TAXATION
ROLLING TAX conformity IS BETTER FOR VIRGINIA It’s time to alleviate the headache of fixed-date conformity for good.
If tax conformity
has ever gotten you down,
you’re not alone.
Because the Commonwealth conforms to the U.S. Internal Revenue Code’s definitions of income each year, Virginia taxpayers and tax preparers anxiously await as the Virginia General Assembly passes emergency legislation to address the issue. If legislators take their time, we wait. And if they are late, thousands of taxpayers (and their tax preparers) must file amended returns. The delay creates a lot of uncertainty
Jill Edmonds
20
DISCLOSURES
•
WINTER 2022
for taxpayers, as it hinders their ability to plan during the year and leaves them unclear about their actual Virginia tax liability until after the tax year has ended. Taxpayers required to make quarterly estimated tax payments are particularly affected by this model because their payments are due throughout the tax year; retroactive legislation could cause them to incur penalties and interest through no fault of their own. “Awaiting tax conformity each year is the bane of my existence,” said Andrew Martin, CPA, managing
