Virginia lawmakers will need to tackle interest when it comes to delayed tax payments

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RICHMOND, Va. (WWBT) — Virginia has delayed state tax payments until June 1st, but that’s not going to stop the interest from piling up if you owe money.

The federal deadline to file tax returns was extended to July 15th to help people who may be impacted by the coronavirus outbreak. But in Virginia, the state hasn’t changed its filing deadline. Virginia taxes should still be filed by May 1.

If you owe money, that’s been delayed until June 1, but currently, it’s best to pay by May 1 because that is when the interest starts accruing.

Gary Thomson, chairman of the Virginia Society of Certified Public Accountants says under Virginia law, interest has to be charged. That’s not something that the governor or the tax commissioner or secretary of finance can waive. Only the legislature can make this change.

“We’re really hopeful and we’re getting a lot of good feedback from legislators that when they go back into veto session soon and deal with the finality of the budget that hopefully they can pass something that will waive the interest requirements as well.”

The governor has waived the penalties that could be added to payments. But we have to wait and see what lawmakers decide to do with the interest that can be tacked on even with the automatic filing extension.

It’s also messy because most people like to file state tax returns with a copy of their federal filing, so many tax preparation companies are encouraging people to just file all of their taxes by May 1.