Virginia Code 58.1-399.4: Effect of election.
A. If a partnership or partner makes an election pursuant to § 58.1-399.1 or 58.1-399.3, such election shall not be revocable by such partnership or partner. However, the Department may make a discretionary determination that allows such election to be revoked.
Terms Used In Virginia Code 58.1-399.4
- Audited partnership: means a partnership subject to a partnership-level audit that results in a federal adjustment. See Virginia Code 58.1-396
- Department: means the Department of Taxation. See Virginia Code 58.1-1
- Direct: means , with respect to a partner, that such partner holds a direct interest in a partnership or a pass-through entity and that such interest is not held indirectly through another partnership or pass-through entity. See Virginia Code 58.1-396
- Indirect: means , with respect to a partner, that such partner does not hold a direct interest in a partnership or pass-through entity but instead holds a direct interest in another partnership or pass-through entity that itself holds an interest directly, or through another indirect partner, in the partnership or pass-through entity. See Virginia Code 58.1-396
- Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
- Partner: means a person that holds an interest directly or indirectly in a partnership or pass-through entity. See Virginia Code 58.1-396
- Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.
- Partnership: means an entity subject to taxation under Subchapter K, Virginia Code 58.1-396
- Resident: means , with respect to an individual partner, that such partner is a resident, as defined in § Virginia Code 58.1-396
- Tiered partner: means any partner that is a partnership or a pass-through entity and is not an individual. See Virginia Code 58.1-396
B. If properly reported and paid by the audited partnership or tiered partner, the amount determined pursuant to § 58.1-399.1 or 58.1-399.3 shall be treated as paid in lieu of taxes owed by a direct or indirect partner, to the extent applicable, on the final federal adjustments. A direct partner or indirect partner shall be prohibited from claiming any subtraction, deduction, credit, or refund for such amount. This section shall not prohibit a partner that is a direct partner and a resident partner from (i) claiming a credit against taxes paid to Virginia pursuant to § 58.1-332 or (ii) claiming a credit for any amount paid by the audited partnership or tiered partner on the resident partner’s behalf to another jurisdiction in accordance with the provisions of § 58.1-332.
2020, c. 1030.