                                 CODE OF VIRGINIA

PENALTY (§ 58.1-486.3)

A. 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 30 percent in the aggregate.
The entire tax or any unpaid balance of the tax, together with such penalty and
interest, shall 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.

B. In any month or fraction thereof for which the pass-through entity is subject
to the penalty imposed under &#xA7; 58.1-394.1 and the penalty under this
section, the greater of the two penalties shall apply.

C. The penalty under this section shall not apply to any tax attributable to
income that was included in a return filed pursuant to &#xA7; 58.1-395.

HISTORY: 2010, c. 120.