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Extension penalty

• Onvio Tax calculates the extension penalty if you do not pay the entire balance due with the extension.
• The penalty is 2% a month for a maximum of 6 months; Therefore, the maximum penalty is 12% of the tax due on the original due date.
• You can assess the extension penalty at the same time as Failure to pay or Failure to file penalties.
• Onvio Tax displays the penalty in the FTP section of the Late Interest and Penalty Worksheet.

Failure to pay (FTP) and Failure to file (FTF) penalties

• The state will not assess failure to pay and failure to file penalties for the same time period. If FTF and FTP are both applicable, FTF takes precedence and will calculate instead of FTP.
• The FTF and FTP combined cannot exceed 30% of the original tax due. Onvio Tax calculates the FTF penalty until the date the return is filed or until it hits 30% of the original tax due (at 5 months late), whichever occurs first.
• Failure to pay and failure to file penalties appear at the bottom of the VA 770. The TOT amount includes these penalties.

Virginia overview (1041)