                                 CODE OF VIRGINIA

FAILURE TO FILE RETURN; FRAUDULENT RETURN; PENALTIES; INTEREST; OVERPAYMENT OF
TAX (§ 58.1-1021.04)

A. When any distributor or remote retail seller fails to make any return or pay
the full amount of the tax required by this article, there shall be imposed a
specific penalty to be added to the tax in the amount of five percent if the
failure is for not more than one month, with an additional two percent for each
additional month, or fraction thereof, during which the failure continues, not
to exceed 20 percent in the aggregate. In no case, however, shall the penalty be
less than $10 and such minimum penalty shall apply whether or not any tax is due
for the period for which such return was required. If such failure is due to
providential or other good cause shown to the satisfaction of the Tax
Commissioner, such return with or without remittance may be accepted exclusive
of penalties. In the case of a false or fraudulent return where willful intent
exists to defraud the Commonwealth of any tax due under this article, or in the
case of a willful failure to file a return with the intent to defraud the
Commonwealth of any such tax, a specific penalty of 50 percent of the amount of
the proper tax shall be assessed. All penalties and interest imposed by this
article shall be payable by the distributor or remote retail seller and
collectible by the Department in the same manner as if they were a part of the
tax imposed.

B. It shall be prima facie evidence of intent to defraud the Commonwealth of any
tax due under this article when any distributor or remote retail seller reports
his purchases at 50 percent or less of the actual amount.

C. Interest at a rate determined in accordance with &#xA7; 58.1-15 shall accrue
on the tax until the same is paid.
			No deficiency, interest or penalty shall be assessed for any month after the
expiration of three years from the date set for the filing of the return for
such month, except in cases of fraud, or where no return has been filed for such
month.

D. If the Tax Commissioner determines that the amount paid the Commonwealth
under this article in regard to any monthly return was greater than the amount
of tax due the Commonwealth, the excess may be taken as a credit by the
distributor or remote retail seller against a subsequent month&#8217;s tax
imposed under this article. However, if such distributor or remote retail seller
requests a refund, such excess shall be refunded to the distributor or remote
retail seller within 45 days of the request. The refund shall include interest
at the rate provided in &#xA7; 58.1-15. Interest on such refunds shall accrue
from the due date of the return to which such excess is attributable to or the
date such excess was paid to the Department, whichever is later, and shall end
on a date determined by the Department preceding the date of the refund check by
not more than seven days.

HISTORY: 2004, Sp. Sess. I, c. 3; 2005, c. 71; 2022, cc. 738, 779.