58.1-2412 - Surety bond requirement. - Virginia Statutes

§ 58.1-2412. Surety bond requirement.

In addition to penalties for failure to make a timely return or pay taxeswhen due as provided in § 58.1-2411, the Commissioner may require any rentor,who has failed to make a timely return or pay taxes when due, to file a bondor other security to assure the Commonwealth's collection of moneys due.

The bond shall be in an amount to be determined upon investigation by theCommissioner or to be approximately three times the anticipated averagemonthly tax to become due by the rentor in the next succeeding three months.In no case shall the amount of the bond be less than $500 nor more than$20,000. The bond shall be (i) in such form as may be approved by theCommissioner, (ii) executed by some surety company licensed to do businessunder the laws of the Commonwealth of Virginia, (iii) payable to theCommonwealth of Virginia, and (iv) conditioned upon the prompt filing of truereports and the payment by such rentor to the Commissioner of any rental oradditional taxes which are now or which may be hereafter levied or imposed,together with any penalties and interest thereon. Such bond shall be sowritten that, on timely payment of the premium thereon, it shall continue inforce from year to year unless sooner terminated.

(Code 1950, § 58-685.17:3; 1982, c. 141; 1984, c. 675.)