PTET penalty waiver process remains the same

For tax year 2023 returns, the Virginia Department of Taxation (TAX) says taxpayers and practitioners should still use the Offer in Compromise (OIC) process to request relief. Remember, TAX can only consider PTET penalty waiver requests after a taxpayer has received a penalty assessment.  

The OIC team is again offering an expedited pass-through entity tax (PTET) waiver request process to benefit tax preparers who may have multiple clients seeking relief. Tax preparers should submit a letter listing their client businesses requesting a PTET waiver in lieu of multiple OIC B-2 forms. NOTE: Any interest owed on unpaid taxes remain the responsibility of the taxpayer and cannot be reviewed or considered within this streamlined process. 

Please include the following information for each business: 

• The business name, FEIN, and the tax year for which the waiver is requested, 
• A brief explanation of the circumstances that led to the late filing or payment (ex. software issues/availability, lack of clear guidance, mailing issues, etc.), and 
• A power of attorney form (PAR 101) if TAX does not already have one on file. 

Please fax your letter to the attention of Sherman Chung at (804) 786-2645 or mail to: 
               Virginia Tax 
               P.O. Box 546 
               Richmond, VA 23218-0546 
               Attn:  Sherman Chung