VA Tax News

Virginia Employer Withholding Tax Deadline February 2, 2026

Virginia Tax has announced the deadline of February 2, 2026, for employers and organizations that withheld Virginia state income taxes in 2025 to submit their withholding records, including W-2 and 1099 forms. The announcement emphasizes the importance of timely submission to avoid delays in employee and retiree tax refunds. Free electronic filing options are available through eForms and Web Upload.

Paper Tax Return Postmark Deadline Tips

Virginia Tax issued filing guidance reminding paper tax return filers that returns must be postmarked on or before the due date to be considered timely filed. The agency notes recent USPS process changes may delay same-day postmarking. Three tips provided: file early, request a manual postmark at the post office, or file electronically.

Protect Yourself from Tax Scams

Virginia Tax published scam prevention guidance warning consumers about fraudsters impersonating government agencies. The advisory lists actions Virginia Tax will never take, including requesting personal information via text or social media, demanding gift card payments, or threatening arrest. Consumers are advised to report suspicious messages to the FTC and contact Virginia Tax directly for verification.

Virginia Replaces Rolling IRC Conformity with Fixed Date December 31, 2025

Virginia has enacted legislation replacing its rolling Internal Revenue Code conformity with a fixed conformity date of December 31, 2025. Under the new framework, Virginia will no longer automatically adopt most new federal tax provisions but will continue to conform to extensions of existing provisions. The legislation enables Virginia to adopt most provisions of the 2025 federal Budget Reconciliation Act (P.L. 119-21) and modifies the business interest deduction to 20% for Tax Year 2025.

Virginia Sets 8% Interest Rate for Q2 2026 Underpayments and Overpayments

Virginia has set the interest rate at 8% for both underpayments and overpayments for the 2nd quarter of 2026, effective March 10, 2026. This rate applies to all Virginia state tax matters. The change follows adjustments to federal rates for the same quarter.