Tax Type
Employer Income Tax Withholding
Description
Bonus and commissions; Failure to withhold tax
Topic
Basis of Tax
Date Issued
03-10-1994
March 10, 1994
Re: §58.1-1821 Application
Dear*****************
This will reply to your letter of September 15, 1993 in which you make application for abatement of penalties assessed to *************(the "Taxpayer") for 1991.
FACTS
The Taxpayer was audited for payroll tax withholding for the 1991 taxable year, and a penalty was assessed for the failure to withhold Virginia income taxes from wages paid to employees.
RULING
The Taxpayer failed to withhold Virginia income taxes on commissions paid to sales employees during 1991, and on a *********bonus paid to the Taxpayer's president on December 31, 1991.
As provided in Va. Code §58.1-475, a penalty shall be imposed where any employer fails to properly withhold Virginia payroll taxes. The Taxpayer admits that such withholding was required.
Given the clear language of the Code of Virginia, I find no basis for abating the penalty. Accordingly, the assessment is correct and is now due and payable. You will shortly receive an updated bill with interest accrued to date which must be paid in full to avoid additional interest and collection actions.
Sincerely,
Danny M. Payne
Acting Tax Commissioner
OTP/7382M
Rulings of the Tax Commissioner