As a micro home-based LLC selling handmade goods primarily through Etsy, I made a single…read moreoff-platform sale of $881 in November 2025. I registered with Virginia Tax in good faith when I realized my obligation, and paid in full including penalty and interest for the late November filing. Despite having zero subsequent tax liability, I was assigned monthly filing frequency and charged a $10 minimum penalty for every month I filed a $0 return. My requests for a penalty waiver and annual filing frequency were both denied. I closed the account because the administrative and financial burden was wholly disproportionate to my actual tax liability. Virginia's minimum penalty structure punishes micro businesses for honest oversights and is a significant deterrent to small business activity in the Commonwealth. I have since contacted the Taxpayer Rights Advocate, NFIB Virginia, my state delegate, and state senator about this policy.

Wow, I just had a great conversation with Customer Service! Yes, when does THAT happen at a tax…read moreagency? But the woman who helped me was so nice and - most impressive - she was able to pull up my account and information right away via the Commonwealth's computer systems and immediately find the problem I was having. Rock on Virginia!