Bulletin Number
VTB 87-8
Tax Type
Declaration of Estimated Income Tax by Individuals
Employer Income Tax Withholding
Individual Income Tax
Description
1987 Legislative Change: Increase in Estimated/Withholding Requirement
Topic
Returns and Payments
Withholding of Tax
Date Issued
06-01-1987
The 1987 General Assembly also enacted legislation to increase from 80% to 90% the amount of individual income tax which is required to be paid via estimated payments and/or withholding.
This change is effective for taxable years beginning on and after January 1, 1987. However, the Department of Taxation will not impose the underpayment penalty for taxable year 1987 in cases where the taxpayer pays at least 80% of the tax liability.
This decision was made in part in recognition of the fact that the very short period of time between the enactment of the legislation and the May 1 due date for estimated declarations and payments made it very difficult to ensure that all taxpayers were aware of the changes to the individual income tax.
Tax Bulletins