A. In case of any underpayment of estimated tax by a corporation, except asprovided in subsection D, there shall be added to the tax for the taxableyear an amount determined at the rate established for interest under §58.1-15, upon the amount of the underpayment (determined under subsection B)for the period of the underpayment (determined under subsection C).
B. For purposes of subsection A, the amount of the underpayment shall be theexcess of:
1. The amount of the installment which would be required to be paid if theestimated tax were equal to ninety percent of the tax shown on the return forthe taxable year or, if no return was filed, ninety percent of the tax forsuch year, over
2. The amount, if any, of the installment paid on or before the last dateprescribed for payment.
C. The period of the underpayment shall run from the date the installment wasrequired to be paid to whichever of the following dates is the earlier:
1. The fifteenth day of the fourth month following the close of the taxableyear.
2. With respect to any portion of the underpayment, the date on which suchportion is paid. For purposes of this subdivision, a payment of estimated taxon any installment date shall be considered a payment of any previousunderpayment only to the extent such payment exceeds the amount of theinstallment determined under subdivision B 1 for such installment date.
D. Notwithstanding the provisions of subsections A, B and C, the addition tothe tax with respect to any underpayment of any installment shall not beimposed if the total amount of all payments of estimated tax made on orbefore the last date prescribed for the payment of such installment equals orexceeds the amount which would have been required to be paid on or beforesuch date if the estimated tax were whichever of the following is the lesser:
1. The tax shown on the return of the corporation for the preceding taxableyear, if a return showing a liability for tax was filed by the corporationfor the preceding taxable year and such preceding year was a taxable year oftwelve months.
2. An amount equal to the tax computed at the rate applicable to the taxableyear but otherwise on the basis of the facts shown on the return of thecorporation for, and the law applicable to, the preceding taxable year.
3. An amount equal to ninety percent of the tax for the taxable year computedby placing on an annualized basis the taxable income:
a. For the first three months of the taxable year, in the case of theinstallment required to be paid in the fourth month,
b. For the first three months or for the first five months of the taxableyear, in the case of the installment required to be paid in the sixth month,
c. For the first six months or for the first eight months of the taxableyear, in the case of the installment required to be paid in the ninth month,and
d. For the first nine months or for the first eleven months of the taxableyear, in the case of the installment required to be paid in the twelfth monthof the taxable year. For purposes of this subdivision, the taxable incomeshall be placed on an annualized basis by (i) multiplying by twelve thetaxable income referred to in subdivision D 3 and (ii) dividing the resultingamount by the number of months in the taxable year (three, five, six, eight,nine, or eleven, as the case may be) referred to in subsection A.
E. For purposes of subsection B, subdivisions D 2 and D 3, the term "tax"means the excess of the tax imposed by this chapter over the sum of anycredits allowable against the tax.
F. The application of this to taxable years of less than twelve months shallbe in accordance with regulations prescribed by the Commissioner.
G. Pipeline distribution companies as defined in § 58.1-2600 and gasutilities, gas suppliers and electric suppliers as defined in § 58.1-400.2that become subject to taxation under this chapter and prior thereto paid theannual license tax based on gross receipts, shall make estimated tax paymentsduring the first year, or short taxable year under subsection E of §58.1-400.2, they are so subject, and notwithstanding subsection D, anyexcesses described in subsection B shall constitute an underpayment for suchyear.
(Code 1950, § 58-151.40; 1968, c. 14; 1977, c. 396; 1983, c. 575; 1984, c.675; 1999, c. 971; 2000, cc. 691, 706.)
A. In case of any underpayment of estimated tax by a corporation, except asprovided in subsection D, there shall be added to the tax for the taxableyear an amount determined at the rate established for interest under §58.1-15, upon the amount of the underpayment (determined under subsection B)for the period of the underpayment (determined under subsection C).
B. For purposes of subsection A, the amount of the underpayment shall be theexcess of:
1. The amount of the installment which would be required to be paid if theestimated tax were equal to ninety percent of the tax shown on the return forthe taxable year or, if no return was filed, ninety percent of the tax forsuch year, over
2. The amount, if any, of the installment paid on or before the last dateprescribed for payment.
C. The period of the underpayment shall run from the date the installment wasrequired to be paid to whichever of the following dates is the earlier:
1. The fifteenth day of the fourth month following the close of the taxableyear.
2. With respect to any portion of the underpayment, the date on which suchportion is paid. For purposes of this subdivision, a payment of estimated taxon any installment date shall be considered a payment of any previousunderpayment only to the extent such payment exceeds the amount of theinstallment determined under subdivision B 1 for such installment date.
D. Notwithstanding the provisions of subsections A, B and C, the addition tothe tax with respect to any underpayment of any installment shall not beimposed if the total amount of all payments of estimated tax made on orbefore the last date prescribed for the payment of such installment equals orexceeds the amount which would have been required to be paid on or beforesuch date if the estimated tax were whichever of the following is the lesser:
1. The tax shown on the return of the corporation for the preceding taxableyear, if a return showing a liability for tax was filed by the corporationfor the preceding taxable year and such preceding year was a taxable year oftwelve months.
2. An amount equal to the tax computed at the rate applicable to the taxableyear but otherwise on the basis of the facts shown on the return of thecorporation for, and the law applicable to, the preceding taxable year.
3. An amount equal to ninety percent of the tax for the taxable year computedby placing on an annualized basis the taxable income:
a. For the first three months of the taxable year, in the case of theinstallment required to be paid in the fourth month,
b. For the first three months or for the first five months of the taxableyear, in the case of the installment required to be paid in the sixth month,
c. For the first six months or for the first eight months of the taxableyear, in the case of the installment required to be paid in the ninth month,and
d. For the first nine months or for the first eleven months of the taxableyear, in the case of the installment required to be paid in the twelfth monthof the taxable year. For purposes of this subdivision, the taxable incomeshall be placed on an annualized basis by (i) multiplying by twelve thetaxable income referred to in subdivision D 3 and (ii) dividing the resultingamount by the number of months in the taxable year (three, five, six, eight,nine, or eleven, as the case may be) referred to in subsection A.
E. For purposes of subsection B, subdivisions D 2 and D 3, the term "tax"means the excess of the tax imposed by this chapter over the sum of anycredits allowable against the tax.
F. The application of this to taxable years of less than twelve months shallbe in accordance with regulations prescribed by the Commissioner.
G. Pipeline distribution companies as defined in § 58.1-2600 and gasutilities, gas suppliers and electric suppliers as defined in § 58.1-400.2that become subject to taxation under this chapter and prior thereto paid theannual license tax based on gross receipts, shall make estimated tax paymentsduring the first year, or short taxable year under subsection E of §58.1-400.2, they are so subject, and notwithstanding subsection D, anyexcesses described in subsection B shall constitute an underpayment for suchyear.
(Code 1950, § 58-151.40; 1968, c. 14; 1977, c. 396; 1983, c. 575; 1984, c.675; 1999, c. 971; 2000, cc. 691, 706.)
A. In case of any underpayment of estimated tax by a corporation, except asprovided in subsection D, there shall be added to the tax for the taxableyear an amount determined at the rate established for interest under §58.1-15, upon the amount of the underpayment (determined under subsection B)for the period of the underpayment (determined under subsection C).
B. For purposes of subsection A, the amount of the underpayment shall be theexcess of:
1. The amount of the installment which would be required to be paid if theestimated tax were equal to ninety percent of the tax shown on the return forthe taxable year or, if no return was filed, ninety percent of the tax forsuch year, over
2. The amount, if any, of the installment paid on or before the last dateprescribed for payment.
C. The period of the underpayment shall run from the date the installment wasrequired to be paid to whichever of the following dates is the earlier:
1. The fifteenth day of the fourth month following the close of the taxableyear.
2. With respect to any portion of the underpayment, the date on which suchportion is paid. For purposes of this subdivision, a payment of estimated taxon any installment date shall be considered a payment of any previousunderpayment only to the extent such payment exceeds the amount of theinstallment determined under subdivision B 1 for such installment date.
D. Notwithstanding the provisions of subsections A, B and C, the addition tothe tax with respect to any underpayment of any installment shall not beimposed if the total amount of all payments of estimated tax made on orbefore the last date prescribed for the payment of such installment equals orexceeds the amount which would have been required to be paid on or beforesuch date if the estimated tax were whichever of the following is the lesser:
1. The tax shown on the return of the corporation for the preceding taxableyear, if a return showing a liability for tax was filed by the corporationfor the preceding taxable year and such preceding year was a taxable year oftwelve months.
2. An amount equal to the tax computed at the rate applicable to the taxableyear but otherwise on the basis of the facts shown on the return of thecorporation for, and the law applicable to, the preceding taxable year.
3. An amount equal to ninety percent of the tax for the taxable year computedby placing on an annualized basis the taxable income:
a. For the first three months of the taxable year, in the case of theinstallment required to be paid in the fourth month,
b. For the first three months or for the first five months of the taxableyear, in the case of the installment required to be paid in the sixth month,
c. For the first six months or for the first eight months of the taxableyear, in the case of the installment required to be paid in the ninth month,and
d. For the first nine months or for the first eleven months of the taxableyear, in the case of the installment required to be paid in the twelfth monthof the taxable year. For purposes of this subdivision, the taxable incomeshall be placed on an annualized basis by (i) multiplying by twelve thetaxable income referred to in subdivision D 3 and (ii) dividing the resultingamount by the number of months in the taxable year (three, five, six, eight,nine, or eleven, as the case may be) referred to in subsection A.
E. For purposes of subsection B, subdivisions D 2 and D 3, the term "tax"means the excess of the tax imposed by this chapter over the sum of anycredits allowable against the tax.
F. The application of this to taxable years of less than twelve months shallbe in accordance with regulations prescribed by the Commissioner.
G. Pipeline distribution companies as defined in § 58.1-2600 and gasutilities, gas suppliers and electric suppliers as defined in § 58.1-400.2that become subject to taxation under this chapter and prior thereto paid theannual license tax based on gross receipts, shall make estimated tax paymentsduring the first year, or short taxable year under subsection E of §58.1-400.2, they are so subject, and notwithstanding subsection D, anyexcesses described in subsection B shall constitute an underpayment for suchyear.
(Code 1950, § 58-151.40; 1968, c. 14; 1977, c. 396; 1983, c. 575; 1984, c.675; 1999, c. 971; 2000, cc. 691, 706.)
