Common questions and answers regarding Virginia Form 502PTET with an 1120S and 1065 return using CCH® ProSystem fx® Tax and CCH Axcess™ Tax.

  • Article Type:
  • QA
  • Last Modified:
  • 01/17/2024

Question


What are some common questions and answers regarding Virginia passthrough entity tax with an S Corporation and Partnership return?

    Environment

    • CCH® ProSystem fx® Tax
    • CCH Axcess™ Tax
    • Partnership – 1065
    • S Corporation – 1120S
    • Virginia - VA
    • Worksheet View – WSV
    • Interview Forms - IVF

    Answer

    QuestionAnswer
    -Form Name
    • 502PTET
    -State Links
    Election for PTE
    -Is an Election Required?
    • Election is not required. Only entities solely consisting of Individuals, Trusts, and Estates may file for the PTET in Virginia.
    -Option  to Opt-Out?
    Generation of State PTE Return
    -How do we generate the form above?
    • Common State/City > State PTE Generation > State PTE Return Generation > Virginia - Generate State PTE return.
      • Interview Form PTE-ST1, Box 254.
    Estimates
    -Are there estimates for this form?
    • A filing instruction / transmittal letter is prepared with tax year 2022 directing clients to Virginia Department of Taxation for payment information: https://www.tax.virginia.gov/payments
    -Can we apply an overpayment from the current year form?1065 - Yes
    • Go to Virginia > Payments / Penalties worksheet > Section 1 - Tax Payments - Form 502 > Line 3 - Amount of overpayment to be credited to next year.
      • Interview Form Virginia > VA2, box 100.
    1120S - Yes
    Interest/Penalties
    -Do interest/penalties apply?
    • Interest and penalties apply and they are the same calculation as the main 502 return.
    -Is there an underpayment penalty?
    • No.
    Additional PTE Information
    Common State > State PTE Generation worksheet >Grid 23  (Interview PTE-ST1, boxes 300-364)
    -Does this section apply to this state?
    • No.
    Additional Input Available
    - Does new input options under State and City Tax Refund flow to the state?
    • No.
    - Does new input options under Taxes and Licenses flow to the state?
    • No.
    - Does new input options under Rent/Royalty flow to the state?
    • No.
    - Does the new input options under Farm flow to the state?
    • No.

    Notes

    Extension

    • An automatic 6-month filing extension is allowed for pass-through entities filing on Form 502.
      • No application for extension is required.
      • To avoid late-filing penalties, you must file Form 502 no later than 6 months from the original due date of the return -
      • https://www.tax.virginia.gov/pass-through-entities

    Payments are made Online

    • eForm 502W  lets you make withholding payments directly from your PTE's checking account.
    • ACH credit is available for tax due payments or withholding payments if paying separately from filing the return. You'll need to set this up with your PTE's bank. Detailed instructions about initiating ACH credit transactions are available in our Electronic Payment Guide
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