                                 CODE OF VIRGINIA

FAILURE TO PAY ESTIMATED TAX (§ 58.1-2527)

A. In case of any underpayment of estimated tax by an insurance company, there
shall be added to the tax for the license year interest determined at the rate
set forth in &#xA7; 58.1-15 upon the amount of the underpayment for the period
of the underpayment.

B. For purposes of subsection A, the amount of the underpayment shall be the
excess of:

   1. The amount of the installment which would be required to be paid if the
   estimated tax were equal to 90 percent of the tax shown on the report for the
   license year, over

   2. The amount, if any, of the installment paid on or before the last date
   prescribed for payment.

C. The period of the underpayment shall run from the date the installment was
required to be paid to whichever of the following dates is the earlier:

   1. The first day of the third month following the close of the taxable year.

   2. With respect to any portion of the underpayment, the date on which such
   portion is paid. For purposes of this paragraph, a payment of estimated tax on
   any installment date shall be considered a payment of any previous
   underpayment only to the extent such payment exceeds the amount of the
   installment determined under subdivision B 1 for such installment date.

HISTORY: Code 1950, § 58-502.6; 1968, c. 13; 1984, c. 675; 2013, cc. 29, 163.