Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 115 - FIDUCIARY INCOME TAX › Part II - Fiduciary Estimated Tax › Section 23VAC10-115-150 - Installment payments; due dates and amounts

Current through Register Vol. 40, No. 24, July 15, 2024
The estimated tax shown on the declaration shall be paid in
					 equal installments as follows:
1. If
				  the declaration is filed on or before May 1 of the taxable year, the estimated
				  tax shall be paid in four equal installments. The first installment shall be
				  paid at the time the declaration is filed and the second, third and fourth
				  installments shall be paid on the following June 15, September 15, and January
				  15, respectively.
2. If the
				  declaration is not required to be filed on or before May 1 of the taxable year,
				  and is filed after May 1 but on or before June 15 of the taxable year, the
				  estimated tax shall be paid in three equal installments. The first installment
				  shall be paid at the time the declaration is filed and the second and third
				  installments shall be paid on the following September 15 and January 15,
				  respectively.
3. If the declaration
				  is not required to be filed on or before June 15 of the taxable year, and is
				  filed after June 15 but on or before September 15 of the taxable year, the
				  estimated tax shall be paid in two equal installments. The first installment
				  shall be paid at the time the declaration is filed and the second installment
				  shall be paid on the following January 15.
4. If the declaration is not required to be
				  filed on or before September 15 of the taxable year, and is filed after
				  September 15, the estimated tax shall be paid in full at the time the
				  declaration is filed.
5. If the
				  declaration is filed after the due date, including cases where an extension of
				  time has been granted, subdivisions 2, 3 and 4 of this section shall not apply.
				  All installments of estimated tax which would have been due if the declaration
				  had been timely filed shall be paid at or before the time of filing. The
				  remaining installments shall be paid when, and in the amounts which, they would
				  have been payable if the declaration had been filed when due.
6. Examples.
a. On April 15, 1988, the fiduciary of the
				  ABC trust expects to receive $50,000 income in 1988. Under the terms of the
				  trust instrument the fiduciary is required to distribute all income to adult
				  beneficiaries, but may accumulate the income of a minor beneficiary. There are
				  two beneficiaries, both of whom are adults. No declaration or payment is
				  required on May 1, 1988, because the trust's estimated tax liability is zero.
				  However, as a result of the death of one of the beneficiaries on August 1,
				  1988, a minor has become a beneficiary and the fiduciary anticipates
				  accumulating the income of the minor. The minor's share of income for the
				  remaining five months of the taxable year will be ½ of 5/12 of $50,000
				  or $10,417.
The trust's estimated tax on $10,417 is $391 for the
					 taxable year which must be paid in installments, one-half on or before
					 September 15, 1988, and the remaining half on or before January 15,
					 1989.
b. On April 15, 1988,
				  the fiduciary of Trust DEF expected its estimated tax for 1988 to be $500.
				  Therefore, a declaration and an installment payment of $125 were due on May 1,
				  1988, but were not made. The omission is discovered on September 1, 1988. The
				  first three installments totaling $375 are due on or before September 15, 1988.
				  The remaining installment of $125 is due on or before January 15,
				  1989.
c. Same facts as in example b
				  except that due to a change in circumstances the fiduciary discovers on August
				  31 that the estimated tax for 1988 should be $2,000 instead of $500. The first
				  three installments totaling $1,500 are due on or before September 15, 1988, and
				  the remaining installment of $500 is due on or before January 15,
				  1989.