58.1-308 - Assessment and payment of deficiency; fraud; penalties. - Virginia Statutes

§ 58.1-308. Assessment and payment of deficiency; fraud; penalties.

If the amount of tax computed by the Department is greater than the amounttheretofore assessed, the excess shall be assessed by the Department and abill for the same shall be mailed to the taxpayer. The taxpayer shall paysuch additional tax to the Department within thirty days after the amount ofthe tax as computed is mailed by the Department. In such case, if the returnwas made in good faith and the understatement of the amount in the return wasnot due to any fault of the taxpayer, there shall be no penalty on theadditional tax because of such understatement, but interest shall be added tothe amount of the deficiency at a rate determined in accordance with §58.1-15, from the time the return was required by law to be filed until paid.

If the understatement is false or fraudulent with intent to evade the tax, apenalty of 100 percent shall be added together with interest on the tax at arate determined in accordance with § 58.1-15, from the time the return wasrequired by law to be filed until paid.

Nothing contained in this section shall prevent the taxpayer from applying tothe circuit court of the county or the city wherein he resides for acorrection of the assessment made by the Department, with right of appeal inthe manner provided by law.

(Code 1950, § 58-151.071; 1971, Ex. Sess., c. 171; 1977, c. 396; 1984, c.675.)