Is Tax Penalty Relief Coming for New Small Businesses?

Date: February 28, 2017

 

For new small businesses that get into a hole on their state taxes, a new bill could help them get back on track.

Senate Bill 793, introduced by Sens. Glen Sturtevant and Amanda Chase, would waive the tax penalties charged to businesses that fall behind on state tax payments during their first two years in business. Eligible businesses, as defined by the bill, are independently owned and operated businesses with 10 or fewer employees. They must have been organized pursuant to Virginia law or maintain a principal place of business in Virginia. As long as the small business has signed an installment agreement to complete the tax payment, all penalties related to taxes levied by the Virginia Department of Taxation would be waived.

SB 793 was unanimously passed by the Senate in January, then passed with an amendment—that the tax penalty waiver would expire on June 30, 2022—by a 94-5 House vote last month to send it back to the Senate for another vote.

 

Related Content: Small Business News | Economy | Virginia

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