Tax Type
Individual Income Tax
Partnerships
Description
Nonresident partners; Conditions for filing a unified nonresident individual income tax return
Topic
Partnerships
Returns/Payments/Records
Date Issued
01-15-1987
January 15, 1987
Re: Ruling Request - Nonresident Partners
Individual Income Tax
Dear******************
This is in reply to your letter of March 27, 1986 and the meeting held on March 18, 1986 concerning the department's ruling of February 26, 1986. You have requested that the department reconsider the requirements imposed for filing a unified nonresident individual income tax return for the nonresident partners of ********** (Partnership).
Specifically, you ask that the department modify or waive the requirements imposed under conditions 3, 5 and 6 in the ruling dated February 26, 1986. These three conditions currently require, in order for Partnership to file a unified return on behalf of its Virginia nonresident partners, that:
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- 3. All nonresident partners without other income from Virginia sources must elect to join in the filing of such a return and a statement to such effect will be included in the return.
5. The Virginia income tax will be computed at 5.75 percent of Partnership's income attributable to the nonresident partners without benefit of itemized deductions, standard deductions, personal exemptions or credit for income taxes paid to states of residence.
6. The return will contain a statement indicating the responsibility of each nonresident partner for his share of the total tax and any statements made on his behalf. The statement will be signed by each nonresident partner.
- 3. All nonresident partners without other income from Virginia sources must elect to join in the filing of such a return and a statement to such effect will be included in the return.
Based upon the information presented in the meeting held March 18, 1986 with members of the department's Tax Policy Division and upon the information presented in your letter of March 27, 1986, the department agrees to modify or waive the requirements imposed under the above conditions. The department's ruling issued February 26, 1986 is hereby amended by substituting the following conditions in place of conditions 3, 5 and 6 in the original ruling.
3A. Only nonresidents of Virginia without other income from Virginia sources may elect to join in the filing of such a return and a statement to such effect will be included in the return.
5A. The Virginia income tax will be computed at the rates specified under Virginia Code §58.1-320 on Partnership's income attributable to the electing nonresident partners without benefit of itemized deductions, standard deductions, personal exemptions or credit for income taxes paid to states of residence.
6A. The return will contain a statement indicating the responsibility of each electing nonresident partner for his share of the total tax and any statements made on his behalf. The statement will be signed by each electing nonresident partner.
The department reserves the right to withdraw or to modify the foregoing authorization upon reasonable notice to you.
If the above is acceptable, Partnership may commence the unified filing under the above conditions and conditions 1, 2, 4 and 7 of the original ruling effective for calendar year 1985. Partnership's amended return for taxable year 1985 is due 60 days from the date of this letter.
If the above is not acceptable, please note that each nonresident partner having taxable income for a taxable year must file a Virginia return, unless the individual meets the "$3.000 filing exception" described in Virginia Code §58.1-321.
If you have any questions regarding the terms or conditions of the above agreement, please contact ********** Director, Tax Policy Division.
Sincerely,
W. H. Forst
Tax Commissioner
Rulings of the Tax Commissioner