IRC � 199.
 
At this time, the only required adjustments for "fixed date conformity" were those mentioned above.

However, if federal legislation is enacted that results in changes to the Internal Revenue Code for the 2012 taxable year, taxpayers will be required to make adjustments to their Virginia returns that are not described in the instruction booklet. Information about any such adjustments will be posted on the Department's website.

Telework Expenses Tax Credit
 

The Telework Expenses Tax Credit is a new individual and corporate income tax credit for employers who incur eligible telework expenses pursuant to a telework agreement or conduct telework assessments. 

 

Taxpayers are required to apply to the Department of Taxation between September 1 and October 31 of the year preceding the taxable year for which the tax credit is earned to reserve a portion of the credit. 

 

To qualify for a credit, the employer must enter into a signed telework agreement with the teleworking employee on or after July 1, 2012, but before January 1, 2017. 

 

This telework agreement must be in accordance with policies set by the Department of Rail and Public Transportation (DRPT) which are available on the Telework!VA website at www.teleworkva.org.

 

For details on this new credit and modifications to existing credits, see What's New for Tax Credits.

 

Back to Top

Telework Expenses Addition 

 

Taxpayers who claim the Virginia Telework Expenses Tax Credit are not allowed to exclude those expenses from Virginia taxable income. To the extent excluded from federal taxable income, any expenses incurred by a taxpayer in connection with the Telework Expenses Tax Credit must be added to the Virginia return.

 

Back to Top

Other Online Services for Corporations 
  • Use Quick Pay to:
    •  Pay outstanding tax bills
    • Schedule bill payments for a future date
    • View history of QuickPay bill payments
    • View outstanding tax bills
  • Use Business iFile to:
    • View your filing history
    • Update your account with address changes, changes to your contact information, to add or update a Responsible Officer, add or remove a tax to your existing account and close your business. 
    • Send a secure email to the Department's Customer Services for assistance specific to your account

Visit Online Services on the Department's website for more information and start using these services today.


Contact the Virginia Department of Taxation By Phone, E-mail, or Live Chat

Copyright © 2012. All Rights Reserved.