Interest Assessments Waived for Additional Month
Earlier this month, we reported that COVID-19 has generated a lot of moving regulatory parts … including deferments in Virginia tax deadlines as well as changes in penalties and interest for late-filers. Well, here’s yet another update … a deferment in interest assessments.
Prior to last week’s Virginia General Assembly amendment, both individual and corporate income taxpayers would incur interest assessments on 2019 tax year payments made after May 1. That date has now been extended to June 1. This waiver of interest applies to 2019 tax year final payments and extension payments, plus any tax otherwise applicable to estimated payments for the first quarter of 2020.
The rule for late payment penalties remains unchanged … no penalties due if payments are made by June 1, 2020. Thereafter, balances due will accrue interest penalties.
All income tax filing deadlines remain the same, including the May 1, 2020 individual income tax filing due date. One exception is an automatic 6-month extension to file for corporations (7 months for certain corporations). When at least 90% of your tax liability is paid by June 1, 2020, no penalties are imposed so long as you file your return and pay the remaining amount of your tax liability by November 1, 2020.
Businesses impacted by coronavirus can request an extension of the due date for filing and payment of their February 2020 sales tax return due March 20, 2020, for 30 days. When granted, businesses will be able to file and pay no later than April 20, 2020 with a waiver of any penalties.
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