Automatic Paperless Extension Bill Signed By Governor

March 24, 2005 — On March 20, Gov. Mark Warner signed HB 2325, which allows taxpayers and preparers to request a six-month extension after the original due date for filing income tax returns. The penalty for failing to pay at least 90 percent of the tax by the extension date is increased from one-half percent to two percent.

In a letter to legislators, the Society emphasized how HB 2325 will allow for a more streamlined process in filing extensions that will ease burdens not only for taxpayers and preparers, but also for the Virginia Department of Taxation. Many other states already have a similar system in place that allows for this more efficient method of tax filing. The VSCPA collaborated with the Department of Taxation on this measure.

The bill is effective for taxable years on and after January 1, 2005.

If you have questions or concerns about this or any other legislative issues, contact VSCPA Government Affairs Director Erin Collins at (800) 733-8272. The VSCPA will keep you apprised of any pertinent developments from the Virginia General Assembly and the governor's desk.