Bulletin Number
VTB 88-2
Tax Type
Individual Income Tax
Partnerships
Description
Repeal of Partnership Return Filing Requirements
Topic
Partnerships
Date Issued
03-29-1988
Repeal of Partnership Return Filing Requirements
Partnerships organized under Virginia law or which have income from Virginia a sources will no longer be required to file Virginia partnership returns under legislation proposed by Governor Baliles and recently enacted by the General Assembly.
House Bill 242 repeals the current partnership return filing requirements set forth in §58.1-392 of the Code of Virginia. This law change became effective upon the signature of the Governor; thus, the department will not require the filing of Virginia Partnership returns (Form 501) for taxable years beginning on or after January 1, 1987.
House Bill 242 provides the Tax Commissioner with the authority to:
- Develop regulations requiring that partnerships furnish information, such as copies of federal partnership returns, to the department upon request;
- Impose a $100 penalty upon partnerships which fail to furnish. within a reasonable time, information requested by the department; and
- In the same manner as set forth in §58.1-451 of the Code of Virginia, impose a penalty of up to $1,000 upon any partnership that which provides fraudulent information to the department.
In the same manner as set forth in §58.1-452 of the Code of Virginia, the bill also provides that partnerships which provide fraudulent information to the department will be guilty of a Class 1 misdemeanor.
The repeal of the Virginia partnership return requirement does not relieve resident or nonresident partners with partnership income from Virginia sources from the filing of Virginia income tax returns. Further, the law change will not affect the filing of unified ("block filing") nonresident income tax returns by partnerships which have been granted permission to do so by the Tax Commissioner.
Tax Bulletins