                                 CODE OF VIRGINIA

TIME OF PAYMENT OF CORPORATION INCOME TAXES; PENALTY AND INTEREST FOR NONPAYMENT
(§ 58.1-455)

A. Every corporation liable for income tax shall pay the same to the Department
at the time fixed by law for filing the return. The full amount of the tax
payable as shown on the face of the return shall be so paid. A corporation may
file its return and pay its tax in full in the closing days of its taxable year
provided it is able to prepare a complete return.
			If any payment is not made in full when due, there shall be added to the
entire tax or to any unpaid balance of the tax, a penalty of six percent of the
amount thereof, if the failure is for not more than one month, with an
additional six percent for each additional month or fraction thereof during
which such failure to pay continues, not exceeding thirty percent in the
aggregate. The entire tax or any unpaid balance of the tax, together with such
penalty, will immediately become collectible. Interest upon such tax or any
unpaid balance of the tax, and on the accrued penalty, shall be added at a rate
determined in accordance with &#xA7; 58.1-15, from the date the tax or any
unpaid balance of the tax was originally due until paid. In the case of an
additional tax assessed by the Department, if the return was made in good faith
and the understatement of the amount in the return was not due to any fault of
the taxpayer, there shall be no penalty on the additional tax because of such
understatement, but interest shall be added to the amount of the deficiency at a
rate determined in accordance with &#xA7; 58.1-15, from the time the return was
required by law to be filed until paid.
			The penalty under this subsection shall not be applicable to any month or
fraction thereof for which the corporation is subject to the penalty imposed
under &#xA7; 58.1-450. In no event shall the total amount of penalty assessed
under this subsection and under &#xA7; 58.1-450 exceed thirty percent in the
aggregate.

B. If the understatement is false or fraudulent with intent to evade the tax, a
penalty of 100 percent shall be added together with interest on the tax at a
rate determined in accordance with &#xA7; 58.1-15, from the time the return was
required by law to be filed until paid.
			Nothing contained in this section shall prevent the taxpayer from applying to
the circuit court of the county or the city wherein the corporation is located
for a correction of the assessment made by the Department, with right of appeal
in the manner provided by law.

HISTORY: Code 1950, § 58-151.093; 1971, Ex. Sess., c. 171; 1977, c. 396; 1984,
c. 675; 1989, cc. 629, 642; 1991, cc. 316, 331.