Tax Type
Individual Income Tax
Partnerships
Description
Consolidated nonresident partner income tax return; Partnerships
Topic
Partnerships
Returns/Payments/Records
Date Issued
05-28-1985
May 28, 1985
Re: Request for Ruling/Partnerships
Dear ****
This will reply to your letter of April 23, 1985 in which you request approval of an alternative method for use by ***** in computing the Virginia individual income tax liability of the firm's partners who reside outside of Virginia.
The alternative method proposed in your April 23, 1985 letter is hereby accepted for use in filing a consolidated nonresident partnership income tax return for ***** nonresident partners for taxable year 1984. Accordingly, the return submitted with your letter has been accepted by the department.
As requested in your letter ***** should each year file a partnership return within four months and fifteen days after the close of its fiscal year and have its Virginia partners include their partnership income on their own individual income tax returns. In addition, ***** may file a consolidated return each year on behalf of its nonresident partners except that partners domiciled in Maryland, California, and certain other states will be subject to tax on Virginia source income to their state of residence (see Section 630-2-332 of the Virginia Individual Income Tax Regulations). In filing such a consolidated return, ***** should include: (1) a schedule allocating and apportioning the firm's net income to Virginia in accordance with Section 630-4-391.C. of the Virginia Taxation of Partnerships Regulations, (2) a listing of the names, addresses, Social Security numbers and partnership shares of each partner, and (3) a description of the method used for determining tax. Tax will be computed at a flat rate of 5.75 percent with no deduction from Virginia taxable income on account of personal exemptions or itemized deductions.
While this letter authorizes ***** to file annual consolidated returns for its nonresident partners, the method used by the firm for the allocation of partnership income to Virginia sources must be approved each year by the department.
Sincerely,
W. H. Forst
Tax Commissioner
Re: Request for Ruling/Partnerships
Dear ****
This will reply to your letter of April 23, 1985 in which you request approval of an alternative method for use by ***** in computing the Virginia individual income tax liability of the firm's partners who reside outside of Virginia.
The alternative method proposed in your April 23, 1985 letter is hereby accepted for use in filing a consolidated nonresident partnership income tax return for ***** nonresident partners for taxable year 1984. Accordingly, the return submitted with your letter has been accepted by the department.
As requested in your letter ***** should each year file a partnership return within four months and fifteen days after the close of its fiscal year and have its Virginia partners include their partnership income on their own individual income tax returns. In addition, ***** may file a consolidated return each year on behalf of its nonresident partners except that partners domiciled in Maryland, California, and certain other states will be subject to tax on Virginia source income to their state of residence (see Section 630-2-332 of the Virginia Individual Income Tax Regulations). In filing such a consolidated return, ***** should include: (1) a schedule allocating and apportioning the firm's net income to Virginia in accordance with Section 630-4-391.C. of the Virginia Taxation of Partnerships Regulations, (2) a listing of the names, addresses, Social Security numbers and partnership shares of each partner, and (3) a description of the method used for determining tax. Tax will be computed at a flat rate of 5.75 percent with no deduction from Virginia taxable income on account of personal exemptions or itemized deductions.
While this letter authorizes ***** to file annual consolidated returns for its nonresident partners, the method used by the firm for the allocation of partnership income to Virginia sources must be approved each year by the department.
Sincerely,
W. H. Forst
Tax Commissioner
Rulings of the Tax Commissioner