Tax Information by C-Corps Due July 1st or Face $10k Penalty

Date: June 17, 2021

Virginia businesses who are registered as corporations and are a unitary business are required by law in the recently passed state budget to provide information to the Virginia Tax Department related to unitary combined reporting for corporate tax purposes.

 

The Virginia Tax Department sent notices to the 72,000 businesses they have on file who are corporations.  This information is due July 1, 2021 – there are NO exceptions.  Failure to comply will result in a $10,000 penalty.

 

The Tax Department is requesting this information because the Virginia General Assembly has required corporations to submit this report so the Tax Department can put together a report detailing the revenue impacts of combined corporate income tax reporting.

 

Did your corporation receive a letter in the mail about this report? If so, here’s what you’re required to do:

  • You should determine whether you are subject to the requirement to submit a completed report to the Virginia Tax Department

 

  • Tax has developed an optional, brief questionnaire that you may complete to tell them whether or not your corporation falls under this requirement to submit a completed report. You will not be penalized for failing to complete this optional questionnaire.  Only corporations defined as a unitary business are required to file a report with Tax.

 

  • You’ll find the definition of a “unitary business” HERE.

 

  • If your corporation falls under this definition, you are required to file a report with Tax via their Web Upload application. You may only be penalized if you meet the requirements and do not file a report with Tax by July 1.

 

You will find additional information such as FAQs and a link to the full Unitary Combined Reporting Reference Guide HERE.

 

Related Content: Small Business News | Virginia

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