March 19, 2020
Secretary Aubrey L. Layne, Jr., CPA
Office of the Secretary of Finance
Patrick Henry Building
1111 East Broad Street
Richmond, VA 23219
RE: Relief for late payment of taxes amid Coronavirus Pandemic
Dear Secretary Layne:
The Virginia Society of Certified Public Accountants (VSCPA) Tax Advisory Committee would like to request the Virginia Department of Taxation (TAX) consider providing relief to Virginia taxpayers in light of the uncertainty and challenges caused by the coronavirus (COVID-19) pandemic. In Notice 2020-17 issued today, the IRS announced an extension of the payment deadline until July 15, 2020, for federal income taxes due on April 15, 2020. This extension applies to both the balances due on 2019 returns and estimated income tax payments due.
We recognize that minimizing the impact to the state budget is critically important to allowing the Commonwealth to continue to have the financial means to provide much needed services during this unprecedented crisis. Specifically, we understand that it may be difficult to extend any relief provided beyond the Commonwealth’s current fiscal year. Therefore, the Committee is recommending that penalties and interest for tax payments due on May 1, 2020, be waived for payments received through June 15, 2020. This will leave the current payment and filing deadline of May 1 in place, but allow for relief to those taxpayers who may need it.
Lastly, it is our understanding that Congress, Treasury and the Internal Revenue Service (IRS) are considering several additional relief measures. Virginia should continue to monitor any federal actions taken and assess whether similar relief measures would be appropriate in the Commonwealth.
The Virginia Society of Certified Public Accountants (VSCPA) is the leading professional association in the Commonwealth dedicated to empowering CPAs to thrive. Founded in 1909, the VSCPA has more than 13,000 members who work in public accounting, industry, government and education. Please feel free to contact me or VSCPA Vice President, Advocacy Emily Walker, CAE, at (804) 612-9428 or [email protected] if we can be of further assistance.
Vivian J. Paige, CPA
2019–2020 Tax Advisory Committee Chair
Virginia Society of CPAs
CC: Mr. Craig M. Burns, Sen. Janet Howell, Del. Luke Torian, Del. Vivian Watts