58.1-2648 - Failure to pay estimated tax. - Virginia Statutes

§ 58.1-2648. Failure to pay estimated tax.

A. In case of any underpayment of estimated tax by a taxpayer, there shall beadded to the tax for the tax year an amount determined at the rate providedin § 58.1-15 upon the amount of the underpayment for the period of theunderpayment (determined under subsection C).

B. For purposes of subsection A, the amount of the underpayment shall be theexcess of:

1. The amount of the installment which would be required to be paid if theestimated tax were equal to ninety percent of the tax ascertained for the taxyear, over

2. The amount, if any, of the installment paid on or before the last dateprescribed for payment.

C. The period of the underpayment shall run from the date the installment wasrequired to be paid to whichever of the following dates is the earlier:

1. June 1 following the close of the taxable year.

2. With respect to any portion of the underpayment, the date on which suchportion is paid. For purposes of this subdivision, a payment of estimated taxon any installment date shall be considered a payment of any previousunderpayment only to the extent such payment exceeds the amount of theinstallment determined under subdivision B 1 of this section for suchinstallment date.

(Code 1950, § 58-514.8; 1968, c. 15; 1984, c. 675; 1988, c. 899.)