CODE OF VIRGINIA

FAILURE TO PAY ESTIMATED TAX (§ 58.1-2648)

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

B. For purposes of subsection A, 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 ninety percent of the tax ascertained for the tax
   year, over

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

C. The period of the underpayment shall run from the date the installment was
required 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 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 B 1 of this section for such
   installment date.

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