What Virginia filing and payment relief was available to taxpayers affected by Hurricane Harvey?

Subject

Extension & Penalty Waiver for Victims of Hurricane Harvey

Plain-English summary

Virginia Tax Bulletin 17-10 provided temporary penalty relief for individuals and businesses unable to meet Virginia filing obligations because Hurricane Harvey damage or power outages made their financial records unavailable.

Income-tax returns and estimated payments due from August 23, 2017 through January 31, 2018 could receive late-filing and late-payment penalty waivers if the corresponding federal return qualified for IRS relief and the Virginia return and payment were completed by March 2, 2018.

Semi-weekly withholding payments covered by the IRS extension through September 7, 2017 had to be paid by September 20, 2017. Monthly and quarterly withholding returns and quarterly reconciliations due during the disaster window had a January 31, 2018 relief deadline. Federal-linked income and withholding extensions were automatic, but taxpayers were told to contact the Department if a penalty was assessed.

For other state taxes administered by Virginia, hardship relief required a written waiver request. All dates in this bulletin are historical.

Citations and references

• Virginia Tax Bulletin 17-10.

Source

• Landing page: Virginia Laws, Rules & Decisions
• Ruling: P.D. 17-166

Original ruling text

TAX BULLETIN 17-10

Virginia Department of Taxation

September 14, 2017

IMPORTANT INFORMATION REGARDING THOSE AFFECTED BY HURRICANE HARVEY

Extension & Penalty Waiver for Victims of Hurricane Harvey

Tax Commissioner Craig M. Burns has announced that Virginia will provide extensions and penalty waivers to those individuals and businesses affected by Hurricane Harvey. To qualify, taxpayers must be unable to meet their filing obligations because the financial books and records they need to file their taxes are unavailable due to damage or power outage attributable to Hurricane Harvey.

Corporate, Individual and Fiduciary Income Tax Returns (Forms 500, 760, 763, 760PY, and 770)

Income tax returns and estimated payments with an original or extended due date between August 23, 2017 and January 31, 2018, and for which corresponding federal returns qualify for the extension granted by the Internal Revenue Service, will be granted a waiver of late filing and late payment penalties if the returns and payments are filed on or before March 2, 2018.

Withholding Tax

Semi-weekly withholding payments (Form VA-15) due within three banking days of a payroll period subject to federal deposit and for which the Internal Revenue Service granted an extension until September 7, 2017 will be granted a waiver of late filing and late payment penalties if the Virginia payments are made on or before September 20, 2017. Subsequent payments must be made as required by existing law. For the quarterly reconciliation of these payments (Form VA-16), see below.

Monthly and quarterly withholding tax returns (Form VA-5) and the quarterly reconciliation of semi-weekly payments (Form VA 16) with a due date between August 23, 2017 and January 31, 2018, and for which corresponding federal returns qualify for the extension granted by the Internal Revenue Service, will be granted a waiver of late filing and late payment penalties if the returns and payments are filed on or before January 31, 2018.

The Virginia extensions linked to extensions of corresponding federal income and withholding tax are automatic and no action is required by taxpayers. However, if a penalty is assessed and you believe that you qualify for an extension or penalty waiver, please contact the Department.

Other State Taxes Administered by the Department of Taxation

Any other state tax return and payment with a due date on or after August 23, 2017, for which the taxpayer can demonstrate hardship attributable to Hurricane Harvey, may be granted a waiver of late filing and late payment penalties upon request in writing. Written requests for waivers of penalty for other state taxes in hardship cases should be directed to the following address:

Virginia Department of Taxation

Customer Service Section

Severe Storm Relief

P.O. Box 1115

Richmond, VA 23218-1115

If you are enrolled in iFile, you may send a secure message to the Department requesting a waiver. If you would like to enroll in iFile, please visit our website at www.tax.virginia.gov .

This Tax Bulletin is available online in the Laws, Rules & Decisions section of the Department’s website. If you have additional questions, please visit the Department’s website at http://www.tax.virginia.gov , or contact the Department at (804) 367-8031 for individual income tax questions or (804) 367-8037 for business tax questions.