58.1-2528 - Exception to § 58.1-2527.
§ 58.1-2528. Exception to § 58.1-2527.
A. Notwithstanding the provisions of § 58.1-2527, the addition to the taxwith respect to any underpayment of any installment shall not be imposed ifthe total amount of all payments of estimated tax made on or before the lastdate prescribed for the payment of such installment equals or exceeds theamount which would have been required to be paid on or before such date ifthe estimated tax were whichever of the following is the lesser:
1. The tax as ascertained for the preceding license year, and the tax forsuch preceding license year was computed on the basis of a taxable year oftwelve months.
2. An amount equal to the tax computed at the rate applicable to the licenseyear but otherwise on the basis of the facts shown on the report of theinsurance company for, and the law applicable to, the preceding license year.
3. An amount equal to ninety percent of the tax measured by direct grosspremium income received or derived in the taxable year computed by placing onan annualized basis the taxable direct gross premium income:
a. For the first three months of the taxable year, in the case of theinstallment required to be paid in the fourth month,
b. For the first three months or for the first five months of the taxableyear, in the case of the installment required to be paid in the sixth month,
c. For the first six months or for the first eight months of the taxableyear, in the case of the installment required to be paid in the ninth month,and
d. For the first nine months or for the first eleven months of the taxableyear, in the case of the installment required to be paid in the twelfth monthof the taxable year.
B. For purposes of subdivision 3 of subsection A, the taxable direct grosspremium income shall be placed on an annualized basis by multiplying bytwelve the taxable direct gross premium income referred to in subdivision 3,and dividing the resulting amount by the number of months in the taxable year(three, five, six, eight, nine, or eleven, as the case may be) referred to insubdivision 3.
C. The application of this section to taxable years of less than twelvemonths shall be in accordance with regulations prescribed by the Commission.
(Code 1950, § 58-502.6; 1968, c. 13; 1984, c. 675.)