Virginia Law

The estimated tax shown on the declaration shall be paid in equal installments as follows:

1. If the declaration is filed on or before May 1 of the taxable year, the estimated tax shall be paid in four equal installments. The first installment shall be paid at the time the declaration is filed and the second, third and fourth installments shall be paid on the following June 15, September 15, and January 15, respectively.

2. If the declaration is not required to be filed on or before May 1 of the taxable year, and is filed after May 1 but on or before June 15 of the taxable year, the estimated tax shall be paid in three equal installments. The first installment shall be paid at the time the declaration is filed and the second and third installments shall be paid on the following September 15 and January 15, respectively.

3. If the declaration is not required to be filed on or before June 15 of the taxable year, and is filed after June 15 but on or before September 15 of the taxable year, the estimated tax shall be paid in two equal installments. The first installment shall be paid at the time the declaration is filed and the second installment shall be paid on the following January 15.

4. If the declaration is not required to be filed on or before September 15 of the taxable year, and is filed after September 15, the estimated tax shall be paid in full at the time the declaration is filed.

5. If the declaration is filed after the due date, including cases where an extension of time has been granted, subdivisions 2, 3 and 4 of this section shall not apply. All installments of estimated tax which would have been due if the declaration had been timely filed shall be paid at or before the time of filing. The remaining installments shall be paid when, and in the amounts which, they would have been payable if the declaration had been filed when due.

6. Examples.

a. On April 15, 1988, the fiduciary of the ABC trust expects to receive $50,000 income in 1988. Under the terms of the trust instrument the fiduciary is required to distribute all income to adult beneficiaries, but may accumulate the income of a minor beneficiary. There are two beneficiaries, both of whom are adults. No declaration or payment is required on May 1, 1988, because the trust's estimated tax liability is zero. However, as a result of the death of one of the beneficiaries on August 1, 1988, a minor has become a beneficiary and the fiduciary anticipates accumulating the income of the minor. The minor's share of income for the remaining five months of the taxable year will be ½ of 5/12 of $50,000 or $10,417.

The trust's estimated tax on $10,417 is $391 for the taxable year which must be paid in installments, one-half on or before September 15, 1988, and the remaining half on or before January 15, 1989.

b. On April 15, 1988, the fiduciary of Trust DEF expected its estimated tax for 1988 to be $500. Therefore, a declaration and an installment payment of $125 were due on May 1, 1988, but were not made. The omission is discovered on September 1, 1988. The first three installments totaling $375 are due on or before September 15, 1988. The remaining installment of $125 is due on or before January 15, 1989.

c. Same facts as in example b except that due to a change in circumstances the fiduciary discovers on August 31 that the estimated tax for 1988 should be $2,000 instead of $500. The first three installments totaling $1,500 are due on or before September 15, 1988, and the remaining installment of $500 is due on or before January 15, 1989.