58.1-2527 - Failure to pay estimated tax.
§ 58.1-2527. Failure to pay estimated tax.
A. In case of any underpayment of estimated tax by an insurance company,there shall be added to the tax for the license year interest determined atthe rate set forth in § 58.1-15 upon the amount of the underpayment for theperiod of the underpayment.
B. For purposes of subsection A, the amount of the underpayment shall be theexcess of:
1. The amount of the installment which would be required to be paid if theestimated tax were equal to ninety percent of the tax ascertained for thelicense year, over
2. The amount, if any, of the installment paid on or before the last dateprescribed for payment.
C. The period of the underpayment shall run from the date the installment wasrequired to be paid to whichever of the following dates is the earlier:
1. The first day of the third month following the close of the taxable year.
2. With respect to any portion of the underpayment, the date on which suchportion is paid. For purposes of this paragraph, a payment of estimated taxon any installment date shall be considered a payment of any previousunderpayment only to the extent such payment exceeds the amount of theinstallment determined under subdivision B 1 of this section for suchinstallment date.
(Code 1950, § 58-502.6; 1968, c. 13; 1984, c. 675.)