Tax Type
Corporation Income Tax
Description
"Taxable income" defined; Qualified settlement fund
Topic
Computation of Income
Date Issued
01-24-1995
January 24, 1995
Re: Request for Ruling: Corporation Income Tax
Dear****************
This will reply to your letter of November 22, 1994, in which you requested a ruling regarding the Virginia taxability of a qualified settlement fund (the "Fund").
FACTS
The Fund is an entity as described in Internal Revenue Code (IRC) 468B. The Fund is treated as a corporation and any tax imposed on its modified gross income is treated as a tax imposed by IRC 11. The corporate tax treatment extends to returns, filing due dates, tax payments, and other corporate income tax requirements.
DETERMINATION
Code of Virginia §58.1-402 defines Virginia taxable income as "...federal taxable income and any other income taxable to the corporation under federal law for such year of a corporation...". Therefore, if the Fund is accorded corporate tax treatment for federal tax purposes, the same would be true for Virginia tax purposes. See Public Document 92-224 (1115192), copy enclosed. To the extent that the Fund has federal taxable income, it would be required to file a Virginia corporation income tax return, Form 500, and pay any tax due.
If you have any additional questions regarding this ruling, you may contact***************.
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- Sincerely,
Danny M. Payne
Tax Commissioner
- Sincerely,
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OTP/8774P
Rulings of the Tax Commissioner