If your client missed the May 1 filing deadline, or did not pay his or her Taxable Year 2012 income tax by that date, he or she may be liable for penalties and/or interest on the balance due with the return.

If your client filed the return on or before May 1, but did not pay the tax due, he or she may be subject to the late-payment penalty. The late payment penalty is assessed on any amount of unpaid tax due beginning with the due date for filing and ending with the date their balance of tax due is paid in full. The late payment penalty is assessed at a rate of 6 percent per month up to a maximum of 30 percent of the tax due.

If your client filed his or her return during Virginia's automatic extension period but did not pay the full tax due amount on or before May 1, he or she may be subject to the extension penalty. Virginia law allows an automatic six-month extension for filing Individual Income tax returns. However, taxpayers must still pay any tentative tax due by the original due date. If at least 90 percent of their total tax liability is not paid by May 1, the extension penalty will apply to any unpaid balance of tax due. The extension penalty is assessed at a rate of 2 percent per month up to a maximum of 12 percent of the tax due.

Interest will always apply to any tax amounts that are not paid by the original due date for filing. Interest will accrue from the original due date for filing through the date that all tax, penalty, and interest is paid in full.

Visit the Department's website for details on penalty and interest charges.

Corporation Income Tax returns for the taxable year ending on January 31, 2013, must be filed on or before May 15, 2013 Virginia law also provides for an automatic six-month extension of time to file. However, the extension does not allow for additional time to pay any balance of taxes due. Payment for any tentative tax due must still be submitted by the original due date. Visit the Department's websitefor more information.

The automatic six-month extension period to file Corporation Income Tax returns for the taxable year ending on July 31, 2012, ends on May 15, 2013.   In order to take advantage of any Virginia automatic extension, the return must be filed during the extension period. Please bear in mind, extension penalty may apply to returns filed during the extension period if 90 percent of the return's total tax liability was not paid by the original due date. For more details regarding Corporation Income Tax extensions and penalties, visit the Department's Corporation Income Tax page.

Remember: it is very important that the Department maintains accurate information regarding taxpayer businesses. If your client closes a specific business location or closes the business entirely, please advise the business to update its Virginia tax records. Taxpayers can update their tax account to reflect closures, as well as update address or contact information, add new taxes to their existing account, or notify the Department that they are no longer liable for a specific tax through the Department's Business iFile system.

The Virginia Taxpayer Bill of Rights booklet outlines taxpayer rights in contacts with the Department, and contains a wealth of other useful information, forms, and instructions.

Intended as a guide to the rights provided in the Code of Virginia under the Virginia Taxpayer Bill of Rights, the booklet also describes the role of the Taxpayer Rights Advocate and the agency's collections, office audit, and field audit processes in detail, and covers the basics for offers in compromise and administrative appeals.  The booklet's appendices include forms and instructions for submitting an appeal or an offer in compromise, plus forms for designating a power of attorney.

The Virginia Taxpayer Bill of Rights booklet is a valuable resource for both taxpayers and tax professionals.  Be sure to bookmark or download a copy of the booklet for your tax reference library!

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