                                 CODE OF VIRGINIA

PAYMENT OF TAXES BY ELECTRONIC FUNDS TRANSFER (§ 58.1-202.1)

A. In accordance with the limitations contained in subsection B, the Tax
Commissioner shall have the authority to require, consistent with the cash
management policies of the Department of Treasury and the Department of
Accounts, taxpayers subject to the taxes imposed pursuant to Articles 10 (&#xA7;
58.1-400 et seq.) and 16 (&#xA7; 58.1-460 et seq.) of Chapter 3 of this title
and Chapter 6 (&#xA7; 58.1-600 et seq.) of this title to remit taxes by
electronic funds transfer. Electronic funds transfer shall be made by automated
clearinghouse debit transactions; however, the Tax Commissioner may authorize
the use of any other means which ensures the availability of such funds to the
Commonwealth on or before the due date of the tax.

B. A taxpayer required to remit any of the taxes enumerated in subsection A of
this section shall be required to remit such taxes by electronic funds transfer
if the average monthly liability for such taxes exceeds $20,000. The $20,000
threshold will apply to each of the taxes on a separate basis. The Tax
Commissioner shall promulgate guidelines to determine eligibility criteria and
periods. In developing such guidelines, the Department shall seek the counsel of
interested groups including tax practitioners and representatives of the
business community.

C. All persons who act on a taxpayer&#8217;s behalf to remit the tax imposed
pursuant to Article 16 (&#xA7; 58.1-460 et seq.) of Chapter 3 of this title
shall be required to remit such withholding by electronic funds transfer if the
payment of individual income tax withholding is made on behalf of 100 or more
taxpayers. For the purposes of this subsection, electronic funds transfer shall
be made by automated clearinghouse credit payment transactions; however, the Tax
Commissioner may authorize the use of any other means that ensures the
availability of such funds to the Commonwealth on or before the due date of the
tax.

HISTORY: 1996, cc. 370, 449; 1997, c. 193; 2003, cc. 36, 39.