Virginia Code 58.1-2528: Exception to § 58.1-2527.
A. Notwithstanding the provisions of § 58.1-2527, the addition to the tax with respect to any underpayment of any installment shall not be imposed if the total amount of all 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 whichever of the following is the lesser:
Terms Used In Virginia Code 58.1-2528
- Company: means any association, aggregation of individuals, business, corporation, individual, joint-stock company, Lloyds type of organization, organization, partnership, receiver, reciprocal or inter-insurance exchange, trustee or society. See Virginia Code 58.1-2500
- Department: means the Department of Taxation. See Virginia Code 58.1-2500
- Direct gross premium income: means the gross amount of all premiums, assessments, dues and fees collected, received or derived, or obligations taken therefor, from business in this Commonwealth during each year ending December 31, excluding premiums received for reinsurance assumed from licensed insurance companies, without any deduction for dividends paid or deduction on any other account except for premiums returned on cancelled policies, or on account of reduction in rates or reduction in the amount insured, and excluding premiums received or derived to provide insurance of the kinds classified in §§ Virginia Code 58.1-2500
- Estimated tax: means the amount which the insurance company estimates as the amount of the tax imposed by this chapter for the license year, measured by direct gross premium income received or derived in the taxable year. See Virginia Code 58.1-2500
- License year: means the 12-month period beginning on July 1 next succeeding the taxable year and ending on June 30 of the subsequent year. See Virginia Code 58.1-2500
- Month: means a calendar month and "year" means a calendar year. See Virginia Code 1-223
- Tax: means the amount derived by multiplying the direct gross premium income in the taxable year by the tax rate. See Virginia Code 58.1-2500
- Taxable year: means the calendar year preceding the license year upon the basis of which direct gross premium income is computed. See Virginia Code 58.1-2500
1. The tax as ascertained for the preceding license year, and the tax for such preceding license year was computed on the basis of a taxable year of 12 months.
2. An amount equal to the tax computed at the rate applicable to the license year but otherwise on the basis of the facts shown on the report of the insurance company for, and the law applicable to, the preceding license year.
3. An amount equal to 90 percent of the tax measured by direct gross premium income received or derived in the taxable year computed by placing on an annualized basis the taxable direct gross premium income:
a. For the first three months of the taxable year, in the case of the installment required to be paid in the fourth month,
b. For the first three months or for the first five months of the taxable year, 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 taxable year, 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 11 months of the taxable year, in the case of the installment required to be paid in the twelfth month of the taxable year.
B. For purposes of subdivision A 3, the taxable direct gross premium income shall be placed on an annualized basis by multiplying by twelve the taxable direct gross premium income referred to in subdivision A 3, and dividing the resulting amount by the number of months in the taxable year (three, five, six, eight, nine, or 11, as the case may be) referred to in subdivision A 3.
C. The application of this section to taxable years of less than 12 months shall be in accordance with guidelines prescribed by the Department.
Code 1950, § 58-502.6; 1968, c. 13; 1984, c. 675; 2011, c. 850.