VIRGINIA TAX CHANGES

[TAXMAN]

Virginia tax law changes on the 26th of Feb conforming to the medical deduction as allowed by federal for 2017 thus requiring an adj if used. My question to you VA preparers are you going to amend those VA returns for this and at what might be an acceptable change before we amend. Anyone know what the state will have as an allowance in change. I checked one of mind and it only made a $3 difference. Just kinda fishing on how we may want to handle this. 

[Gail in Virginia]

I haven't really had time to think about this latest revenue enhancement after the fact change in tax law.  I have a few clients that itemize and actually use some of their medical, but I have not gone back and looked at them yet.  Virginia is more sensitive about a few dollars than the federal, so I may use a cut off of $10 tax (maybe $5) but I haven't really thought about it yet.

[Pacun]

I would give a choice to my clients: Please pay me $200 to amend and you will get a refund of ten bucks. If they don't want to pay me, I will explain the consequences of such action.

Of course the consequences will be that they will save $190. I always keep materiality in mind when no adverse consequences.

[Christian]

I vote with Pacun . Gail's remark brought back a memory in which a very conservative older client argued with the state over an $8.00 penalty for some six months. 

[Gail in Virginia]

The problem with Pacun's statement is that they aren't going to be getting refunds from the state - they will owe.  So it is you can pay me $200 to amend (more like $100 in my neck of the woods) and you will owe the state of Virignia an extra $10.  Or you can wait and let them bill you the tax plus penalty and interest, which will probably be between $15 and $20 depending on when they get around to noticing.