2023 Virginia Tax Law Changes
Tax law can be complex and evolving. At Marek CPA & Associates, we aim to keep you and your business operational and in compliance with federal and state laws and regulations. Virginia recently enacted changes to state tax law including revisions to payment plans, rolling conformity, and firearm safety tax credits. Read on to learn more about these legislative updates.
Tax Owed Payment Plans: Virginia residents may be eligible to set up a payment plan if you owe less than $25,000 in combined tax, penalties, and interest, and do not have any of the following collection actions on your account:
Padlock, revocation, criminal warrant, or bond
Tax lien issued to an employer or bank, bankruptcy, or assignment to an outside collection agency or a Virginia Tax field agent
Individual taxpayers may set up a payment plan for up to 5 years. If you are not eligible for a payment plan, contact our office today and we will contact the Virginia Department of Taxation on your behalf to advocate for payment plan assistance.
Rolling Conformity: Conformity refers to how closely Virginia follows definitions and other provisions of the federal tax code, most importantly, the definition of adjusted gross income. The 2023 General Assembly passed legislation that conforms Virginia’s tax law to the federal tax code on a rolling basis, with certain exceptions. The legislation also sets guidelines for future federal law changes that Virginia law would not conform to.
Firearms Safety Device Credit: Beginning this year, if you purchase certain types of firearms safety devices, you may be eligible for an income tax credit of up to $300 ($600 if you file jointly with your spouse and you each submit a separate application). The Virginia Department of Taxation has limited credits to $5 million per year, and will allocate them on a first come, first served basis. They will begin accepting applications for the credit later this year. In the meantime, if you purchase one of these devices this year, be sure to save your receipt.
Check back often for legislative tax updates and guidance. As always, please contact our offices if you have questions or are in need of tax guidance and advice. We are here to serve you and exceed your tax and accounting needs.