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Prevent Taxation of Payments to Virginia Tech Victims and Families Act
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On December 19, 2007, President Bush signed into law the "Prevent Taxation of Payments to Virginia Tech Victims and Families Act (H.R. 4118)." Payments From the Hokie Spirit Memorial Fund are EXCLUDED from Income This new law EXCLUDES from gross income any amount received from the Virginia Polytechnic Institute & State University, out of amounts transferred from the Hokie Spirit Memorial Fund established by the Virginia Tech Foundation, if the amount is paid because of the tragic event on April 16, 2007, at the university. Penalty Increase for Late-Filed Partnership Returns The penalty for filing a partnership return late is increased by $1 per partner, per month, up to 12 months. This penalty increase is effective for taxable years beginning in 2008. This brings the penalty amount up from $85 to $86 per partner beginning January 1, 2008. NOTE: Prior to December 21, 2007 the penalty was $50 per partner. As of December 21, 2007, the penalty has been INCREASED by an additional $35.00 with the passage of the Mortgage Forgiveness Debt Relief Act of 2007 which was signed into law by President Bush one day after the signing of the Prevent Taxation of Payments to Virginia Tech Victims and Families Act. So for late-filed partnership returns filed PRIOR to December 21, 2007 the penalty is $50 per partner, for returns filed between December 21 - 31, 2007, the penalty is $85 per partner, and for returns filed on or after January 1, 2008, the penalty is $86.00 per partner. The purpose for this $1 penalty increase is to offset lost tax revenues by the exclusion of income from the Hokie Spirit Memorial Fund to victims of the Virginia Tech tragic event as discussed above. View the Entire Act (Tax Bill) Passed By U.S. Congress |
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