Code of Virginia - Title 58.1 Taxation - Section 58.1-2412 Surety bond requirement

§ 58.1-2412. Surety bond requirement

In addition to penalties for failure to make a timely return or pay taxes when due as provided in § 58.1-2411, the Commissioner may require any rentor, who has failed to make a timely return or pay taxes when due, to file a bond or other security to assure the Commonwealth's collection of moneys due.

The bond shall be in an amount to be determined upon investigation by the Commissioner or to be approximately three times the anticipated average monthly tax to become due by the rentor in the next succeeding three months. In no case shall the amount of the bond be less than $500 nor more than $20,000. The bond shall be (i) in such form as may be approved by the Commissioner, (ii) executed by some surety company licensed to do business under the laws of the Commonwealth of Virginia, (iii) payable to the Commonwealth of Virginia, and (iv) conditioned upon the prompt filing of true reports and the payment by such rentor to the Commissioner of any rental or additional taxes which are now or which may be hereafter levied or imposed, together with any penalties and interest thereon. Such bond shall be so written that, on timely payment of the premium thereon, it shall continue in force from year to year unless sooner terminated.

(Code 1950, § 58-685.17:3; 1982, c. 141; 1984, c. 675.)

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Last modified: April 16, 2009