reglab/statecodes huggingface dataset:
Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 115 - FIDUCIARY INCOME TAX › Part I - Fiduciary Income Tax › Section 23VAC10-115-110 - Returns of estates and trusts

Current through Register Vol. 40, No. 24, July 15, 2024
A. Every resident estate or trust that either
				  is required to file a federal income tax return for the taxable year or that
				  has any Virginia taxable income for the taxable year must file an income tax
				  return. If the return is for a fractional part of a year, the due date shall be
				  determined as if the return were for a full 12-month period, that is, it shall
				  be due by the 15th day of the fourth month after the close of the taxable
				  year.
B. Every nonresident estate
				  or trust having Virginia taxable income for the taxable year determined under
				  23VAC10-115-50 must file an income
				  tax return.
C. The return must be
				  accompanied by a copy of any federal fiduciary tax return filed for such
				  taxable year.
Statutory Authority: § 58.1-203 of the Code of
						Virginia.
Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 115 - FIDUCIARY INCOME TAX › Part II - Fiduciary Estimated Tax › Section 23VAC10-115-140 - Definitions; declaration

Current through Register Vol. 40, No. 24, July 15, 2024
The following words and terms, when used in
					 23VAC10-115-140 and
					 23VAC10-115-145, shall have the
					 following meanings unless the context clearly indicates otherwise:
"Estimated tax" means the amount which the fiduciary
					 reasonably estimates to be the income tax due for the taxable year, less the
					 amount estimated to be the sum of any credits allowable against the income tax.
					 For this purpose, the refund of an overpayment of income tax which the
					 fiduciary directs to be applied toward the estimated tax for the succeeding
					 taxable year shall be considered an installment payment of estimated tax and
					 not a credit against the income tax.
"Fiduciary" means the person who is required to file
					 federal and Virginia income tax returns for the estate or trust, including the
					 trustee of a trust and the executor or personal representative of an
					 estate.
"Taxable year" means the taxable year of the estate or
					 trust for federal income tax tax purposes.
Statutory Authority
§§ 58.1-203 and 58.1-490 of the Code of
						Virginia.
Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 115 - FIDUCIARY INCOME TAX › Part II - Fiduciary Estimated Tax › Section 23VAC10-115-145 - Declarations of estimated tax

Current through Register Vol. 40, No. 24, July 15, 2024
A.
				  Requirement.
1. If the estimated tax is
				  greater than $150, the fiduciary shall make a declaration of estimated tax for
				  (i) any taxable year of an estate which ends two or more years after the date
				  of death of the decedent; and (ii) every taxable year of a trust.
2. Examples.
a. Decedent A died on September 1, 1986. For
				  the taxable year 1988 the executor of A's estate expects to receive $10,000
				  income which will not be used to meet administrative expenses or distributed to
				  the beneficiaries. The executor must file a declaration because the fiduciary
				  income tax due on $10,000 will exceed $150 and the end of the taxable year,
				  December 31, 1988, is more than two years after the date of death of the
				  decedent.
b. The ABC trust expects
				  to receive $10,000 income in 1988 but under the terms of the trust instrument
				  the trustee is required to distribute all income to the beneficiaries. No
				  declaration is required because the trustee's fiduciary income tax liability
				  will be zero.
c. Same facts as in
				  example b except that the beneficiaries are minors. The trustee may accumulate
				  income during the minority of the beneficiaries, and anticipates doing so. The
				  trustee must file a declaration because the trustee's fiduciary income tax on
				  $10,000 will exceed $150.
Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 115 - FIDUCIARY INCOME TAX › Part II - Fiduciary Estimated Tax › Section 23VAC10-115-151 - Amendments of declaration

Current through Register Vol. 40, No. 24, July 15, 2024
If any amendment of a declaration is filed, the remaining
					 installments, if any, shall be ratably increased or decreased (as the case may
					 be) to reflect any increase or decrease in the estimated tax by reason of such
					 amendment. If any amendment is made after September 15 of the taxable year, any
					 increase in the estimated tax by reason thereof shall be paid at the time of
					 making such amendment.
Statutory Authority: §
												58.1-203 of the Code of Virginia.
Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 115 - FIDUCIARY INCOME TAX › Part II - Fiduciary Estimated Tax › Section 23VAC10-115-152 - Application to short taxable year

Current through Register Vol. 40, No. 24, July 15, 2024
A. In the case of a short taxable year of an
				  estate or trust for which a declaration is required to be filed the estimated
				  tax shall be paid in equal installments, one at the time of filing the
				  declaration, one on the 15th day of the sixth month of the taxable year and
				  another on the 15th day of the ninth month of such year unless the short
				  taxable year closed during or prior to such sixth or ninth month, and one on
				  the 15th day of the first month of the succeeding taxable year.
B. The provisions of subdivision 5 of
				  23VAC10-115-150 relating to
				  payment of estimated tax in any case in which the declaration is filed after
				  the due date, shall also apply to the payment of the estimated tax for short
				  taxable years.
C. For example, if
				  the short taxable year is the period of 10 months from March 1, 1988, to
				  December 31, 1988, and the declaration is required to be filed on or before
				  June 15, 1988 (the fifteenth day of the fourth month), the estimated tax is
				  payable in four equal installments on June 15 with the declaration, August 15,
				  1988, November 15, 1988, and January 15, 1989.
Statutory Authority
§§ 58.1-203 and 58.1-491 of the Code of
						Virginia.
Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 115 - FIDUCIARY INCOME TAX › Part II - Fiduciary Estimated Tax › Section 23VAC10-115-153 - Other payment dates

Current through Register Vol. 40, No. 24, July 15, 2024
A.
				  Fiscal year. If the estate or trust has a taxable year other than a calendar
				  year then the payments shall be due on the fifteenth day of the fourth, sixth,
				  or ninth month of the taxable year or on the fifteenth day of the first month
				  of the succeeding taxable year, as appropriate.
B. Installments or entire estimated tax paid
				  in advance. A fiduciary may elect to pay any installment of the estimated tax
				  before the date prescribed for its payment. A fiduciary may also elect to file
				  a declaration of estimated tax in the closing days of a calendar year for the
				  taxable year about to begin, and may pay in full the amount of the estimated
				  tax for such taxable year at the time the declaration is filed.
Statutory Authority: §
												58.1-203 of the Code of Virginia.
Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 115 - FIDUCIARY INCOME TAX › Part II - Fiduciary Estimated Tax › Section 23VAC10-115-154 - Application of payments

Current through Register Vol. 40, No. 24, July 15, 2024
A. All
				  payments of estimated tax shall be applied toward the income tax liability of
				  the estate or trust for the taxable year. Payments of estimated tax may not be
				  applied toward any other tax or taxable year unless and until an income tax
				  return is filed claiming a refund. In extraordinary circumstances where the
				  fiduciary is not required to file a Virginia income tax return the fiduciary
				  may request a refund of estimated tax.
B. Payments of estimated tax may not be
				  applied toward the income or estimated tax liability of a beneficiary of an
				  estate or trust even if the fiduciary distributes all or a portion of the
				  distributable net income to the beneficiary after making installment payments
				  of estimated tax.
C. Example: For
				  the calendar year 1988 the trustee anticipates earning $50,000 income after
				  expenses. The terms of the trust require the trustee to pay $10,000 annually to
				  the beneficiary and accumulate the balance of the income; however, the trustee
				  is permitted to pay additional sums to the beneficiary if required for the
				  beneficiary's support. Initially, the trustee anticipates that 1988 taxable
				  income will be $40,000 after the distribution deduction and makes installment
				  payments of estimated tax in the amount of $407 on May 1, 1988, June 15, 1988,
				  and September 15, 1988. In December the trustee finds it necessary to
				  distribute an additional $25,000 for the beneficiary's support. The trustee
				  makes no installment payment on January 15, 1989.
1. The trust will have taxable income of
				  $15,000 after the distribution deduction on which a tax of $620 will be due.
				  Since the estimated tax payments total $1,221, the trust will be entitled to a
				  refund of $601.
2. No part of the
				  trust's estimated tax payments may be transferred to the account of the
				  beneficiary even though $25,000 of income was distributed to the beneficiary
				  after the trustee had paid estimated tax on it.
Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 115 - FIDUCIARY INCOME TAX › Part II - Fiduciary Estimated Tax › Section 23VAC10-115-155 - Credit against estimated tax liability

Current through Register Vol. 40, No. 24, July 15, 2024
If the annual income tax return shows that the estate or
					 trust is entitled to a refund of income tax by reason of overestimating and
					 overpaying estimated tax the fiduciary may elect to have all or a portion of
					 such refund applied to the payment of estimated tax liability for the following
					 taxable year.
Statutory Authority
§§ 58.1-203 and 58.1-491 of the Code of
						Virginia.
Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 115 - FIDUCIARY INCOME TAX › Part II - Fiduciary Estimated Tax › Section 23VAC10-115-160 - Additions to the tax

Current through Register Vol. 40, No. 24, July 15, 2024
A. In
				  the case of an underpayment of any installment of estimated tax by an estate or
				  trust, except as provided in
				  23VAC10-115-163, there shall be
				  added to the income tax for the taxable year an amount determined at the
				  underpayment rate established for interest under § 58.1-15 of the Code of
				  Virginia, upon the amount of the underpayment (determined under
				  23VAC10-115-161 ), for the period
				  of the underpayment (determined under
				  23VAC10-115-162 ). The amount of
				  such addition to the tax shall be reported and paid at the time of filing the
				  fiduciary income tax return for the taxable year.
B. For the purpose of computing the addition
				  with respect to an underpayment of the final installment, the underpayment rate
				  which applies to the third month following the end of the taxable year shall
				  apply until the due date of the income tax return. For example, in the case of
				  an estate or trust on a calendar year reporting for 1988, the underpayment rate
				  in effect for the month of March, 1989, will apply through May 1, 1989, in
				  computing the addition to the tax.
Statutory Authority
§§ 58.1-203 and 58.1-492 of the Code of
						Virginia.
Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 115 - FIDUCIARY INCOME TAX › Part II - Fiduciary Estimated Tax › Section 23VAC10-115-161 - Amount of underpayment

Current through Register Vol. 40, No. 24, July 15, 2024
For the purpose of
					 23VAC10-115-160, the amount of the
					 underpayment shall be the excess of:
1. The amount of the installment which would
				  be required to be paid if the estimated tax were equal to 90% of the income
				  tax, whether or not the fiduciary filed a return for such taxable year,
				  over
2. The amount, if any, of the
				  installment paid on or before the last date prescribed for such
				  payment.
Statutory Authority
§§ 58.1-203 and 58.1-492 of the Code of
						Virginia.
Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 115 - FIDUCIARY INCOME TAX › Part II - Fiduciary Estimated Tax › Section 23VAC10-115-162 - Period of underpayment

Current through Register Vol. 40, No. 24, July 15, 2024
The period of the underpayment shall run from the date the
					 installment was required to be paid to the earlier of the following
					 dates:
1. May 1, if a calendar year,
				  or the 15th day of the fourth month following the close of the taxable year, if
				  a fiscal year, or
2. With respect
				  to any portion of the underpayment, the date on which such portion is paid. For
				  purposes of this subdivision, a payment of estimated tax on any installment
				  date shall be considered a payment of any previous underpayment only to the
				  extent such payment exceeds the amount of the installment determined under
				  subdivision 1 of
				  23VAC10-115-161 for such
				  installment date.
3. Example: The
				  principles of
				  23VAC10-115-160,
				  23VAC10-115-161, and
				  23VAC10-115-162 may be illustrated
				  by the following: On or before May 1, 1988, the trustee of The Jones Trust
				  could reasonably expect the fiduciary's Virginia tax liability for calendar
				  year 1988 to exceed $150. Therefore, the trustee timely makes four installment
				  payments: $1,500 on May 1, 1988, and June 15, 1988, and $2,000 on September 15,
				  1988, and January 15, 1989. When the fiduciary income tax return is filed on
				  May 1, 1989, the tax liability is $10,000. The total paid ($7,000) is less than
				  90% of the tax ($9,000). Therefore, an addition to the tax in the amount of
				  $174.56 is due, computed as follows:
INSTALLMENT 1st 2nd 3rd 4th
AMOUNT OF UNDERPAYMENT
90% of the tax / 4 2,250.00 2,250.00 2,250.00
					 2,250.00
Actual Payment 1,500.00 1,500.00 2,000.00 2,000.00
Underpayment 750.00 750.00 250.00 250.00
PERIOD OF UNDERPAYMENT
Date due 5/1/88 6/15/88 9/15/88 1/15/89
Date Paid 5/1/89 5/1/89 5/1/89 5/1/89
No. of days (total) 365 320 228 106
No. of days underpayment is
subject to each rate
4/1/88 - 6/30/88 at 10% 60 15 0 0
7/1/88 - 9/30/88 at 10% 92 92 15 0
10/1/88 - 12/31/88 at 11% 92 92 92 0
1/1/89 - 5/1/89 at 11% 121 121 121 106
ADDITION TO THE TAX
4/1/88 - 6/30/88 at 10% 12.33 3.08 0.00 0.00
7/1/88 - 9/30/88 at 10% 18.90 18.90 1.03 0.00
10/1/88 - 12/31/88 at 11% 20.79 20.79 6.93 0.00
1/1/89 - 5/1/89 at 11% 27.35 27.35 9.12 7.99
Total addition = 174.56 79.37 70.12 17.08
					 7.99
Statutory Authority
§§ 58.1-203 and 58.1-492 of the Code of
						Virginia.
Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 115 - FIDUCIARY INCOME TAX › Part II - Fiduciary Estimated Tax › Section 23VAC10-115-163 - Additions to the tax; exceptions

Current through Register Vol. 40, No. 24, July 15, 2024
A. Notwithstanding the provisions of
				  23VAC10-115-160 through
				  23VAC10-115-162, the addition to
				  the tax shall not be imposed if the income tax for the taxable year is less
				  than $150.
B. Notwithstanding the
				  provisions of
				  23VAC10-115-160 through
				  23VAC10-115-162, the addition to
				  the tax with respect to an underpayment of any installment shall not be imposed
				  if the total payments of estimated tax made on or before the last date
				  prescribed for the payment of such installment equals or exceeds the amount
				  which would have been required to be paid on or before such date if the
				  estimated tax were any of the following:
1.
				  The tax shown on the return of the estate or trust for the preceding taxable
				  year, if a return showing a liability for tax was filed for the preceding
				  taxable year and such preceding year was a taxable year of 12 months.
2. An amount equal to the tax computed, at
				  the rates applicable to the taxable year, on the basis of the facts shown on
				  the return for, and the law applicable to, the preceding taxable
				  year.
3. An amount equal to 90% of
				  the tax for the taxable year computed by placing on an annualized basis the
				  taxable income for the months in the taxable year ending before the month in
				  which the installment is required to be paid. Credits shall not be taken into
				  account when computing the tax on annualized income. For purposes of this
				  subdivision the taxable income shall be placed on an annualized basis by:
a. Multiplying by 12 (or, in the case of a
				  taxable year of less than 12 months, the number of months in the taxable year)
				  the taxable income for the months in the taxable year ending before the month
				  in which the installment is required to be paid, and
b. Dividing the resulting amount by the
				  number of months in the taxable year ending before the month in which such
				  installment date falls.
4. An amount equal to 90% of the tax
				  computed, at the rates applicable to the taxable year, on the basis of the
				  actual taxable income for the months in the taxable year ending before the
				  month in which the installment is required to be paid. The periods involved,
				  for a calendar year taxpayer, are January 1 to April 30, January 1 to May 31,
				  and January 1 to August 31. Virginia taxable income for the applicable period
				  is computed in accordance with § 58.1-361 of the Code of Virginia for the
				  four, five or eight month period, as applicable. Credits shall not be taken
				  into account when computing the tax under this subdivision.
Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 115 - FIDUCIARY INCOME TAX › Part II - Fiduciary Estimated Tax › Form - FORMS (23VAC10-115)

Current through Register Vol. 40, No. 24, July 15, 2024
Virginia Fiduciary Income Tax Return, Form 770.
Enterprise Zone Credit, Form 301 (eff. 9/92).
Computation of ACRS Subtraction, Form 302 (eff.
					 8/92).
Underpayment of Estimated Tax by Individuals, Estates and
					 Trusts, Form 760C.
Virginia Estimated Individual Income Tax Declaration and
					 Forms for Individuals, Estates and Trusts, Form 760ES.
Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 120 - Corporation Income Tax › Section 23VAC10-120-10 - Conformity of terms to IRC (Internal Revenue Code)

Current through Register Vol. 40, No. 24, July 15, 2024
A. In general.
1. Chapter 3 of Title 58.1 of the Code of
				Virginia imposes an income tax upon Virginia income. Generally, Virginia
				taxable income is federal taxable income under the laws of the United States
				with certain adjustments and modifications set forth in detail elsewhere in
				this chapter and the regulations thereunder.
2. The words and expressions used in the
				chapter shall have the same meaning as the same words or expressions used in
				comparable context in the laws of the United States unless the context of the
				words or expressions in this chapter clearly requires a different meaning. The
				meaning of a word or expression is clearly required to be different from the
				meaning of such word or expression in the laws of the United States if:
a. Chapter 3 of Title 58.1 expressly defines
				such word or expression, or
b. if
				required to prevent an item from being subject to double taxation or double
				deduction in a single return, or
c.
				if the Commissioner determines that a different meaning is required because the
				word or expression is not used in a comparable context in the laws of the
				United States and publishes such determination by regulation.
Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 120 - Corporation Income Tax › Section 23VAC10-120-70 - Imposition of tax

Current through Register Vol. 40, No. 24, July 15, 2024
A tax at the rate of six percent is imposed on the Virginia
				  taxable income of every corporation organized under Virginia law and every
				  foreign corporation having income from Virginia sources, as defined in
				  23VAC10-120-20, regardless of
				  whether or not such foreign corporation has registered with the State
				  Corporation Commission and obtained a certificate of authority to transact
				  business in Virginia.
Statutory Authority: §
											58.1-203 of the Code of Virginia.
Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 120 - Corporation Income Tax › Section 23VAC10-120-81 - Telecommunications companies; tax administration

Current through Register Vol. 40, No. 24, July 15, 2024
A. Generally. Effective for taxable years
				beginning on and after January 1, 1989, telecommunications companies formerly
				subject to the license tax on gross receipts, administered by the State
				Corporation Commission (SCC), will be subject to the Virginia corporation
				income tax. This change is the result of legislation enacted by the 1988
				Virginia General Assembly (1988 Acts, Chapter 899).
B. State Corporation Commission. While no
				longer subject to the state license tax on gross receipts or to the state pole
				line tax, telecommunications companies will still pay regulatory revenue taxes
				to the SCC based on gross receipts (§§ 58.1-2660 through 58.1-2665 of
				the Code of Virginia). The SCC will continue to be the central state agency
				responsible for the assessment of all property of telecommunications companies.
The SCC will make all determinations regarding a company's
				  status as a telecommunications company. The SCC will determine and certify the
				  amount of gross receipts, as defined by law, to the department annually.
Telecommunications companies may petition the SCC for review
				  and correction of the company's status or the amount of gross receipts
				  certified. The petition should be in compliance with the Rules of Practice and
				  Procedures of the SCC.
C.
				Department of Taxation. For taxable years beginning on and after January 1,
				1989, telecommunications companies will be subject to the greater of the
				Virginia corporation income tax or to a minimum tax based on gross receipts. In
				order to minimize the effects of the transition from the license tax on gross
				receipts to the corporation income tax, the full corporate income tax will be
				phased in over a 10-year period from 1989 through 1998. During this phase in
				period, telecommunications companies, which pay the corporate income tax, may
				be allowed a credit against the tax under certain conditions. If a company is
				subject to the minimum tax, it will not be eligible for a credit.
D. Other regulations. Except as provided in
				this regulation, the provisions of all regulations adopted pursuant to §
				58.1-203 of the Code of Virginia to interpret Title 58.1 of the Code of
				Virginia are applicable to the taxation of telecommunications companies by the
				Department of Taxation.
Statutory Authority
§§ 58.1-203 and 58.1-400.1 of the Code of
					 Virginia.
Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 120 - Corporation Income Tax › Section 23VAC10-120-82 - Telecommunications companies; imposition of tax

Current through Register Vol. 40, No. 24, July 15, 2024
A. Generally. Telecommunications companies
				must calculate both their minimum tax as provided in
				23VAC10-120-83 and their income
				tax liability as provided in
				23VAC10-120-84 for each taxable
				year. For each taxable year, the tax liability of a telecommunications company
				will be the greater of its minimum tax or of its corporate income
				tax.
B. Amended return. If due to a
				change in federal taxable income, or for any other reason, the Virginia taxable
				income or gross receipts of a telecommunications company is changed, an amended
				return must be filed. The minimum tax and corporate income tax must be
				recomputed to determine which tax is applicable to the telecommunications
				company.
EXAMPLE 1: Telecommunications Company (TC) is a calendar
				  year filer for federal income tax purposes. For calendar year 1990, it has
				  $200,000 in gross receipts and Virginia taxable income equal to $35,000. TC's
				  minimum tax liability is $2,400 ($200,000 X 1.2%) and its Virginia income tax
				  is $2,100 ($35,000 X 6.0%). Because TC's minimum tax liability exceeds its
				  income tax liability, it is subject to the minimum tax and must pay $2,400 in
				  tax.
EXAMPLE 2: Same facts as in Example 1. In 1993 the Internal
				  Revenue Service audits TC for calendar year 1990 and determines that the
				  company overreported its wage expense by $6,000; thus TC's federal taxable
				  income for calendar year 1990 was underreported by $6,000. TC subsequently
				  amends its Virginia income tax return for calendar year 1990 to report the
				  additional $6,000 in taxable income. The amended return still shows a minimum
				  tax liability of $2,400 (no charge in gross receipts) and an income tax
				  liability of $2,460, 6.0% of ($35,000 + 6,000). Since TC's income tax liability
				  is now higher than its minimum tax liability, it is now subject to the income
				  tax. TC owes the department $60 ($2,460 - $2,400).
Statutory Authority
§§ 58.1-203 and 58.1-400.1 of the Code of
					 Virginia.
Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 120 - Corporation Income Tax › Section 23VAC10-120-84 - Telecommunications companies; corporation income tax

Current through Register Vol. 40, No. 24, July 15, 2024
A. Generally. With the exception of the
				differences set forth in these regulations, a telecommunications company shall
				compute its Virginia taxable income and corporation income tax in accordance
				with the requirements applicable to corporations generally.
B. Business entirely within Virginia.
1. Generally. For purposes of determining if
				the entire business of a telecommunications company is conducted within
				Virginia, the provisions of § 58.1-405 of the Code of Virginia and
				23VAC10-120-120 shall be
				applicable.
2. Computation of
				income tax. If under the provisions of subdivision 1 of this section, it is
				determined that the entire business of a telecommunications company is
				conducted within Virginia, the tax imposed by § 58.1-400 of the Code of
				Virginia shall be upon the entire Virginia taxable income.
Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 120 - Corporation Income Tax › Section 23VAC10-120-88 - Telecommunications companies; estimated taxes

Current through Register Vol. 40, No. 24, July 15, 2024
A. Generally. The requirements imposed under
				§ 58.1-500 (et seq.) of the Code of Virginia regarding the filing of a
				declaration of estimated income taxes and the payment of estimated income
				taxes, shall be applicable to telecommunications companies regardless of
				whether such company expects to be subject to the minimum tax or to the
				corporate income tax.
B. Exceptions
				to the addition to tax.
1. For purposes of
				determining the applicability of the exceptions under which the addition to tax
				for the underpayment of any installment of estimated taxes will not be imposed,
				it is irrelevant whether the tax shown on the return for the preceding taxable
				year is corporate income tax, minimum tax or a license tax on gross
				receipts.
2. The addition to tax
				for the failure to pay estimated income tax (§ 58.1-504 ) will not be
				imposed on the tax liability resulting from the transitional short taxable year
				return required to be filed for the period that begins after December 31, 1988,
				and ends before the first day of a telecommunications company's 1989 taxable
				year.
Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 120 - Corporation Income Tax › Section 23VAC10-120-89 - Noncorporate telecommunications companies

Current through Register Vol. 40, No. 24, July 15, 2024
A. Generally. Unless specifically exempt
				under § 58.1-401 of the Code of Virginia, every telecommunications company
				certified as such by the SCC is subject to the minimum tax even though it may
				be exempt from, or not subject to, the corporate income tax under §
				58.1-400 of the Code of Virginia. To the extent that the income of a
				noncorporate telecommunications company is subject to Virginia income tax at
				the entity level or in the hands of a partner or other person for whom the
				income retains its character, the telecommunications company will be deemed to
				have paid corporate income tax for purposes of computing the minimum tax and
				credit under subsection B.
B.
				Computation of minimum tax and credit. A noncorporate telecommunications
				company must calculate its minimum tax liability as provided in
				23VAC10-120-83. If the income of
				the noncorporate telecommunications company is deemed to be subject to Virginia
				income tax under subsection A, the minimum tax liability shall be compared to
				the income tax liability of the entity computed as if it were a corporation.
				The minimum tax, income tax, and credit provisions shall be applied as follows:
1. Minimum tax. If the income of the entity
				is not deemed to be subject to Virginia income tax under subsection A, the
				entity shall pay the minimum tax. If the income of the entity is deemed to be
				subject to Virginia income tax under subsection A, and if the minimum tax
				exceeds the entity's income tax computed as if it were a corporation, the
				entity must pay an amount equal to the difference between the minimum tax and
				the corporate income tax.
2. Income
				tax. If the income of the entity is deemed to be subject to Virginia income tax
				under subsection A, and if the minimum tax does not exceed the entity's income
				tax computed as if it were a corporation, the entity shall not be required to
				pay the corporate income tax under § 58.1-400 merely because it computes
				such a tax for comparison with the minimum tax liability.
3. Telecommunications company income tax
				credit. If the income of the entity is deemed to be subject to Virginia income
				tax under subsection A, and if the entity's income tax computed as if it were a
				corporation exceeds 1.3% of its gross receipts, then the entity is eligible for
				a credit under § 58.1-434.T he credit shall be computed by the entity as
				if it were a corporation but shall be claimed by the entity, partner, or other
				person, as the case may be, in proportion to the portion of the entity's income
				included in each taxpayer's taxable income. In no case shall the credit
				allowable exceed the income tax liability of the entity, partner, or other
				person.
Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 120 - Corporation Income Tax › Section 23VAC10-120-89.1 - Telecommunications companies; administrative appeals

Current through Register Vol. 40, No. 24, July 15, 2024
A. State Corporation Commission. As set forth
				under 23VAC10-120-81, the SCC will make
				all determinations regarding a company's status as a telecommunications company
				and will determine and certify the amount of gross receipts, as defined in
				§ 58.1-400.1 of the Code of Virginia, to the department annually.
Telecommunications companies may petition the SCC for review
				  and correction of the company's status or the amount of gross receipts
				  certified. The petition should be in compliance with the Rules of Practice and
				  Procedures of the SCC.
B.
				Department of Taxation. Company status or gross receipts. Any application for
				correction of an erroneous assessment pursuant to § 58.1-1821 of the Code
				of Virginia that is contingent upon the status of a company as a
				telecommunications company or upon the amount of gross receipts of a
				telecommunications company, will be held without action until a final
				determination has been made by the SCC on a petition filed pursuant to the
				Rules of Practice and Procedures of the SCC.
Any application pursuant to § 58.1-1821 filed with the
				  Department of Taxation that is not contingent upon the status of a company as a
				  telecommunications company or upon the amount of gross receipts of a
				  telecommunications company will be acted upon by the Department of
				  Taxation.
Statutory Authority
§§ 58.1-203 and 58.1-400.1 of the Code of
					 Virginia.
Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 120 - Corporation Income Tax › Section 23VAC10-120-90 - Exemptions and exclusions

Current through Register Vol. 40, No. 24, July 15, 2024
A. In
				general. Generally, any corporation which is subject to federal income tax and
				has some income from Virginia sources (as defined in
				23VAC10-120-20 ) will also be
				subject to Virginia income tax unless specifically exempted. Even though exempt
				from Virginia income tax such corporations may be required to file a return
				under Va. Code § 58.1-441.
B.
				Public service corporations. Public service corporations which pay a State
				franchise tax or license tax upon gross receipts under Chapter 26 (§
				58.1-2600 et seq.) of Title 58.1 of the Code of Virginia are exempt from the
				Virginia income tax. The tax levied must be based upon the gross receipts of
				the corporation and not solely on the value of the property in order for the
				corporation to be exempt from income tax.
1.
				Railway companies are specifically subject to income tax by Va. Code §
				58.1-2608.
2. Pipeline
				distribution companies pay a franchise tax on gross receipts from sales to a
				consumer of natural or manufactured gas and are exempt from taxation on the net
				income from such sales. The net income of pipeline transmission companies from
				sales to those who are not consumers is specifically subject to income tax by
				Va. Code § 58.1-2627.1.
3.
				Water, heat, light and power companies are specifically exempted from income
				tax by § 58.1-2690 of the Code of Virginia.
4. Motor vehicle carriers pay a tax on
				property and fuel used within the state, but not on gross receipts, and
				therefore are subject to income tax. Va. Code § 58.1-2701.
5. Taxes on gross receipts imposed by Title
				58.1, Chapter 26, Article 6, are special revenue taxes and do not exempt a
				corporation from income tax. Va. Code § 58.1-2660.
Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 120 - Corporation Income Tax › Section 23VAC10-120-100 - Virginia taxable income; definitions; exceptions

Current through Register Vol. 40, No. 24, July 15, 2024
A. Federal taxable income. A Virginia income
				tax is imposed on all income from Virginia sources which is defined as federal
				taxable income with certain specified additions, subtractions and exemptions.
				For the purpose of determining Virginia taxable income, the term "federal
				taxable income" means all income from whatever source derived and however named
				on which a federal income tax is imposed.
B. For most corporations "federal taxable
				income" for Virginia income tax purposes will be the amount shown on the line
				of federal form 1120 designated "taxable income" (after net operating loss
				deduction and special deductions). However, there are some exceptions,
				including, but not limited to, the following:
1. Regulated investment companies file
				federal form 1120 but do not follow normal corporate rules for computing the
				tax. Separate taxes are imposed on investment company taxable income and on
				capital gains. The federal taxable income of a regulated investment company for
				Virginia purposes is the sum of:
(i)
				"investment company taxable income" defined in IRC § 852(b) and
(ii) the amount of capital gains defined in
				IRC § 852(b).
Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 120 - Corporation Income Tax › Section 23VAC10-120-101 - Virginia taxable income; additions

Current through Register Vol. 40, No. 24, July 15, 2024
The purpose of the additions specified in § 58.1-402 of
				  the Code of Virginia is to add to Virginia taxable income certain items
				  excluded or deducted from federal taxable income. If an item was fully included
				  in federal taxable income, then it will not be added to Virginia taxable income
				  by this section. If an item was only partially included in federal taxable
				  income, then the item will be added to Virginia taxable income only to the
				  extent it was excluded or deducted from federal taxable income. If an item
				  excluded or deducted from federal taxable income has already been included in
				  Virginia taxable income by operation of some other section of the Code of
				  Virginia, then the item will not be added again under this section. The
				  additions are:
A. Interest on
				obligations of other states.
1. Interest on
				the obligations of any state other than Virginia or on the obligations of a
				political subdivision of such other state must be added to federal taxable
				income.
2. IRC § 265 prohibits
				the deduction of expenses allocable to or interest on indebtedness incurred or
				continued to purchase or carry obligations exempt from federal income tax. If a
				corporation has interest income on obligations of other states and also has
				expenses or interest which were not deducted by operation of IRC § 265,
				then the addition shall be reduced by the portion of such expenses or interest
				which is attributable to the interest income on obligations of other states.
EXAMPLE: Taxpayer has $3,000 of income exempt from federal
				  income tax of which $1,000 is on obligations of a political subdivision of
				  Virginia and $2,000 on obligations of political subdivisions of states other
				  than Virginia. Application of IRC § 265 barred deduction of $300 from
				  federal taxable income. The addition is $1,800 calculated as follows:
2,000 -
[300 x 2,000]
= 1,800
3,000
3.
				If the interest is on an obligation created by a compact or agreement to which
				Virginia is a party, such interest shall not be added to Virginia taxable
				income.
Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 120 - Corporation Income Tax › Section 23VAC10-120-102 - Virginia taxable income; subtractions

Current through Register Vol. 40, No. 24, July 15, 2024
The purpose of the subtractions specified in § 58.1-402
				  of the Code of Virginia is to subtract from Virginia taxable income certain
				  items included in federal taxable income. If an item was partially excluded or
				  deducted in determining federal taxable income, then it shall be subtracted
				  from Virginia taxable income only to the extent that it was included in federal
				  taxable income. If an item has already been excluded from Virginia taxable
				  income under this chapter, then it shall not be subtracted again under this
				  section. The subtractions are:
A.
				Interest or dividends on obligations of the United States or Virginia.
1. "Obligation" means a debt obligation or
				security issued by the United States or any authority, commission or
				instrumentality of the United States of by the Commonwealth of Virginia or any
				of its political subdivisions, which obligation or security is issued in the
				exercise of the borrowing power of the United States or Virginia and is backed
				by the full faith and credit of the United States or Virginia.
2. Guarantees by the United States or
				Virginia of obligations of private individuals or corporations are merely
				contingent obligations of the United States or Virginia even though the
				guarantees may be backed by the full faith and credit of the United States or
				Virginia. The obligation does not become an obligation of the United States or
				Virginia because the guarantee and interest and dividends paid on such
				guaranteed obligations do not qualify for the subtraction unless specified
				exempted by statute.
3. Specific
				statutory exemptions exist for certain securities issued by particular federal
				or Virginia agencies or political subdivisions. If a federal or Virginia
				statute exempts from state taxation the interest or dividends on specific
				securities of a particular agency or political subdivision then such interest
				or dividends qualify for the subtraction.
For examples of specific statutory exemptions see §
				  15.1-1383 of the Code of Virginia and 12 USC § 2055.
4. Repurchase agreements are usually
				obligations issued by financial institutions which are secured by U.S.
				obligations exempt from Virginia income taxation under subparagraphs a or c
				above. In such cases the interest paid by the financial institutions to
				purchasers of repurchase agreements does not qualify for the subtraction.
				Repurchase agreements issued following current commercial practice will be
				regarded as obligations of the issuing financial institution. However, if the
				purchaser is regarded as the true owner of the underlying exempt obligation,
				the interest will qualify for the subtraction even though collected by the
				seller and distributed to the purchaser. Any claim of such ownership must be
				substantiated by a taxpayer claiming a subtraction.
Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 120 - Corporation Income Tax › Section 23VAC10-120-110 - Additional modifications

Current through Register Vol. 40, No. 24, July 15, 2024
A. In
				general. In addition to the modifications set forth in § 58.1-402 of the
				Code of Virginia for determining Virginia taxable income for corporations
				generally, the adjustments set forth in subsection B shall be made to the
				federal taxable income of savings and loan associations and as set forth in
				subsections C and D below for railway companies.
B. Addition for bad debts.
1. If the federal bad debt deduction is based
				on a percentage of income, such amount shall be added to federal taxable
				income. After federal taxable income has been adjusted by all of the additions
				and subtractions in § 58.1-402 of the Code of Virginia and the bad debt
				addition a new bad debt deduction is determined by applying to the adjusted
				federal taxable income the same percentage used to compute the federal bad debt
				deduction. The new bad debt deduction is then subtracted from the adjusted
				federal taxable income to arrive at Virginia taxable income.
2. If the federal bad debt deduction is
				computed by a method other than the percentage of net income (such as the
				experience method) then no addition or subtraction is required for the bad debt
				deduction.
Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 120 - Corporation Income Tax › Section 23VAC10-120-120 - Business entirely within Virginia

Current through Register Vol. 40, No. 24, July 15, 2024
A. In general. If the entire business of a
				corporation is conducted within Virginia, the tax imposed by § 58.1-400 of
				the Code of Virginia shall be upon the entire Virginia taxable income. A
				corporation is presumed to be doing business entirely within Virginia unless it
				is subject to one of the following taxes in another state:
1. A tax imposed on net income, or
2. A franchise tax measured by net income,
				or
3. A franchise tax for the
				privilege of doing business.
Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 120 - Corporation Income Tax › Section 23VAC10-120-130 - Allocation and apportionment

Current through Register Vol. 40, No. 24, July 15, 2024
A. In general.
1. If a corporation has income from business
				activity which is subject to taxation both within and without Virginia, as
				defined in
				23VAC10-120-120, the corporation
				shall allocate and apportion its Virginia taxable income as provided in
				§§ 58.1-407 through 58.1-420 of the Code of Virginia.
2. Only corporations allocate and apportion
				income. Individuals and other taxpaying entities follow other rules.
Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 120 - Corporation Income Tax › Section 23VAC10-120-140 - How dividends allocated

Current through Register Vol. 40, No. 24, July 15, 2024
A. In general. If a corporation is subject to
				tax in Virginia and at least one other state, as defined in § 58.1-405 of
				the Code of Virginia, it must allocate and apportion its Virginia taxable
				income. Dividends are allocated to the commercial domicile of the corporation.
				All other income is apportioned.
B.
				Definition of dividend. A distribution to the taxpaying corporation from
				another corporation shall be allocated if such distribution is treated as a
				dividend under IRC § 316.
C.
				Amount allocated. Dividends are allocated only to the extent that they are
				included in Virginia taxable income. Allocable dividends are gross dividends
				received reduced by the following:
1. Any
				dividends exempt from taxation under federal law.
2. The dividends received deduction allowed
				by federal law.
3. Dividends which
				are subtracted from federal taxable income in computing Virginia taxable income
				(e.g. 50% owned corporations, foreign source income, foreign dividend gross up,
				subpart F income). See
				23VAC10-120-102 for
				details.
Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 120 - Corporation Income Tax › Section 23VAC10-120-150 - What income apportioned and how

Current through Register Vol. 40, No. 24, July 15, 2024
A. In general.
1. If a corporation is subject to taxation in
				Virginia and at least one other state (as determined by Va. Code §
				58.1-405 ) then all Virginia taxable income, other than dividends allocable
				under Va. Code § 58.1-407, is apportioned by the appropriate formula. Each
				factor is a fraction (expressed as a decimal carried to 6 places) based on
				activity within Virginia divided by similar activity everywhere. (But see
				subsection B below. The activity must also be effectively connected with a
				trade or business in the United States and produce Virginia taxable
				income).
2. Except as noted below,
				all corporations are required to use a three factor formula based on the
				property, payroll and sales within Virginia. The formula is the average of the
				three factors, except that if the denominator of any fraction is zero, then
				that fraction is not included in the average.
The following types of corporations apportion income using
				  special one-factor formulas:
a. Motor
				carriers according to vehicle miles. Va. Code § 58.1-417.
b. Financial corporations according to cost
				of performance. Va. Code § 58.1-418.
c. Construction corporations using the
				completed contract method according to business within and without Virginia.
				Va. Code § 58.1-419.
d.
				Railway companies according to revenue car miles. Va. Code § 58.1-420.
e. In exceptional circumstances
				any corporation may request permission to use an alternate method. Va. Code
				§ 58.1-421.