Virginia 500C - Underpayment of Estimated Tax by Corporations

500C - Underpayment of Estimated Tax by Corporations
2023 Form 500C - Underpayment of Virginia Estimated Tax by Corporations
Form 500C

Department of Taxation
P.O. Box 1500
Richmond, VA 23218-1500

2023 Underpayment of Virginia
Estimated Tax by Corporations

*VA500C123888*

FISCAL year filer or SHORT year filer: Enter beginning date ____________ 2023, and ending date ____________, ______, and check here
Name

FEIN

Mailing Address (Rural Route and Box Number)
City or Town, State, and ZIP Code

Part I – How to Compute the Underpayment
By completing Lines 1 through 8, a corporation can determine whether or not it paid the correct amount of estimated tax by the proper due dates. If the
minimum amounts were not timely paid, an additional charge may be imposed for the period of underpayment. A corporation that filed its return on a
basis other than a calendar year should enter the dates corresponding to its taxable year in the space provided below
1.	 Income tax reduced by allowable nonrefundable and refundable credits from Schedule 500CR .  .  .  .  .  .  .  .  .  .  .  .

.00

2.	 90% of Line 1.  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .
Due Dates of Installments

.00

(a)

Enter in Columns (a) through (d) the installment due dates [the 15th day
of the 4th, 6th, 9th, and 12th months] of your taxable year.  .  .  .  .  .  .  .  .  .  .

(b)

(c)

(d)

3.	 Enter 25% of Line 2 in Columns (a) through (d) .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .

.00

.00

.00

.00

4.	 Amounts paid or credited for each period .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .

.00

.00

.00

.00

5.	 Amount of 2022 overpayment credited against 2023 estimated tax

.00

.00

.00

.00

.00

.00

.00

6.	 Overpayment of previous installment .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .
7.	 Total (Add Lines 4, 5, and 6).  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .

.00

.00

.00

.00

8.	 Underpayment (or overpayment). Subtract Line 3 from Line 7 .  .  .

.00

.00

.00

.00

An overpayment of an installment in Line 8 in excess of all prior underpayments should be applied as a credit against the next installment.

Part II – Exceptions to the Additional Charge

If you meet any of the exceptions to the addition to the tax, complete Lines 9 through 12.

9.	

Total amount paid or credited from the beginning of the taxable
year through the installment dates that correspond to the 15th
day of the 4th, 6th, 9th, and 12th months of your taxable year. .  .  .

10.	 Exception 1 – Prior year’s tax.  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .
11.	 Exception 2 – Tax on prior year’s income based on the facts shown
on the prior year’s return, but using current year’s rates. .  .  .  .  .  .  .  .
12.	 Exception 3 – Tax on annualized income (Enclose computation).  .  .

(a)

(b)
.00

25% of tax

.00

25% of tax

.00
50% of tax

.00

50% of tax

.00
22.50% of tax

(c)

.00

.00
75% of tax

.00

75% of tax

.00
45% of tax

(d)

.00

.00
100% of tax

.00
67.50% of tax

.00

100% of tax

.00

.00
90% of tax

.00

There is no additional charge imposed on an underpayment shown in Line 8 for any installment date if by that date the corporation made the minimum
payment determined under any of the exceptions reflected in the instructions.

Part III – Computation of the Additional Charge
If an underpayment of estimated tax is shown on Line 8 for an installment and an exception is not applicable, the additional charge should be computed
by completing the portion(s) of this applicable to the installment(s).
(a)
(b)
(c)
(d)
	Enter the same installment dates used above in Part I.  .  .  .  .  .  .  .  .  .  .  . ►
13.	 Amount of underpayment from Line 8.  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .
14.	 Enter the date of payment or the 15th day of the 4th month after
the close of your taxable year, whichever is earlier. .  .  .  .  .  .  .  .  .  .  .  .
15.	 Number of days from the due date of installment to the date shown
on Line 14.  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .
16.	 Additional charge (Rate of interest established in IRC § 6621, plus
2%, times the amount on Line 13 for the number of days shown on
Line 15) (See instructions) .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .

.00

.00

.00

.00

.00

.00

.00

.00

17.	 Total additional charge. Add Columns (a) through (d), Line 16. Enter amount here and on Form 500, Line 20. .  .  .  .  .  .  .  .  .

.00

A payment of estimated tax on any installment date shall be considered a payment of any previous underpayment only to the extent such payment
exceeds the amount of the installment as computed in Line 3. If the corporation made more than 1 payment for a given installment, enclose a schedule
showing a separate computation for each payment.
Va. Dept. of Taxation  2601007-W  Rev. 08/23

Instructions for 2023 Form 500C
Underpayment of Virginia Estimated Tax by Corporations
Purpose of Form
Form 500C is used by corporations to determine whether they
paid enough estimated tax, whether they are subject to the
addition to the tax for underpayment of estimated tax, and, if
so, the amount of the addition. Estimated tax is a corporation’s
expected income tax liability minus its credits. A corporation
must make estimated tax payments if it reasonably expects
its tax liability to exceed $1,000 for the taxable year.

How to Use This Form
Complete Part I of Form 500C to find out if you have an
underpayment for any of the 4 payment periods. If you
have an underpayment on Line 8 (Column a, b, c, or d),
go to Part II, Exceptions to the Additional Charge. If you do
not meet any of the exceptions for a payment period, go to
Part III, Computation of the Additional Charge. If you are using
Form 500C either to figure the additional charge or to show
that you qualify for any exception, enclose your computation
to your Form 500, Corporation Income Tax Return.

Line 11 – Exception 2, Tax on prior year’s income using
current year’s rates. Generally, this exception applies if the
amount the corporation paid is equal to or greater than the
tax figured by using the current year’s rates but based on the
facts shown on the prior year’s return and the law that applies
to the prior year. Your prior year’s return does not have to
show a tax liability.
Line 12 – Exception 3, Tax on annualized income. This
exception applies if the estimated tax paid was equal to or
more than 90% of the amount the corporation would owe if
estimated tax was figured on annualized taxable income for
the months preceding an installment date.
A corporation may annualize its income as follows:
	

(a)	 For the 1st 3 months, if the installment was required
to be paid in the 4th month.

	

(b)	 For the 1st 3 months or for the first 5 months, if the
installment was required to be paid in the 6th month.

	

(c)	 For the 1st 6 months or for the first 8 months, if the
installment was required to be paid in the 9th month.

Amended Return

	

If an amended Form 500 is filed, there is no adjustment
allowed to the amount of addition to tax previously computed
and paid.

(d)	 For the 1st 9 months or for the first 11 months, if the
installment was required to be paid in the 12th month.

To annualize income, multiply taxable income for the period
by 12 and divide the result by the number of months in the
period (3, 5, 6, 8, 9, or 11, as the case may be).

For additional information, call (804) 367-8037, write to
the Virginia Department of Taxation, P.O. Box 1115,
Richmond, VA 23218-1115, or visit the Department’s website,
www.tax.virginia.gov.

Part I – How to Compute the Underpayment
Complete Lines 1 through 8 in Part I. On Line 4, be sure to
include any withholding payments made by a pass-through
entity on behalf of the corporation. If Line 8 shows an
underpayment, complete Part II to see if any of the exceptions
apply.

Part II – Exceptions to the Additional Charge
You will not have to pay an additional charge if all of your
estimated tax payments (Part II, Line 9) were made on time
and were equal to or more than any one of the amounts figured
as explained by the exceptions (Lines 10, 11, and 12) for the
same payment period (Column a, b, c, or d).The exceptions
to the additional charge are:
Line 10 – Exception 1, Prior Year’s Tax. Generally, this
exception applies if the corporation paid an amount that was
equal to or more than the tax shown on its previous (2022)
calendar or fiscal year return. However, the corporation must
have filed an income tax return showing a tax liability for
the preceding taxable year and that taxable year must have
consisted of 12 months.

Enclose your computation.

Part III – Computation of the Additional Charge
If no exception applies, complete Lines 13 through 17 to
determine the amount of the additional charge. The charge is
figured for the period of underpayment at the underpayment
rate determined under IRC § 6621, plus 2%.
For the purpose of computing the additional charge, the
underpayment rate established for the third month following
the close of the taxable year shall also be applied to the first 15
days of the fourth month following the close of the taxable year.
Line 17 – Total Columns 16 (a) through (d). If cents was
used in computing the addition to tax on Line 16, the total on
Line 17 should be rounded to the nearest whole dollar amount.
Enter the total here and on Form 500, Line 20.