58.1-1114 - Assessment and payment of deficiency; penalties; application for correction. - Virginia Statutes

§ 58.1-1114. Assessment and payment of deficiency; penalties; application forcorrection.

If the amount of tax computed by the Department is greater than the amounttheretofore assessed, the excess shall be assessed by the Tax Commissionerand notice of the same shall be mailed to the taxpayer. The taxpayer shallremit such additional tax to the Department within thirty days from the dateof such notice. In such case, if the return was made in good faith and theunderstatement of the amount in the return was not due to any fault of thetaxpayer, there shall be no penalty on the additional tax because of suchunderstatement, but interest shall be added to the amount of the deficiencyat a rate determined in accordance with § 58.1-15, from the time the returnwas required by law to be filed until paid. If the understatement is false orfraudulent with intent to evade the tax a penalty of 100 percent shall beadded together with interest on the tax at a rate determined in accordancewith § 58.1-15, from the time the return was required by law to be fileduntil paid. Nothing contained in this section shall prevent the taxpayer fromapplying for a correction of any assessment as provided in Chapter 18,Article 2 (§ 58.1-1820 et seq.) of this title.

The taxes imposed by this chapter shall be assessed within three years fromthe date on which such taxes became due and payable, except that in the caseof a false or fraudulent return with intent to evade payment of such taxes,or a failure to file a return, the taxes may be assessed at any time withinsix years from such date.

(Code 1950, § 58-435; 1960, c. 508; 1976, c. 422; 1977, c. 396; 1980, c. 633;1984, c. 675.)