Virginia Sales Tax Guide
Chapter 7: How to manage late Virginia sales tax return filing
Hopefully you don't need to worry about this chapter because you're getting your Virginia sales tax filing and remittance done on time and submitted without incident. However, in the real world, mistakes happen. In this chapter, we'll talk about how to avoid costly penalties and fines if you've missed your assigned filing deadline.What do I do if I missed my Virginia sales tax filing deadline?
The first thing to do is get your return filed. This is definitely one of those situations where things are "better late than never." As long as you don't submit your tax filing paperwork, or hold on to the tax dollars you've collected, you may be accruing fines and interest. It's always best to get your filing done and deal with any penalties and interest payments later.What penalties and interest payments are imposed by the Virginia Department of Taxation?
Late Filing Penalty
Should you file your Virginia sales tax return more than six months after the due date and you owe tax, your return may be subject to a late filing penalty at a rate of 6% per month, or portion thereof, from the due date of the return until the return is filed. The minimum penalty assessed is $10 while the maximum penalty is capped at 30%*.
Note: Due to the six month delay before a late filing penalty is assessed in Virginia, the maximum penalty of 30% will be immediately applied.
Late Payment Penalty
If you do file your Virginia sales tax return within the six month window, but fail to pay your outstanding tax liability, you will be assessed the 6% per month penalty with the cap again set at 30%.
The Virginia Department of Taxation charges interest on any outstanding tax liability per the federal underpayment rate established under Internal Revenue Code Section 6621, plus 2%.If I acquire a business, am I responsible for any outstanding sales tax debts, penalties, and interest?
Yes! If you are acquiring a business, it is strongly recommended that you contact the Virginia Department of Taxation and inquire about the current state of the potential acquisition. Once you've purchased the business, you will be held responsible for any and all outstanding Virginia sales and use tax liability.