Tax Type
Employer Income Tax Withholding
Description
Annuitants
Topic
Withholding of Tax
Date Issued
07-07-1987
July 7, 1987
Re: Ruling Request: Withholding
Dear ******************
This will reply to your letters of January 13 and April 27, 1987 requesting permission for ************** (the "Company") to offer voluntary Virginia income tax withholding to its service pensioners/annuitants on a flat dollar amount basis.
Permission is hereby granted for the Company to remit withholding tax from its service pensioners/annuitants in an amount indicated by each pensioner. Such withholding tax is to be remitted under the Company's present registration number and at the same time and in the same manner as withholding from the Company's employees. However, the Company should advise its service pensioners/annuitants that they remain responsible for assuring that they have remitted, either by means of withholding or estimated payments, 90% of the income tax they owe to avoid imposition of the penalty for underpayment of estimated tax.
This permission in no way relieves the Company of its obligation to otherwise comply with applicable law, including reporting to its service pensioners/annuitants the amounts withheld from them for the year. Moreover, the Department of Taxation hereby reserves the right in its sole discretion to withdraw this permission upon notice to the Company at the address above.
Sincerely,
W. H. Forst
Tax Commissioner
Rulings of the Tax Commissioner