500C: Underpayment of Estimated Tax by Corporations (2025)
Virginia · Virginia Tax · Used for tax years 2025
Virginia Form 500C determines whether corporations and electing pass-through entities paid enough estimated tax on time for 2025. It calculates underpayments, identifies exceptions to an additional charge, and figures any additional charge owed.
Who files this form
Form 500C is used by corporations filing Form 500 and electing pass-through entities filing Form 502PTET to determine whether they paid enough estimated tax and whether an additional charge applies.
A corporation or electing pass-through entity must make estimated tax payments if it reasonably expects its tax liability to exceed $1,000 for the taxable year. Estimated tax is the expected income tax liability minus credits.
If you use Form 500C to calculate an additional charge or show that you qualify for an exception, include your computation with Form 500 or Form 502PTET.
When it's due
For tax year 2025, estimated tax installments are due on the 15th day of the 4th, 6th, 9th, and 12th months of your taxable year. Enter those installment dates in Part I.
If you file on a basis other than a calendar year, use the dates corresponding to your taxable year.
For the 2025 additional-charge calculation, Line 14 uses the payment date or the 15th day of the 4th month after the close of your taxable year, whichever is earlier.
What you'll need
Have the following information available to complete Form 500C:
- Your business name, FEIN, mailing address, and taxable-year dates.
- Income tax reduced by allowable nonrefundable and refundable credits.
- Estimated tax amounts paid or credited for each period and the payment dates.
- Any 2024 overpayment credited toward 2025 estimated tax.
- Any withholding payments a pass-through entity made on behalf of the corporation.
- Your prior-year return if you are using a prior-year exception.
Additional computations to enclose:
- Your annualized-income computation if you claim that exception.
- A schedule showing a separate computation for each payment if you made more than one payment for a given installment.
How to file
- Complete Part I, Lines 1 through 8, to check each installment for an underpayment.
- If Line 8 shows an underpayment, complete Part II to check whether an exception applies.
- If no exception applies to an installment, complete the applicable portion of Part III, Lines 13 through 17.
- Round the total charge on Line 17 to the nearest whole dollar. Enter it on Form 500, Line 20, or Form 502PTET, Section IV, Line 16.
- Include your computation with Form 500 or Form 502PTET if you use Form 500C to calculate the charge or claim an exception.
The mailing address printed on Form 500C is:
Department of Taxation
P.O. Box 1500
Richmond, VA 23218-1500
Common mistakes
- Leaving out withholding payments. Line 4 must include any withholding payments a pass-through entity made on behalf of the corporation.
- Using calendar-year dates for a different taxable year. Enter the installment dates that correspond to your taxable year.
- Forgetting required computations. Enclose the annualized-income computation when using that exception, and a separate computation for each payment when more than one payment was made for an installment.
- Misapplying later payments. A payment on an installment date covers a previous underpayment only to the extent it exceeds the current installment amount calculated on Line 3.
- Forgetting rounding or transfer. Round Line 17 to the nearest whole dollar and carry it to the specified line on Form 500 or Form 502PTET.
Questions people ask
Does an underpayment always result in an additional charge?
No. No charge applies for an installment if, by its due date, you paid at least the minimum amount required under one of the exceptions in Part II.
What does the prior-year tax exception require?
Generally, it applies when payments meet the required amounts based on the tax shown on the previous 2024 calendar- or fiscal-year return. You must have filed a return showing a tax liability for that preceding taxable year, and that year must have consisted of 12 months.
Can I use the prior-year income exception if the prior return showed no tax liability?
Yes. Exception 2 uses current-year rates with the facts shown on the prior-year return and the law applicable to that prior year. The prior-year return does not have to show a tax liability.
How is the additional charge calculated?
If no exception applies, Part III calculates the charge for the underpayment period using the underpayment rate established under IRC § 6621, plus 2%.
Will filing an amended return change an additional charge already paid?
No. The form states that filing an amended return does not allow an adjustment to the addition to tax previously computed and paid.