Tax Type
Declaration of Estimated Income Tax by Individuals
Description
Relief of penalty on underestimated tax
Topic
Returns/Payments/Records
Taxpayers' Remedies
Date Issued
12-30-1982
December 30, 1982
Re: 58-1118 Application/Estimated Tax
1981 Taxable Year
Dear ****************:
This will reply to your letter of October 28, 1982, in which you apply for relief of penalty on underestimated tax on behalf of your clients, *****************.
FACTS
The ********** made estimated tax payments in 1980 with total tax paid for the year of $**** and total tax due for the year of $*****. This resulted in a refund due to the taxpayers of $***** of the $ taxpayers requested $ *** be applied to their 1981 estimated tax. Instead the entire amount was refunded, and penalty was assessed for underpayment of estimated tax in 1981. Taxpayers appeal the assessment for the penalty.
DETERMINATION
Estimated tax must be paid by persons who do not pay under the withholding sections, or who pay under the withholding sections and have other taxable income over $******. (§58-151.21, Code of Virginia). Any failure to pay estimated tax as required is subject to penalty under § 58-151.26. If the $ **** had been applied to the******* 1981 tax liability, their estimated tax liability for 1981 would have been satisfied and the penalty would not have been applied. Therefore, the penalty will be abated..
Sincerely,
W. H. Forst
State Tax Commissioner
Rulings of the Tax Commissioner