{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/58.1-340.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/58.1-340.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/58.1-340.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/58.1-340.html"}],"law_id":75406,"edition_id":1,"section_id":75406,"structure_id":14178,"section_number":"58.1-340","catch_line":"Accounting","history":"Code 1950, \u00a7 58-151.061; 1971, Ex. Sess., c. 171; 1984, c. 675.","full_text":"A\n\nAn individual taxpayer’s taxable year under this chapter shall be the same as his taxable year for federal income tax purposes.B\n\nIf a taxpayer’s taxable year is changed for federal income tax purposes, his taxable year for purposes of this chapter shall be similarly changed. If a taxable year of less than twelve months results from a change of taxable year, the Virginia taxable income shall be prorated under regulations of the Department.C\n\nA taxpayer’s method of accounting under this chapter shall be the same as his method of accounting for federal income tax purposes. In the absence of any method of accounting for federal income tax purposes, Virginia taxable income shall be computed under such method as in the opinion of the Tax Commissioner clearly reflects income.D\n\nIf a taxpayer’s method of accounting is changed for federal income tax purposes, his method of accounting for purposes of this chapter shall be similarly changed. If a taxpayer’s method of accounting is changed, other than from an accrual to an installment method, any additional tax which results from adjustments determined to be necessary solely by reason of the change shall not be greater than if such adjustments were ratably allocated and included for the taxable year of the change and the preceding taxable years, not in excess of two, during which the taxpayer used the method of accounting from which the change is made. If a taxpayer’s method of accounting is changed from an accrual to an installment method, any additional tax for the year of such change of method and for any subsequent year which is attributable to the receipt of installment payments properly accrued in a prior year, shall be reduced by the portion of tax for any prior taxable year attributable to the accrual of such installment payments, in accordance with regulations of the Department.E\n\nIn computing a taxpayer’s Virginia taxable income for any taxable year under a method of accounting different from the method under which the taxpayer’s Virginia taxable income was computed, there shall be taken into account those adjustments which are determined, under regulations prescribed by the Department, to be necessary solely by reason of change in order to prevent amounts from being duplicated or omitted.F\n\nNotwithstanding any of the other provisions of this section, any accounting adjustments made for federal income tax purposes for any taxable year shall be applied in computing the taxpayer’s taxable income for such year.","order_by":null,"text":{"0":{"id":270683,"text":"An individual taxpayer’s taxable year under this chapter shall be the same as his taxable year for federal income tax purposes.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":270684,"text":"If a taxpayer’s taxable year is changed for federal income tax purposes, his taxable year for purposes of this chapter shall be similarly changed. If a taxable year of less than twelve months results from a change of taxable year, the Virginia taxable income shall be prorated under regulations of the Department.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"C"},"2":{"id":270685,"text":"A taxpayer’s method of accounting under this chapter shall be the same as his method of accounting for federal income tax purposes. In the absence of any method of accounting for federal income tax purposes, Virginia taxable income shall be computed under such method as in the opinion of the Tax Commissioner clearly reflects income.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B","next_prefix":"D"},"3":{"id":270686,"text":"If a taxpayer’s method of accounting is changed for federal income tax purposes, his method of accounting for purposes of this chapter shall be similarly changed. If a taxpayer’s method of accounting is changed, other than from an accrual to an installment method, any additional tax which results from adjustments determined to be necessary solely by reason of the change shall not be greater than if such adjustments were ratably allocated and included for the taxable year of the change and the preceding taxable years, not in excess of two, during which the taxpayer used the method of accounting from which the change is made. If a taxpayer’s method of accounting is changed from an accrual to an installment method, any additional tax for the year of such change of method and for any subsequent year which is attributable to the receipt of installment payments properly accrued in a prior year, shall be reduced by the portion of tax for any prior taxable year attributable to the accrual of such installment payments, in accordance with regulations of the Department.","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C","next_prefix":"E"},"4":{"id":270687,"text":"In computing a taxpayer’s Virginia taxable income for any taxable year under a method of accounting different from the method under which the taxpayer’s Virginia taxable income was computed, there shall be taken into account those adjustments which are determined, under regulations prescribed by the Department, to be necessary solely by reason of change in order to prevent amounts from being duplicated or omitted.","type":"section","prefixes":["E"],"prefix":"E","entire_prefix":"E","prefix_anchor":"E","level":1,"prior_prefix":"D","next_prefix":"F"},"5":{"id":270688,"text":"Notwithstanding any of the other provisions of this section, any accounting adjustments made for federal income tax purposes for any taxable year shall be applied in computing the taxpayer’s taxable income for such year.","type":"section","prefixes":["F"],"prefix":"F","entire_prefix":"F","prefix_anchor":"F","level":1,"prior_prefix":"E"}},"ancestry":[{"id":14178,"edition_id":1,"name":"Accounting, Returns, Procedures for Individuals","identifier":"4","label":"article","depth":4,"order_by":1,"parent_id":13152,"metadata":{},"date_created":"2026-06-26 03:47:09","date_modified":"2026-06-26 03:47:09","permalink":{"id":254259,"object_type":"structure","relational_id":14178,"identifier":"4","token":"58.1\/I\/3\/4","url":"\/58.1\/I\/3\/4\/","edition_id":1,"permalink":0,"preferred":1}},{"id":13152,"edition_id":1,"name":"Income Tax","identifier":"3","label":"chapter","depth":3,"order_by":1,"parent_id":12837,"metadata":{},"date_created":"2026-06-26 03:44:21","date_modified":"2026-06-26 03:44:21","permalink":{"id":253267,"object_type":"structure","relational_id":13152,"identifier":"3","token":"58.1\/I\/3","url":"\/58.1\/I\/3\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12837,"edition_id":1,"name":"Taxes Administered by the Department of Taxation","identifier":"I","label":"subtitle","depth":2,"order_by":1,"parent_id":12703,"metadata":{},"date_created":"2026-06-26 03:43:55","date_modified":"2026-06-26 03:43:55","permalink":{"id":252075,"object_type":"structure","relational_id":12837,"identifier":"I","token":"58.1\/I","url":"\/58.1\/I\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12703,"edition_id":1,"name":"Taxation","identifier":"58.1","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:43:49","date_modified":"2026-06-26 03:43:49","permalink":{"id":251959,"object_type":"structure","relational_id":12703,"identifier":"58.1","token":"58.1","url":"\/58.1\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":75406,"structure_id":14178,"section_number":"58.1-340","catch_line":"Accounting","url":"\/58.1-340\/","token":"58.1\/I\/3\/4\/58.1-340","metadata":false},{"id":68211,"structure_id":14178,"section_number":"58.1-341","catch_line":"Returns of individuals","url":"\/58.1-341\/","token":"58.1\/I\/3\/4\/58.1-341","metadata":false},{"id":62449,"structure_id":14178,"section_number":"58.1-341.1","catch_line":"Returns of individuals; required information","url":"\/58.1-341.1\/","token":"58.1\/I\/3\/4\/58.1-341.1","metadata":false},{"id":79637,"structure_id":14178,"section_number":"58.1-341.2","catch_line":"Returns of individuals; notification of tax return data breach","url":"\/58.1-341.2\/","token":"58.1\/I\/3\/4\/58.1-341.2","metadata":false},{"id":75158,"structure_id":14178,"section_number":"58.1-342","catch_line":"Special cases in which nonresident need not file Virginia return","url":"\/58.1-342\/","token":"58.1\/I\/3\/4\/58.1-342","metadata":false},{"id":71576,"structure_id":14178,"section_number":"58.1-343","catch_line":"Place of filing","url":"\/58.1-343\/","token":"58.1\/I\/3\/4\/58.1-343","metadata":false},{"id":66015,"structure_id":14178,"section_number":"58.1-344","catch_line":"Extension of time for filing returns","url":"\/58.1-344\/","token":"58.1\/I\/3\/4\/58.1-344","metadata":false},{"id":61501,"structure_id":14178,"section_number":"58.1-344.1","catch_line":"Postponement of time for performing certain acts","url":"\/58.1-344.1\/","token":"58.1\/I\/3\/4\/58.1-344.1","metadata":false},{"id":70736,"structure_id":14178,"section_number":"58.1-344.2","catch_line":"Voluntary contributions; cost of administration","url":"\/58.1-344.2\/","token":"58.1\/I\/3\/4\/58.1-344.2","metadata":false},{"id":76366,"structure_id":14178,"section_number":"58.1-344.3","catch_line":"Voluntary contributions of refunds requirements","url":"\/58.1-344.3\/","token":"58.1\/I\/3\/4\/58.1-344.3","metadata":false},{"id":83671,"structure_id":14178,"section_number":"58.1-344.4","catch_line":"Voluntary contributions of refunds into Commonwealth Savers Plan accounts","url":"\/58.1-344.4\/","token":"58.1\/I\/3\/4\/58.1-344.4","metadata":false},{"id":78857,"structure_id":14178,"section_number":"58.1-345","catch_line":"Repealed","url":"\/58.1-345\/","token":"58.1\/I\/3\/4\/58.1-345","metadata":false},{"id":66119,"structure_id":14178,"section_number":"58.1-346.1","catch_line":"Expired","url":"\/58.1-346.1\/","token":"58.1\/I\/3\/4\/58.1-346.1","metadata":false},{"id":84849,"structure_id":14178,"section_number":"58.1-346.1:1","catch_line":"Repealed","url":"\/58.1-346.1_1\/","token":"58.1\/I\/3\/4\/58.1-346.1_1","metadata":false},{"id":84920,"structure_id":14178,"section_number":"58.1-346.2","catch_line":"Expired","url":"\/58.1-346.2\/","token":"58.1\/I\/3\/4\/58.1-346.2","metadata":false},{"id":55352,"structure_id":14178,"section_number":"58.1-346.2:1","catch_line":"Repealed","url":"\/58.1-346.2_1\/","token":"58.1\/I\/3\/4\/58.1-346.2_1","metadata":false},{"id":67265,"structure_id":14178,"section_number":"58.1-346.3","catch_line":"Expired","url":"\/58.1-346.3\/","token":"58.1\/I\/3\/4\/58.1-346.3","metadata":false},{"id":70052,"structure_id":14178,"section_number":"58.1-346.3:1","catch_line":"Repealed","url":"\/58.1-346.3_1\/","token":"58.1\/I\/3\/4\/58.1-346.3_1","metadata":false},{"id":60485,"structure_id":14178,"section_number":"58.1-346.4","catch_line":"Expired","url":"\/58.1-346.4\/","token":"58.1\/I\/3\/4\/58.1-346.4","metadata":false},{"id":64676,"structure_id":14178,"section_number":"58.1-346.4:1","catch_line":"Repealed","url":"\/58.1-346.4_1\/","token":"58.1\/I\/3\/4\/58.1-346.4_1","metadata":false},{"id":83478,"structure_id":14178,"section_number":"58.1-347","catch_line":"Penalty for failure to file income tax returns in time","url":"\/58.1-347\/","token":"58.1\/I\/3\/4\/58.1-347","metadata":false},{"id":56951,"structure_id":14178,"section_number":"58.1-348","catch_line":"Criminal prosecution for failure or refusal to file return of income or for making false statement therein; 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how kept","url":"\/58.1-354\/","token":"58.1\/I\/3\/4\/58.1-354","metadata":false},{"id":65733,"structure_id":14178,"section_number":"58.1-355","catch_line":"Income taxes of members of armed services on death","url":"\/58.1-355\/","token":"58.1\/I\/3\/4\/58.1-355","metadata":false},{"id":64802,"structure_id":14178,"section_number":"58.1-356","catch_line":"Reporting of payments by third-party settlement organizations","url":"\/58.1-356\/","token":"58.1\/I\/3\/4\/58.1-356","metadata":false}],"next_section":{"id":68211,"structure_id":14178,"section_number":"58.1-341","catch_line":"Returns of individuals","url":"\/58.1-341\/","token":"58.1\/I\/3\/4\/58.1-341","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/58.1-340\/","history_text":"

The record of this law\u2019s original creation isn\u2019t available online. It has been modified 1 time. Those modifications are cataloged by \u201cThe Acts of Assembly,\u201d a state publication, by year and chapter. Those modifications that can be read on the General Assembly\u2019s website will be linked accordingly. That modification is as follows: in 1984, chapter 675.<\/p>","references":false,"refers_to":false,"permalink":{"id":254261,"object_type":"law","relational_id":75406,"identifier":"58.1-340","token":"58.1\/I\/3\/4\/58.1-340","url":"\/58.1-340\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/58.1-340\/","token":"58.1\/I\/3\/4\/58.1-340","dublin_core":{"Title":"Accounting","Type":"Text","Format":"text\/html","Identifier":"\u00a7 58.1-340","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> An individual<\/span> taxpayer<\/span>’s taxable year under this chapter shall be the same as his taxable year for federal income tax purposes. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> If a taxpayer<\/span>’s taxable year is changed for federal income tax purposes, his taxable year for purposes of this chapter shall be similarly changed. If a taxable year of less than twelve months results from a change of taxable year, the Virginia taxable income shall be prorated under regulations of the Department<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> A taxpayer<\/span>’s method of accounting under this chapter shall be the same as his method of accounting for federal income tax purposes. In the absence of any method of accounting for federal income tax purposes, Virginia taxable income shall be computed under such method as in the opinion<\/span> of the Tax Commissioner<\/span> clearly reflects income. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

D.<\/span> If a taxpayer<\/span>’s method of accounting is changed for federal income tax purposes, his method of accounting for purposes of this chapter shall be similarly changed. If a taxpayer<\/span>’s method of accounting is changed, other than from an accrual to an installment method, any additional tax which results from adjustments determined to be necessary solely by reason of the change shall not be greater than if such adjustments were ratably allocated and included for the taxable year of the change and the preceding taxable years, not in excess of two, during which the taxpayer<\/span> used the method of accounting from which the change is made. If a taxpayer<\/span>’s method of accounting is changed from an accrual to an installment method, any additional tax for the year of such change of method and for any subsequent year which is attributable to the receipt of installment payments properly accrued in a prior year, shall be reduced by the portion of tax for any prior taxable year attributable to the accrual of such installment payments, in accordance with regulations of the Department<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

E.<\/span> In computing a taxpayer<\/span>’s Virginia taxable income for any taxable year under a method of accounting different from the method under which the taxpayer<\/span>’s Virginia taxable income was computed, there shall be taken into account those adjustments which are determined, under regulations prescribed by the Department<\/span>, to be necessary solely by reason of change in order<\/span> to prevent amounts from being duplicated or omitted. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

F.<\/span> Notwithstanding any of the other provisions of this section, any accounting adjustments made for federal income tax purposes for any taxable year shall be applied in computing the taxpayer<\/span>’s taxable income for such year. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nACCOUNTING (\u00a7 58.1-340)\n\nA. An individual taxpayer’s taxable year under this chapter shall be the\nsame as his taxable year for federal income tax purposes.\n\nB. If a taxpayer’s taxable year is changed for federal income tax\npurposes, his taxable year for purposes of this chapter shall be similarly\nchanged. If a taxable year of less than twelve months results from a change of\ntaxable year, the Virginia taxable income shall be prorated under regulations of\nthe Department.\n\nC. A taxpayer’s method of accounting under this chapter shall be the same\nas his method of accounting for federal income tax purposes. In the absence of\nany method of accounting for federal income tax purposes, Virginia taxable\nincome shall be computed under such method as in the opinion of the Tax\nCommissioner clearly reflects income.\n\nD. If a taxpayer’s method of accounting is changed for federal income tax\npurposes, his method of accounting for purposes of this chapter shall be\nsimilarly changed. If a taxpayer’s method of accounting is changed, other\nthan from an accrual to an installment method, any additional tax which results\nfrom adjustments determined to be necessary solely by reason of the change shall\nnot be greater than if such adjustments were ratably allocated and included for\nthe taxable year of the change and the preceding taxable years, not in excess of\ntwo, during which the taxpayer used the method of accounting from which the\nchange is made. If a taxpayer’s method of accounting is changed from an\naccrual to an installment method, any additional tax for the year of such change\nof method and for any subsequent year which is attributable to the receipt of\ninstallment payments properly accrued in a prior year, shall be reduced by the\nportion of tax for any prior taxable year attributable to the accrual of such\ninstallment payments, in accordance with regulations of the Department.\n\nE. In computing a taxpayer’s Virginia taxable income for any taxable year\nunder a method of accounting different from the method under which the\ntaxpayer’s Virginia taxable income was computed, there shall be taken into\naccount those adjustments which are determined, under regulations prescribed by\nthe Department, to be necessary solely by reason of change in order to prevent\namounts from being duplicated or omitted.\n\nF. Notwithstanding any of the other provisions of this section, any accounting\nadjustments made for federal income tax purposes for any taxable year shall be\napplied in computing the taxpayer’s taxable income for such year.\n\nHISTORY: Code 1950, \u00a7 58-151.061; 1971, Ex. Sess., c. 171; 1984, c. 675.","edition":{"id":1,"name":"2025","slug":"2025","date_created":"2026-06-21 22:39:22","date_modified":"2026-06-21 22:39:22","current":1,"order_by":1,"last_import":null}}