Tax Type
Income Tax
Description
Fixed Dated Conformity Repealed
Topic
Basis of Tax
Date Issued
02-15-1994
Virginia Department of Taxation
94-2
FIXED DATE CONFORMITY REPEALED
Under emergency legislation passed by the 1994 General Assembly and signed by Governor Allen, the 1993 legislation which deconformed Virginia 's income tax law to federal law has been repealed.
Senate Bill 185, introduced by Senator Walter A. Stosch, CPA, repeals the 1993 legislation which temporarily froze Virginia's conformity to federal income tax law as it existed on December 31, 1992. In effect, it would reconform Virginia tax law to federal tax law as if deconformity had never occurred.
Since 1972, Virginia has conformed to federal income tax law. Whenever federal income tax law was changed, the changes automatically affected Virginia income taxes, unless otherwise exempted. The 1993 legislation deconformed Virginia's tax law for one year - 1993. Because of changes in federal law contained in the Omnibus Budget Reconciliation Act (OBRA) of 1993, effective for taxable year 1993, some filers (individuals, fiduciaries, and corporations) would have been required to recompute their federal adjusted gross income (FAGI) or federal taxable income (FTI), in accordance with 1992 federal law, rather than I 993 federal law.
Special Instructions for Taxpayers
Most Virginia taxpayers will not be affected by this change because only a limited number of taxpayers would have been required to make the special fixed date conformity modifications.
Taxpayers Who Have Not Yet Filed
Taxpayers who have not yet filed their returns should disregard the instructions for the Special Fixed Date Conformity Additions and Special Fixed Date Conformity Subtractions. No entries for these items should be made on the following lines:
Individuals and Fiduciaries:
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- Form 760 - Lines 32 and 37
Form 760PY - Lines 33 and 38
Form 763 - Lines 30 and 35
Form 770 - Schedule III, Lines 1 and 6
- Form 760 - Lines 32 and 37
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The Virginia Schedule A included with your income tax instructions should NOT be used. Instead you may file a copy of your federal Schedule A as you have always done.
Corporations:
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- Form 500 - Lines 2(b) and 4(c)
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-
Taxpayers Who Have Already Filed
Taxpayers who have already filed and reported Special Fixed Date Conformity Modifications do NOT need to file amended returns. The Department of Taxation will adjust any return already filed to eliminate the unnecessary modifications. Taxpayers will be notified of the change in their tax liability, if any.
Forgiveness Of Underpayment Penalty
The Department of Taxation will waive the addition to the tax charge (760C, 760F, or 500C) for any taxpayer who can demonstrate that the elimination of the Special Filed Date Conformity Subtractions modification created additional tax sufficient to cause the taxpayer to be subject to the addition to the tax charge . Taxpayers must write FIXED DATE CONFORMITY across the top of Form 760C, 760F, or 500C.
Tax Bulletin 93-9
This Tax Bulletin superseded Tax Bulletin 93-9, dated December 1, 1993 and any other oral directives or written documents in conflict herewith.
Additional Information
For additional information, contact the Taxpayer Assistance Section, Office of Taxpayer Services, Virginia Department of Taxation, P. O. Box 1115, Richmond, Virginia 23208-1115 or call (804) 367-8031 (Individuals) or (804) 367-8036 (Corporations).
Rulings of the Tax Commissioner