{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/58.1-396.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/58.1-396.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/58.1-396.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/58.1-396.html"}],"law_id":67971,"edition_id":1,"section_id":67971,"structure_id":15666,"section_number":"58.1-396","catch_line":"Definitions","history":"2020, c. 1030.","full_text":"As used in this article, unless the context requires otherwise:\n\t\t“Administrative adjustment request” means an administrative adjustment request filed by a partnership pursuant to \u00a7 6227 of the Internal Revenue Code.\n\t\t“Audited partnership” means a partnership subject to a partnership-level audit that results in a federal adjustment.\n\t\t“Corporate partner” means a partner that is subject to tax under Article 10 (\u00a7 58.1-400 et seq.).\n\t\t“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.\n\t\t“Exempt” means, with respect to a partner, that such partner is exempt from Virginia income taxation. If such partner has unrelated business taxable income but otherwise is exempt from Virginia income taxation, such partner shall considered exempt.\n\t\t“Federal adjustment” means a change to an item or amount determined under the Internal Revenue Code that is used by a taxpayer to compute Virginia tax owed, regardless of whether that change results from an action by the Internal Revenue Service including a partnership-level audit, or the filing of an amended federal return, federal refund claim, or administrative adjustment request by the taxpayer. A federal adjustment is positive to the extent that it increases Virginia taxable income and is negative to the extent that it decreases Virginia taxable income.\n\t\t“Federal adjustments report” means any methods or forms required by the Department for use by a partner or partnership to report final federal adjustments.\n\t\t“Federal partnership representative” means the person that a partnership designates for the taxable year as its representative or the person that the Internal Revenue Service appoints pursuant to \u00a7 6223(a) of the Internal Revenue Code to act as the federal partnership representative.\n\t\t“Final determination date” means the date determined pursuant to the provisions of \u00a7 58.1-311.2.\n\t\t“Final federal adjustment” means a federal adjustment for which the final determination date has passed.\n\t\t“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.\n\t\t“Nonresident” means, with respect to an individual, estate, or trust partner, that such partner is not a resident partner.\n\t\t“Partner” means a person that holds an interest directly or indirectly in a partnership or pass-through entity.\n\t\t“Partnership” means an entity subject to taxation under Subchapter K, 26 U.S.C. \u00a7 701 et seq., of Chapter 1 of Subtitle A of the Internal Revenue Code.\n\t\t“Partnership-level audit” means an examination by the Internal Revenue Service at the partnership level pursuant to Subchapter C, 26 U.S.C. \u00a7 6221 et seq., of Chapter 63 of Subtitle F of the Internal Revenue Code that results in federal adjustments.\n\t\t“Pass-through entity” means any pass-through entity as defined in \u00a7 58.1-390.1, other than a partnership as defined in this section.\n\t\t“Resident” means, with respect to an individual partner, that such partner is a resident, as defined in \u00a7 58.1-302, for the relevant tax period. “Resident” means, with respect to an estate or trust partner, that such partner is a resident estate or trust, as defined in \u00a7 58.1-302, for the relevant tax period.\n\t\t“Reviewed year” means the taxable year of a partnership that is subject to a partnership-level audit from which federal adjustments arise.\n\t\t“State partnership representative” means the person identified as the representative of a partnership pursuant to the provisions of \u00a7 58.1-398.\n\t\t“Tiered partner” means any partner that is a partnership or a pass-through entity and is not an individual.\n\t\t“Unrelated business taxable income” has the same meaning as such term is defined in \u00a7 512 of the Internal Revenue Code.","order_by":null,"text":{"0":{"id":246142,"text":"As used in this article, unless the context requires otherwise:\n\t\t“Administrative adjustment request” means an administrative adjustment request filed by a partnership pursuant to \u00a7 6227 of the Internal Revenue Code.\n\t\t“Audited partnership” means a partnership subject to a partnership-level audit that results in a federal adjustment.\n\t\t“Corporate partner” means a partner that is subject to tax under Article 10 (\u00a7 58.1-400 et seq.).\n\t\t“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.\n\t\t“Exempt” means, with respect to a partner, that such partner is exempt from Virginia income taxation. If such partner has unrelated business taxable income but otherwise is exempt from Virginia income taxation, such partner shall considered exempt.\n\t\t“Federal adjustment” means a change to an item or amount determined under the Internal Revenue Code that is used by a taxpayer to compute Virginia tax owed, regardless of whether that change results from an action by the Internal Revenue Service including a partnership-level audit, or the filing of an amended federal return, federal refund claim, or administrative adjustment request by the taxpayer. A federal adjustment is positive to the extent that it increases Virginia taxable income and is negative to the extent that it decreases Virginia taxable income.\n\t\t“Federal adjustments report” means any methods or forms required by the Department for use by a partner or partnership to report final federal adjustments.\n\t\t“Federal partnership representative” means the person that a partnership designates for the taxable year as its representative or the person that the Internal Revenue Service appoints pursuant to \u00a7 6223(a) of the Internal Revenue Code to act as the federal partnership representative.\n\t\t“Final determination date” means the date determined pursuant to the provisions of \u00a7 58.1-311.2.\n\t\t“Final federal adjustment” means a federal adjustment for which the final determination date has passed.\n\t\t“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.\n\t\t“Nonresident” means, with respect to an individual, estate, or trust partner, that such partner is not a resident partner.\n\t\t“Partner” means a person that holds an interest directly or indirectly in a partnership or pass-through entity.\n\t\t“Partnership” means an entity subject to taxation under Subchapter K, 26 U.S.C. \u00a7 701 et seq., of Chapter 1 of Subtitle A of the Internal Revenue Code.\n\t\t“Partnership-level audit” means an examination by the Internal Revenue Service at the partnership level pursuant to Subchapter C, 26 U.S.C. \u00a7 6221 et seq., of Chapter 63 of Subtitle F of the Internal Revenue Code that results in federal adjustments.\n\t\t“Pass-through entity” means any pass-through entity as defined in \u00a7 58.1-390.1, other than a partnership as defined in this section.\n\t\t“Resident” means, with respect to an individual partner, that such partner is a resident, as defined in \u00a7 58.1-302, for the relevant tax period. “Resident” means, with respect to an estate or trust partner, that such partner is a resident estate or trust, as defined in \u00a7 58.1-302, for the relevant tax period.\n\t\t“Reviewed year” means the taxable year of a partnership that is subject to a partnership-level audit from which federal adjustments arise.\n\t\t“State partnership representative” means the person identified as the representative of a partnership pursuant to the provisions of \u00a7 58.1-398.\n\t\t“Tiered partner” means any partner that is a partnership or a pass-through entity and is not an individual.\n\t\t“Unrelated business taxable income” has the same meaning as such term is defined in \u00a7 512 of the Internal Revenue Code.","type":"section","prefixes":[""],"prefix":"","entire_prefix":"","prefix_anchor":"","level":1}},"ancestry":[{"id":15666,"edition_id":1,"name":"Reporting Adjustments to Federal Taxable Income from Federal Partnership Audits","identifier":"9.1","label":"article","depth":4,"order_by":1,"parent_id":13152,"metadata":{},"date_created":"2026-06-26 03:57:38","date_modified":"2026-06-26 03:57:38","permalink":{"id":254497,"object_type":"structure","relational_id":15666,"identifier":"9.1","token":"58.1\/I\/3\/9.1","url":"\/58.1\/I\/3\/9.1\/","edition_id":1,"permalink":0,"preferred":1}},{"id":13152,"edition_id":1,"name":"Income Tax","identifier":"3","label":"chapter","depth":3,"order_by":1,"parent_id":12837,"metadata":{},"date_created":"2026-06-26 03:44:21","date_modified":"2026-06-26 03:44:21","permalink":{"id":253267,"object_type":"structure","relational_id":13152,"identifier":"3","token":"58.1\/I\/3","url":"\/58.1\/I\/3\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12837,"edition_id":1,"name":"Taxes Administered by the Department of Taxation","identifier":"I","label":"subtitle","depth":2,"order_by":1,"parent_id":12703,"metadata":{},"date_created":"2026-06-26 03:43:55","date_modified":"2026-06-26 03:43:55","permalink":{"id":252075,"object_type":"structure","relational_id":12837,"identifier":"I","token":"58.1\/I","url":"\/58.1\/I\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12703,"edition_id":1,"name":"Taxation","identifier":"58.1","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:43:49","date_modified":"2026-06-26 03:43:49","permalink":{"id":251959,"object_type":"structure","relational_id":12703,"identifier":"58.1","token":"58.1","url":"\/58.1\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":67971,"structure_id":15666,"section_number":"58.1-396","catch_line":"Definitions","url":"\/58.1-396\/","token":"58.1\/I\/3\/9.1\/58.1-396","metadata":false},{"id":65681,"structure_id":15666,"section_number":"58.1-397","catch_line":"Reporting requirement; administrative adjustment requests","url":"\/58.1-397\/","token":"58.1\/I\/3\/9.1\/58.1-397","metadata":false},{"id":64151,"structure_id":15666,"section_number":"58.1-398","catch_line":"State partnership representative","url":"\/58.1-398\/","token":"58.1\/I\/3\/9.1\/58.1-398","metadata":false},{"id":74602,"structure_id":15666,"section_number":"58.1-399","catch_line":"Reporting and payment requirements for a partnership subject to a final federal adjustment","url":"\/58.1-399\/","token":"58.1\/I\/3\/9.1\/58.1-399","metadata":false},{"id":79092,"structure_id":15666,"section_number":"58.1-399.1","catch_line":"Elective payment by a partnership","url":"\/58.1-399.1\/","token":"58.1\/I\/3\/9.1\/58.1-399.1","metadata":false},{"id":77477,"structure_id":15666,"section_number":"58.1-399.2","catch_line":"Tiered partners","url":"\/58.1-399.2\/","token":"58.1\/I\/3\/9.1\/58.1-399.2","metadata":false},{"id":68782,"structure_id":15666,"section_number":"58.1-399.3","catch_line":"Alternative reporting and payment method","url":"\/58.1-399.3\/","token":"58.1\/I\/3\/9.1\/58.1-399.3","metadata":false},{"id":59939,"structure_id":15666,"section_number":"58.1-399.4","catch_line":"Effect of election","url":"\/58.1-399.4\/","token":"58.1\/I\/3\/9.1\/58.1-399.4","metadata":false},{"id":87004,"structure_id":15666,"section_number":"58.1-399.5","catch_line":"Failure to pay","url":"\/58.1-399.5\/","token":"58.1\/I\/3\/9.1\/58.1-399.5","metadata":false},{"id":60112,"structure_id":15666,"section_number":"58.1-399.6","catch_line":"De minimis exception","url":"\/58.1-399.6\/","token":"58.1\/I\/3\/9.1\/58.1-399.6","metadata":false},{"id":72733,"structure_id":15666,"section_number":"58.1-399.7","catch_line":"Administration","url":"\/58.1-399.7\/","token":"58.1\/I\/3\/9.1\/58.1-399.7","metadata":false}],"next_section":{"id":65681,"structure_id":15666,"section_number":"58.1-397","catch_line":"Reporting requirement; administrative adjustment requests","url":"\/58.1-397\/","token":"58.1\/I\/3\/9.1\/58.1-397","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/58.1-396\/","history_text":"

This law was first created in 2020. The record of its establishment is cataloged in chapter 1030<\/a> of that year\u2019s edition of \u201cActs of Assembly,\u201d the annual state publication listing all changes made to the Code of Virginia in that year.<\/p>","references":[{"id":59617,"section_number":"58.1-311.2","catch_line":"Final determination date","order_by":null,"url":"\/58.1-311.2\/"}],"refers_to":[{"id":82538,"section_number":"58.1-302","catch_line":"Definitions","order_by":null,"url":"\/58.1-302\/"},{"id":59617,"section_number":"58.1-311.2","catch_line":"Final determination date","order_by":null,"url":"\/58.1-311.2\/"},{"id":59823,"section_number":"58.1-390.1","catch_line":"Definitions","order_by":null,"url":"\/58.1-390.1\/"},{"id":64151,"section_number":"58.1-398","catch_line":"State partnership representative","order_by":null,"url":"\/58.1-398\/"},{"id":60955,"section_number":"58.1-400","catch_line":"Imposition of tax","order_by":null,"url":"\/58.1-400\/"}],"permalink":{"id":254499,"object_type":"law","relational_id":67971,"identifier":"58.1-396","token":"58.1\/I\/3\/9.1\/58.1-396","url":"\/58.1-396\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/58.1-396\/","token":"58.1\/I\/3\/9.1\/58.1-396","dublin_core":{"Title":"Definitions","Type":"Text","Format":"text\/html","Identifier":"\u00a7 58.1-396","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

As used in this article, unless the context requires otherwise:\n\t\t“Administrative adjustment request<\/span>” means an administrative adjustment request<\/span> filed by a partnership pursuant to \u00a7 6227 of the Internal Revenue Code.\n\t\t“Audited partnership<\/span>” means a partnership subject to a partnership-level audit<\/span> that results in a federal adjustment.\n\t\t“Corporate partner<\/span>” means a partner that is subject to tax under Article 10 (\u00a7 58.1-400<\/a> et seq.).\n\t\t“Direct” means, with respect to a partner, that such partner holds a direct interest in a partnership or a pass-through entity<\/span> and that such interest is not held indirectly through another partnership or pass-through entity<\/span>.\n\t\t“Exempt” means, with respect to a partner, that such partner is exempt from Virginia income taxation. If such partner has unrelated business taxable income<\/span> but otherwise is exempt from Virginia income taxation, such partner shall considered exempt.\n\t\t“Federal adjustment” means a change to an item or amount determined under the Internal Revenue Code that is used by a taxpayer<\/span> to compute Virginia tax owed, regardless of whether that change results from an action by the Internal Revenue Service including a partnership-level audit<\/span>, or the filing of an amended federal return, federal refund claim, or administrative adjustment request<\/span> by the taxpayer<\/span>. A federal adjustment is positive to the extent that it increases Virginia taxable income and is negative to the extent that it decreases Virginia taxable income.\n\t\t“Federal adjustments report<\/span>” means any methods or forms required by the Department<\/span> for use by a partner or partnership to report final federal adjustments<\/span>.\n\t\t“Federal partnership representative<\/span>” means the person that a partnership designates for the taxable year as its representative or the person that the Internal Revenue Service appoints pursuant to \u00a7 6223(a) of the Internal Revenue Code to act as the federal partnership representative<\/span>.\n\t\t“Final determination date<\/span>” means the date determined pursuant to the provisions of \u00a7 58.1-311.2<\/a>.\n\t\t“Final federal adjustment<\/span>” means a federal adjustment for which the final determination date<\/span> has passed.\n\t\t“Indirect” means, with respect to a partner, that such partner does not hold a direct interest in a partnership or pass-through entity<\/span> but instead holds a direct interest in another partnership or pass-through entity<\/span> that itself holds an interest directly, or through another indirect partner, in the partnership or pass-through entity<\/span>.\n\t\t“Nonresident” means, with respect to an individual<\/span>, estate<\/span>, or trust<\/span> partner, that such partner is not a resident<\/span> partner.\n\t\t“Partner” means a person that holds an interest directly or indirectly in a partnership or pass-through entity<\/span>.\n\t\t“Partnership” means an entity subject to taxation under Subchapter K, 26 U.S.C. \u00a7 701 et seq., of Chapter 1 of Subtitle A of the Internal Revenue Code.\n\t\t“Partnership-level audit<\/span>” means an examination by the Internal Revenue Service at the partnership level pursuant to Subchapter C, 26 U.S.C. \u00a7 6221 et seq., of Chapter 63 of Subtitle F of the Internal Revenue Code that results in federal adjustments.\n\t\t“Pass-through entity<\/span>” means any pass-through entity<\/span> as defined in \u00a7 58.1-390.1<\/a>, other than a partnership as defined in this section.\n\t\t“Resident<\/span>” means, with respect to an individual<\/span> partner, that such partner is a resident<\/span>, as defined in \u00a7 58.1-302<\/a>, for the relevant tax period. “Resident<\/span>” means, with respect to an estate<\/span> or trust<\/span> partner, that such partner is a resident<\/span> estate<\/span> or trust<\/span>, as defined in \u00a7 58.1-302<\/a>, for the relevant tax period.\n\t\t“Reviewed year<\/span>” means the taxable year of a partnership that is subject to a partnership-level audit<\/span> from which federal adjustments arise.\n\t\t“State partnership representative<\/span>” means the person identified as the representative of a partnership pursuant to the provisions of \u00a7 58.1-398<\/a>.\n\t\t“Tiered partner<\/span>” means any partner that is a partnership or a pass-through entity<\/span> and is not an individual<\/span>.\n\t\t“Unrelated business taxable income<\/span>” has the same meaning as such term is defined in \u00a7 512 of the Internal Revenue Code.<\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nDEFINITIONS (\u00a7 58.1-396)\n\nAs used in this article, unless the context requires otherwise:\n\t\t“Administrative adjustment request” means an administrative\nadjustment request filed by a partnership pursuant to \u00a7 6227 of the Internal\nRevenue Code.\n\t\t“Audited partnership” means a partnership subject to a\npartnership-level audit that results in a federal adjustment.\n\t\t“Corporate partner” means a partner that is subject to tax under\nArticle 10 (\u00a7 58.1-400 et seq.).\n\t\t“Direct” means, with respect to a partner, that such partner holds\na direct interest in a partnership or a pass-through entity and that such\ninterest is not held indirectly through another partnership or pass-through\nentity.\n\t\t“Exempt” means, with respect to a partner, that such partner is\nexempt from Virginia income taxation. If such partner has unrelated business\ntaxable income but otherwise is exempt from Virginia income taxation, such\npartner shall considered exempt.\n\t\t“Federal adjustment” means a change to an item or amount\ndetermined under the Internal Revenue Code that is used by a taxpayer to compute\nVirginia tax owed, regardless of whether that change results from an action by\nthe Internal Revenue Service including a partnership-level audit, or the filing\nof an amended federal return, federal refund claim, or administrative adjustment\nrequest by the taxpayer. A federal adjustment is positive to the extent that it\nincreases Virginia taxable income and is negative to the extent that it\ndecreases Virginia taxable income.\n\t\t“Federal adjustments report” means any methods or forms required\nby the Department for use by a partner or partnership to report final federal\nadjustments.\n\t\t“Federal partnership representative” means the person that a\npartnership designates for the taxable year as its representative or the person\nthat the Internal Revenue Service appoints pursuant to \u00a7 6223(a) of the\nInternal Revenue Code to act as the federal partnership representative.\n\t\t“Final determination date” means the date determined pursuant to\nthe provisions of \u00a7 58.1-311.2.\n\t\t“Final federal adjustment” means a federal adjustment for which\nthe final determination date has passed.\n\t\t“Indirect” means, with respect to a partner, that such partner\ndoes not hold a direct interest in a partnership or pass-through entity but\ninstead holds a direct interest in another partnership or pass-through entity\nthat itself holds an interest directly, or through another indirect partner, in\nthe partnership or pass-through entity.\n\t\t“Nonresident” means, with respect to an individual, estate, or\ntrust partner, that such partner is not a resident partner.\n\t\t“Partner” means a person that holds an interest directly or\nindirectly in a partnership or pass-through entity.\n\t\t“Partnership” means an entity subject to taxation under Subchapter\nK, 26 U.S.C. \u00a7 701 et seq., of Chapter 1 of Subtitle A of the Internal Revenue\nCode.\n\t\t“Partnership-level audit” means an examination by the Internal\nRevenue Service at the partnership level pursuant to Subchapter C, 26 U.S.C. \u00a7\n6221 et seq., of Chapter 63 of Subtitle F of the Internal Revenue Code that\nresults in federal adjustments.\n\t\t“Pass-through entity” means any pass-through entity as defined in\n\u00a7 58.1-390.1, other than a partnership as defined in this section.\n\t\t“Resident” means, with respect to an individual partner, that such\npartner is a resident, as defined in \u00a7 58.1-302, for the relevant tax period.\n“Resident” means, with respect to an estate or trust partner, that\nsuch partner is a resident estate or trust, as defined in \u00a7 58.1-302, for the\nrelevant tax period.\n\t\t“Reviewed year” means the taxable year of a partnership that is\nsubject to a partnership-level audit from which federal adjustments arise.\n\t\t“State partnership representative” means the person identified as\nthe representative of a partnership pursuant to the provisions of \u00a7 58.1-398.\n\t\t“Tiered partner” means any partner that is a partnership or a\npass-through entity and is not an individual.\n\t\t“Unrelated business taxable income” has the same meaning as such\nterm is defined in \u00a7 512 of the Internal Revenue Code.\n\nHISTORY: 2020, c. 1030.","edition":{"id":1,"name":"2025","slug":"2025","date_created":"2026-06-21 22:39:22","date_modified":"2026-06-21 22:39:22","current":1,"order_by":1,"last_import":null}}