{"data":{"id":"us-va/23vac10-120-82","jurisdiction":"us-va","citation":"23VAC10-120-82","heading":"Telecommunications companies; imposition of tax","body":"A. Generally. Telecommunications companies must calculate both their minimum tax as provided in 23VAC10-120-83 and their income tax liability as provided in 23VAC10-120-84 for each taxable year. For each taxable year, the tax liability of a telecommunications company will be the greater of its minimum tax or of its corporate income tax.\n\nB. Amended return. If due to a change in federal taxable income, or for any other reason, the Virginia taxable income or gross receipts of a telecommunications company is changed, an amended return must be filed. The minimum tax and corporate income tax must be recomputed to determine which tax is applicable to the telecommunications company.\n\nEXAMPLE 1: Telecommunications Company (TC) is a calendar year filer for federal income tax purposes. For calendar year 1990, it has $200,000 in gross receipts and Virginia taxable income equal to $35,000. TC's minimum tax liability is $2,400 ($200,000 X 1.2%) and its Virginia income tax is $2,100 ($35,000 X 6.0%). Because TC's minimum tax liability exceeds its income tax liability, it is subject to the minimum tax and must pay $2,400 in tax.\n\nEXAMPLE 2: Same facts as in Example 1. In 1993 the Internal Revenue Service audits TC for calendar year 1990 and determines that the company overreported its wage expense by $6,000; thus TC's federal taxable income for calendar year 1990 was underreported by $6,000. TC subsequently amends its Virginia income tax return for calendar year 1990 to report the additional $6,000 in taxable income. The amended return still shows a minimum tax liability of $2,400 (no charge in gross receipts) and an income tax liability of $2,460, 6.0% of ($35,000 + 6,000). Since TC's income tax liability is now higher than its minimum tax liability, it is now subject to the income tax. TC owes the department $60 ($2,460 - $2,400).","path":["Title 23. Taxation","Agency 10. Department of Taxation","Chapter 120. Corporation Income Tax"],"source_url":"https://law.lis.virginia.gov/admincode/title23/agency10/chapter120/section82/","current_through":"2026 Regular Session (effective July 1, 2026)","vintage":"","retrieved_at":"2026-09-14T04:54:12Z","sha256":"6100e5b5e830e477abd62e59cda1e56559ddb8c9cd10b8918593a7ea9eee5160","source_id":"us-va-vac","stale":false,"prev":"us-va/23vac10-120-81","next":"us-va/23vac10-120-83"},"notice":"GroundRules: Original legal text. Not legal advice."}