State and Local Taxation

COVID-19 and Virginia Taxes

COVID-19 and Virginia Tax…

Many press and blog articles are correctly focusing on what is happening right now with COVID-19. But without question, the effects of this pandemic will also last into the future. These effects could possibly change how taxes are collected, including how aggressively governments pursue audits.

No one can say for certain how federal taxes will be affected since the federal government can operate with budget deficits. However, Virginia and its localities have no such luxury and must balance their budgets. Indeed, the following actions have already happened or are under consideration in Virginia:

Finding articles such as those linked above could be done for every locality in Virginia. The crux is consistent and logical: all governments are predicting shortfalls in tax revenue. So when these governments conduct audits, will it be business as usual or will they be more aggressive? Until it happens, it will be unknown. But in case the audit is more aggressive, a smarter individual or business will have legal counsel engaged to oversee the audit.

Christian Tennant is a Virginia tax attorney and former employee of the Virginia Department of Taxation. Mr. Tennant regularly speaks and writes on Virginia taxation. In his private practice he advises and represents businesses and individuals on a range of tax matters.

Categories: COVID-19

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