Corporations Filing in Virginia Subject to Special Information Report
By John Bonk, National State & Local Tax Leader
In its 2021 state budget bill, the Virginia General Assembly declared that the state will need to gather data in order to determine the impact of allowing combined income tax reporting by corporations.
Therefore, the 2021 House Joint Resolution requires corporations subject to Virginia income tax to file a one-time report by July 1, 2021. This report will reflect the difference between the amounts of tax due for a unitary filing as compared to the amounts due under corporations’ current filings. The 2019 corporation income tax calculations will be utilized to complete this report.
Taxpayers will be able to file their reports using the Virginia Web Upload application beginning May 1.
Corporations that do not file a report, or that make a material misstatement or omission, may be subject to a $10,000 penalty.
More information and sample reports can be found on the Virginia website.
For more information regarding how state tax requirements may affect your business, please contact your Marcum State and Local Tax professional.