Bulletin Number
VTB 81-1
Tax Type
Bank Franchise Tax
Description
Bank Franchise Tax Return - Form 64 Schedule A
Topic
Returns and Payments
Date Issued
02-19-1981
DATE: February 19, 1981
SUBJECT: Virginia Bank Franchise Tax Return - Form 64
Schedule A - Valuation Reserve for Marketable Securities
Schedule A of Form 64 included in the "Virginia Franchise Tax 1981 Forms and Instructions" previously distributed is incorrect.
58-485.07 of the Code of Virginia allows a deduction from capital for a reserve for valuation of marketable securities if such reserve is included in capital, surplus or undivided profits on the bank's official report of condition. The deduction is applicable only to a reserve actually carried on the books of the bank and is limited to the excess of the book value over the market value of securities at December 31, 1980. Also, there is no requirement for an addition to capital, surplus or undivided profits for the excess of market value over the book value (unrealized increment) of securities.
In completing Form 64, please disregard Schedule A to the extent that it conflicts with the above. If erroneous returns have already been filed for 1981 because of this error, corrections will be made by the department and banks will be notified of any changes.
Tax Bulletins