Virginia Form 500c - Underpayment Of Virginia Estimated Tax By Corporations

*VA500C211000*

InSTRuCTIOnS

to or more than the tax shown on its 2010 return for the

PuRPOSe OF FORm

previous calendar or fiscal year. However, the corporation

form 500C is used by corporations to determine whether they

must have filed an income tax return showing a tax liability

paid enough estimated tax, whether they are subject to the

for the preceding tax year and that year must have consisted

addition to the tax for underpayment of estimated tax, and, if

of 12 months.

so, the amount of the addition. Estimated tax is a corporation’s

expected income tax liability minus its credits. A corporation

Line 11—Exception 2, Tax on prior year’s income using current

must make estimated tax payments if it can reasonably expect

year’s rates—generally, this exception applies if the amount

its tax liability to exceed $1,000.00 for such taxable year.

the corporation paid is equal to or more than the tax figured by

using the current year’s rates but based on the facts shown on

HOw TO uSe THIS FORm

the prior year’s return and the law that applies to the prior year.

Complete part I of form 500C to find out if you have an

Your prior year’s return does not have to show a tax liability.

underpayment for any of the four payment periods. If you

Line 12—Exception 3, Tax on annualized income—This

have an underpayment on Line 8 (Column a, b, c or d), go

exception applies if the estimated tax paid was equal to or

to part II, Exceptions to the Additional Charge. If you cannot

more than 90% of the amount the corporation would owe if

meet any of the exceptions for a payment period, go to part

estimated tax was figured on annualized taxable income for

III, Computation of the Additional Charge. If you are using

the months preceding an installment date.

form 500C either to figure the additional charge or to show

A corporation may annualize its income as follows:

that you qualify for any exception, attach form 500C to your

(a) for the first 3 months if the installment was required

Corporate Tax Return.

to be paid in the 4th month.

Amended ReTuRn

(b) for the first 3 months or for the first 5 months if the

If an amended corporation return, form 500, is filed, there

installment was required to be paid in the 6th month.

is no adjustment allowed to the amount of addition to tax

previously computed and paid.

installment was required to be paid in the 9th month.

(d) for the first 9 months or for the first 11 months if the

For additional information, call (804) 367-8037 or write

installment was required to be paid in the 12th month.

the Department of Taxation, P.O. Box 1115, Richmond, VA

23218-1115. You can obtain most virginia income tax

To annualize, multiply taxable income for the period by 12

forms at

and divide the result by the number of months in the period

(3, 5, 6, 8, 9 or 11, as the case may be).

PART I. HOw TO FIguRe yOuR undeRPAymenT

Please attach your computation.

Complete Lines 1 through 8 in part I. The instructions for

PART III. COmPuTATIOn OF THe AddITIOnAL CHARge

most of these lines are on the form itself. If Line 8 shows an

If no exception applies, complete Lines 13 through 17 to

underpayment, complete part II to see if any of the exceptions

determine the amount of the additional charge. The charge is

apply.

figured for the period of underpayment at the underpayment

PART II. exCePTIOnS TO THe AddITIOnAL CHARge

rate determined under Section 6621 of the Internal Revenue

Code, plus 2%.

You will not have to pay an additional charge if all of your tax

payments (part II, Line 9) were made on time and are equal

for the purpose of computing the additional charge, the

to or more than any one of the amounts figured as explained

underpayment rate established for the third month following

by the exceptions (Lines 10, 11 and 12) for the same payment

the close of the taxable year shall also be applied to the first 15

period (column a, b, c or d).

days of the fourth month following the close of the taxable year.

The exceptions to the additional charge are:

Line 10—Exception 1, prior Year’s Tax—generally, this

exception applies if the corporation paid an amount equal

Virginia Form 500c - Underpayment Of Virginia Estimated Tax By Corporations - 2011 Page 2

Related Articles

Related forms

Related Categories