- 1 -
|
Instructions for Preparing 2022 Form 500EC,
Virginia Cooperative Modified Net Income Tax Return
Fiscal Year Filers or Short Year Filers: Complete this line greater than 10%), then determine the number
only if your taxable year is not from January 1 to December 31. of months or fraction thereof past the original
Complete the required information as requested in spaces due date the return is being filed. Multiply the
provided at the top of Page 1. Be sure that name, address, number of months or fraction thereof times
federal employer identification number, etc., are correctly 2%, not to exceed 12%, then multiply that
reported. Check the “Final Return” box if no further Virginia percentage by Line 10 and enter on Line 11.
income tax return is required for any taxable year. (c) Late payment penalty: Any balance of tax due
NOTE: It may be beneficial to compute the nonmember share not paid with the return is subject to a 6% per
of expenses by using Method 1 (Lines 18-22) or Method 2 month late payment penalty, not to exceed
(Lines 23-25) prior to completing the return. 30%. The total of the late payment and late
filing penalties cannot exceed 30%.
Line Instructions Line 12 Interest: Enter the amount due at the underpayment
rate established by Section 6621 of the Internal
Revenue Code, plus 2%, from the due date of the
Line 1 Enter the total revenue received from electricity
return until payment. This underpayment rate is
sales in Virginia.
subject to quarterly adjustment. When penalty is
Line 2 Enter the total revenue received from electricity entered under 11(a) above, interest is added from
sales to members in Virginia. the due date to the date of payment.
Line 3 Subtract Line 2 from Line 1. Line 13 Additional charge: Enter the amount from Line 17,
Line 4 Enter the nonmember share of ordinary and Form 500C.
necessary expenses from Line 22 or Line 25. Line 14 Total due: Enter the total of Lines 10, 11, 12, and 13.
Line 5 Modified net income: Subtract Line 4 from Line 3. This is the total amount due and must be paid when
the return is filed. Enclose Form 500V with payment
Line 6 Tax: Multiply the modified net income on Line 5
due.
by 6%.
Line 15 Overpayment: Enter the amount of overpayment if
Line 7 Enter the total tax credits (nonrefundable and
Line 9 is larger than Line 8a.
refundable credits) from Schedule 500CR, Section 2,
Line 1B and Section 4, Line 1A. See special Line 16 Amount to be credited to 2023: Enter the amount
instructions at the end of these instructions for of overpayment (from Line 15) you want credited
credit amount adjustment prior to finishing the to your 2023 estimated tax, if any.
computation on Schedule 500CR. Line 17 Amount to be refunded: Subtract Line 16 from
Line 8 Modified net income tax: Subtract Line 7 from Line 6. Line 15 and enter the amount to be refunded.
Also, enter on Line 5 of Schedule 500MT.
Nonmember Ordinary and Necessary Expenses
Line 8a Enter the amount from Line 12, Schedule 500MT.
Line 9 Payments and credits: Use either Method 1 or Method 2 to calculate nonmember
ordinary and necessary expenses.
(a) Enter the total amount of estimated income tax
paid for 2022. METHOD 1 (Lines 18-22)
(b) Enter any extension payment made or any Enter expenses entirely attributable to electricity
Line 18
other payment not included in (a). sales to nonmembers in Virginia. Please enclose
Line 9 Add Lines 9(a) and 9(b). a schedule itemizing all expenses included in this
Line 10 Tax due: Subtract Line 9 from Line 8a (if applicable). figure.
This is the balance of the tax due. Line 19 Enter other expenses not entirely attributable to
Line 11 Penalty: electricity sales to either members or nonmembers
(a) Late filing penalty: If the return is filed after the in Virginia.
automatic 6-month extended due date, enter Line 20 Compute and enter nonmember electricity sales
30% of Line 10; or ratio: nonmember electricity sales in Virginia divided
(b) Extension penalty: If the return is filed during by total electricity sales in Virginia.
the automatic 6-month extension period and Line 21 Amount of other expenses allocated to electricity
the balance of tax due exceeds 10% of the sales to nonmembers in Virginia. Multiply Line 19
actual tax liability (Line 10 divided by Line 8a is by Line 20.
Va. Dept. of Taxation 2601093 Rev. 09/22
|