{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/58.1-440.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/58.1-440.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/58.1-440.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/58.1-440.html"}],"law_id":60123,"edition_id":1,"section_id":60123,"structure_id":13546,"section_number":"58.1-440","catch_line":"Accounting","history":"Code 1950, \u00a7 58-151.061; 1971, Ex. Sess., c. 171; 1984, c. 675.","full_text":"A\n\nA corporate 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 of Taxation, 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":219990,"text":"A corporate 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":219991,"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":219992,"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":219993,"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":219994,"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 of Taxation, 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":219995,"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":13546,"edition_id":1,"name":"Accounting, Returns, Procedures for Corporations","identifier":"14","label":"article","depth":4,"order_by":1,"parent_id":13152,"metadata":{},"date_created":"2026-06-26 03:45:11","date_modified":"2026-06-26 03:45:11","permalink":{"id":253719,"object_type":"structure","relational_id":13546,"identifier":"14","token":"58.1\/I\/3\/14","url":"\/58.1\/I\/3\/14\/","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":60123,"structure_id":13546,"section_number":"58.1-440","catch_line":"Accounting","url":"\/58.1-440\/","token":"58.1\/I\/3\/14\/58.1-440","metadata":false},{"id":54651,"structure_id":13546,"section_number":"58.1-440.1","catch_line":"Accounting-deferred taxes","url":"\/58.1-440.1\/","token":"58.1\/I\/3\/14\/58.1-440.1","metadata":false},{"id":72207,"structure_id":13546,"section_number":"58.1-441","catch_line":"Reports by corporations","url":"\/58.1-441\/","token":"58.1\/I\/3\/14\/58.1-441","metadata":false},{"id":69106,"structure_id":13546,"section_number":"58.1-442","catch_line":"Separate, combined, or consolidated returns of affiliated corporations","url":"\/58.1-442\/","token":"58.1\/I\/3\/14\/58.1-442","metadata":false},{"id":85145,"structure_id":13546,"section_number":"58.1-443","catch_line":"Prohibition of worldwide consolidation or combination","url":"\/58.1-443\/","token":"58.1\/I\/3\/14\/58.1-443","metadata":false},{"id":54510,"structure_id":13546,"section_number":"58.1-444","catch_line":"Several liability of affiliated corporations","url":"\/58.1-444\/","token":"58.1\/I\/3\/14\/58.1-444","metadata":false},{"id":63978,"structure_id":13546,"section_number":"58.1-445","catch_line":"Consolidation of accounts","url":"\/58.1-445\/","token":"58.1\/I\/3\/14\/58.1-445","metadata":false},{"id":65477,"structure_id":13546,"section_number":"58.1-445.1","catch_line":"Repealed","url":"\/58.1-445.1\/","token":"58.1\/I\/3\/14\/58.1-445.1","metadata":false},{"id":73547,"structure_id":13546,"section_number":"58.1-446","catch_line":"Price manipulation; intercorporate transactions; parent corporations and subsidiaries","url":"\/58.1-446\/","token":"58.1\/I\/3\/14\/58.1-446","metadata":false},{"id":59908,"structure_id":13546,"section_number":"58.1-447","catch_line":"Execution of returns of corporations","url":"\/58.1-447\/","token":"58.1\/I\/3\/14\/58.1-447","metadata":false},{"id":70673,"structure_id":13546,"section_number":"58.1-448","catch_line":"Forms to be furnished","url":"\/58.1-448\/","token":"58.1\/I\/3\/14\/58.1-448","metadata":false},{"id":55649,"structure_id":13546,"section_number":"58.1-449","catch_line":"Supplemental reports","url":"\/58.1-449\/","token":"58.1\/I\/3\/14\/58.1-449","metadata":false},{"id":54972,"structure_id":13546,"section_number":"58.1-450","catch_line":"Failure of corporation to make report or return","url":"\/58.1-450\/","token":"58.1\/I\/3\/14\/58.1-450","metadata":false},{"id":56719,"structure_id":13546,"section_number":"58.1-451","catch_line":"Fraudulent returns, etc., of corporations; penalty","url":"\/58.1-451\/","token":"58.1\/I\/3\/14\/58.1-451","metadata":false},{"id":81878,"structure_id":13546,"section_number":"58.1-452","catch_line":"Fraudulent returns; criminal liability; penalty","url":"\/58.1-452\/","token":"58.1\/I\/3\/14\/58.1-452","metadata":false},{"id":57652,"structure_id":13546,"section_number":"58.1-453","catch_line":"Extension of time for filing returns by corporations","url":"\/58.1-453\/","token":"58.1\/I\/3\/14\/58.1-453","metadata":false},{"id":59422,"structure_id":13546,"section_number":"58.1-454","catch_line":"Department may estimate corporation's tax when no return filed","url":"\/58.1-454\/","token":"58.1\/I\/3\/14\/58.1-454","metadata":false},{"id":83702,"structure_id":13546,"section_number":"58.1-455","catch_line":"Time of payment of corporation income taxes; penalty and interest for nonpayment","url":"\/58.1-455\/","token":"58.1\/I\/3\/14\/58.1-455","metadata":false}],"next_section":{"id":54651,"structure_id":13546,"section_number":"58.1-440.1","catch_line":"Accounting-deferred taxes","url":"\/58.1-440.1\/","token":"58.1\/I\/3\/14\/58.1-440.1","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/58.1-440\/","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":[{"id":77310,"section_number":"58.1-400.2","catch_line":"Taxation of electric suppliers, pipeline distribution companies, gas utilities, and gas suppliers","order_by":null,"url":"\/58.1-400.2\/"}],"refers_to":false,"permalink":{"id":253721,"object_type":"law","relational_id":60123,"identifier":"58.1-440","token":"58.1\/I\/3\/14\/58.1-440","url":"\/58.1-440\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/58.1-440\/","token":"58.1\/I\/3\/14\/58.1-440","dublin_core":{"Title":"Accounting","Type":"Text","Format":"text\/html","Identifier":"\u00a7 58.1-440","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> A corporate 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> of Taxation, 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 58.1-440)\n\nA. A corporate 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 of Taxation, to be necessary solely by reason of change in order\nto prevent amounts 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}}