{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/58.1-399.7.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/58.1-399.7.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/58.1-399.7.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/58.1-399.7.html"}],"law_id":72733,"edition_id":1,"section_id":72733,"structure_id":15666,"section_number":"58.1-399.7","catch_line":"Administration","history":"2020, c. 1030.","full_text":"A\n\nFor partners and partnerships subject to the provisions of this article, the Department shall assess, collect from, and refund any Virginia income tax, interest, and penalties arising from final federal adjustments as set forth in this article. If any partner or partnership makes an election pursuant to § 58.1-399.1, the Department shall assess and collect in-lieu-of amounts, interest, and penalties arising from final federal adjustments as if the in-lieu-of-amounts are a corporate income tax imposed pursuant to the provisions of Article 10 (§ 58.1-400 et seq.). Penalties and interest imposed on a partner or partnership shall be determined based on the date the partnership return for the reviewed year originally was due. If any partner or partnership subject to § 58.1-399 fails to file its federal adjustments report within the time required, the provisions of § 58.1-394.1 shall be applicable to such report, mutatis mutandis.B\n\nNotwithstanding the provisions of subsection C of \u00a7 58.1-312 and clause (ii) of \u00a7 58.1-1823, an assessment shall be issued and an amended return for refund shall be filed by the following dates:1\n\nIf a partner or partnership files with the Department a federal adjustments report or an amended Virginia tax return within the time period specified in § 58.1-399, or § 58.399.1, as applicable, the Department may assess any amounts, including taxes, in-lieu-of-amounts, interest, and penalties arising from those federal adjustments, if the Department issues a notice of assessment to the partner or partnership no later than the expiration of the one-year period following the date of filing with the Department of the federal adjustments report.2\n\nIf a partner or partnership fails to file the federal adjustments report within the time period specified in § 58.1-399, or § 58.399.1, as applicable, or if the federal adjustments report filed by the partner or partnership omits final federal adjustments or understates the correct amount of tax owed, the Department may assess amounts or additional amounts including taxes, in-lieu-of-amounts, interest, and penalties arising from the final federal adjustments, if the Department issues a notice of assessment to the partner or partnership no later than the expiration of the one-year period following the date of filing with the Department of the federal adjustments report.3\n\nAn amended return for refund arising from federal adjustments made by the Internal Revenue Service shall be filed no later than one year from the date a federal adjustments report, as required by § 58.1-399, or § 58.399.1, as applicable, was due to the Department, including any extensions issued pursuant to the provisions of this section. The partner or partnership may, on the federal adjustments report, report additional tax due, report a claim for refund or credit of a tax, and make any other adjustments resulting from adjustments to the partner’s or partnership’s federal taxable income, including adjustments to its net operating losses.4\n\nUnless otherwise agreed to in writing by the partnership or partner and the Department, any adjustments by the Department or by the partner or partnership that are made pursuant to the one-year statute of limitations provided for in this subsection are limited to adjustments to the partner’s or partnership’s tax liability that arise from federal adjustments.C\n\nThe one-year statute of limitations provided for in subsection B may be extended:1\n\nAutomatically, upon written notice to the Department, by 60 days for an audited partnership or a tiered partner that has 10,000 or more direct partners; or2\n\nBy written agreement between the partnership or partner and the Department pursuant to § 58.1-101.D\n\n1. Any extension granted pursuant to subsection C shall extend by an equal time period the last day for the Department to assess any additional amounts arising from the adjustments to federal taxable income and the period for filing a claim for refund or credit of taxes.2\n\nThe one-year statute of limitations provided for in subsection B shall not affect the time within which or the amount for which an assessment may otherwise be made or a refund sought under this title.","order_by":null,"text":{"0":{"id":261978,"text":"For partners and partnerships subject to the provisions of this article, the Department shall assess, collect from, and refund any Virginia income tax, interest, and penalties arising from final federal adjustments as set forth in this article. If any partner or partnership makes an election pursuant to § 58.1-399.1, the Department shall assess and collect in-lieu-of amounts, interest, and penalties arising from final federal adjustments as if the in-lieu-of-amounts are a corporate income tax imposed pursuant to the provisions of Article 10 (§ 58.1-400 et seq.). Penalties and interest imposed on a partner or partnership shall be determined based on the date the partnership return for the reviewed year originally was due. If any partner or partnership subject to § 58.1-399 fails to file its federal adjustments report within the time required, the provisions of § 58.1-394.1 shall be applicable to such report, mutatis mutandis.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":261979,"text":"Notwithstanding the provisions of subsection C of \u00a7 58.1-312 and clause (ii) of \u00a7 58.1-1823, an assessment shall be issued and an amended return for refund shall be filed by the following dates:","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"B1"},"2":{"id":261980,"text":"If a partner or partnership files with the Department a federal adjustments report or an amended Virginia tax return within the time period specified in § 58.1-399, or § 58.399.1, as applicable, the Department may assess any amounts, including taxes, in-lieu-of-amounts, interest, and penalties arising from those federal adjustments, if the Department issues a notice of assessment to the partner or partnership no later than the expiration of the one-year period following the date of filing with the Department of the federal adjustments report.","type":"section","prefixes":["B","1"],"prefix":"1","entire_prefix":"B1","prefix_anchor":"B1","level":2,"prior_prefix":"B","next_prefix":"B2"},"3":{"id":261981,"text":"If a partner or partnership fails to file the federal adjustments report within the time period specified in § 58.1-399, or § 58.399.1, as applicable, or if the federal adjustments report filed by the partner or partnership omits final federal adjustments or understates the correct amount of tax owed, the Department may assess amounts or additional amounts including taxes, in-lieu-of-amounts, interest, and penalties arising from the final federal adjustments, if the Department issues a notice of assessment to the partner or partnership no later than the expiration of the one-year period following the date of filing with the Department of the federal adjustments report.","type":"section","prefixes":["B","2"],"prefix":"2","entire_prefix":"B2","prefix_anchor":"B2","level":2,"prior_prefix":"B1","next_prefix":"B3"},"4":{"id":261982,"text":"An amended return for refund arising from federal adjustments made by the Internal Revenue Service shall be filed no later than one year from the date a federal adjustments report, as required by § 58.1-399, or § 58.399.1, as applicable, was due to the Department, including any extensions issued pursuant to the provisions of this section. The partner or partnership may, on the federal adjustments report, report additional tax due, report a claim for refund or credit of a tax, and make any other adjustments resulting from adjustments to the partner’s or partnership’s federal taxable income, including adjustments to its net operating losses.","type":"section","prefixes":["B","3"],"prefix":"3","entire_prefix":"B3","prefix_anchor":"B3","level":2,"prior_prefix":"B2","next_prefix":"B4"},"5":{"id":261983,"text":"Unless otherwise agreed to in writing by the partnership or partner and the Department, any adjustments by the Department or by the partner or partnership that are made pursuant to the one-year statute of limitations provided for in this subsection are limited to adjustments to the partner’s or partnership’s tax liability that arise from federal adjustments.","type":"section","prefixes":["B","4"],"prefix":"4","entire_prefix":"B4","prefix_anchor":"B4","level":2,"prior_prefix":"B3","next_prefix":"C"},"6":{"id":261984,"text":"The one-year statute of limitations provided for in subsection B may be extended:","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B4","next_prefix":"C1"},"7":{"id":261985,"text":"Automatically, upon written notice to the Department, by 60 days for an audited partnership or a tiered partner that has 10,000 or more direct partners; or","type":"section","prefixes":["C","1"],"prefix":"1","entire_prefix":"C1","prefix_anchor":"C1","level":2,"prior_prefix":"C","next_prefix":"C2"},"8":{"id":261986,"text":"By written agreement between the partnership or partner and the Department pursuant to § 58.1-101.","type":"section","prefixes":["C","2"],"prefix":"2","entire_prefix":"C2","prefix_anchor":"C2","level":2,"prior_prefix":"C1","next_prefix":"D"},"9":{"id":261987,"text":"1. Any extension granted pursuant to subsection C shall extend by an equal time period the last day for the Department to assess any additional amounts arising from the adjustments to federal taxable income and the period for filing a claim for refund or credit of taxes.","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C2","next_prefix":"D2"},"10":{"id":261988,"text":"The one-year statute of limitations provided for in subsection B shall not affect the time within which or the amount for which an assessment may otherwise be made or a refund sought under this title.","type":"section","prefixes":["D","2"],"prefix":"2","entire_prefix":"D2","prefix_anchor":"D2","level":2,"prior_prefix":"D"}},"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}],"previous_section":{"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},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/58.1-399.7\/","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":false,"refers_to":[{"id":64280,"section_number":"58.1-1823","catch_line":"Reassessment and refund upon the filing of amended return or the payment of an assessment","order_by":null,"url":"\/58.1-1823\/"},{"id":59212,"section_number":"58.1-312","catch_line":"Limitations on assessment","order_by":null,"url":"\/58.1-312\/"},{"id":63527,"section_number":"58.1-394.1","catch_line":"Failure of pass-through entity to make a return","order_by":null,"url":"\/58.1-394.1\/"},{"id":74602,"section_number":"58.1-399","catch_line":"Reporting and payment requirements for a partnership subject to a final federal adjustment","order_by":null,"url":"\/58.1-399\/"},{"id":79092,"section_number":"58.1-399.1","catch_line":"Elective payment by a partnership","order_by":null,"url":"\/58.1-399.1\/"},{"id":60955,"section_number":"58.1-400","catch_line":"Imposition of tax","order_by":null,"url":"\/58.1-400\/"}],"permalink":{"id":254539,"object_type":"law","relational_id":72733,"identifier":"58.1-399.7","token":"58.1\/I\/3\/9.1\/58.1-399.7","url":"\/58.1-399.7\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/58.1-399.7\/","token":"58.1\/I\/3\/9.1\/58.1-399.7","dublin_core":{"Title":"Administration","Type":"Text","Format":"text\/html","Identifier":"\u00a7 58.1-399.7","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> For partners<\/span> and partnerships<\/span> subject to the provisions of this article, the Department<\/span> shall assess, collect from, and refund any Virginia income tax, interest, and penalties arising from final federal adjustments<\/span> as set forth in this article. If any partner<\/span> or partnership<\/span> makes an election pursuant to § 58.1-399.1<\/a>, the Department<\/span> shall assess and collect in-lieu-of amounts, interest, and penalties arising from final federal adjustments<\/span> as if the in-lieu-of-amounts are a corporate income tax imposed pursuant to the provisions of Article 10 (§ 58.1-400<\/a> et seq.). Penalties and interest imposed on a partner<\/span> or partnership<\/span> shall be determined based on the date the partnership<\/span> return for the reviewed year<\/span> originally was due. If any partner<\/span> or partnership<\/span> subject to § 58.1-399<\/a> fails to file its federal adjustments report<\/span> within the time required, the provisions of § 58.1-394.1<\/a> shall be applicable to such report, mutatis mutandis<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> Notwithstanding the provisions of subsection C of \u00a7 58.1-312<\/a> and clause (ii) of \u00a7 58.1-1823<\/a>, an assessment shall be issued and an amended return for refund shall be filed by the following dates: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> If a partner<\/span> or partnership<\/span> files with the Department<\/span> a federal adjustments report<\/span> or an amended Virginia tax return within the time period specified in § 58.1-399<\/a>, or § 58.399.1, as applicable, the Department<\/span> may assess any amounts, including taxes, in-lieu-of-amounts, interest, and penalties arising from those federal adjustments, if the Department<\/span> issues<\/span> a notice of assessment to the partner<\/span> or partnership<\/span> no later than the expiration of the one-year period following the date of filing with the Department<\/span> of the federal adjustments report<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> If a partner<\/span> or partnership<\/span> fails to file the federal adjustments report<\/span> within the time period specified in § 58.1-399<\/a>, or § 58.399.1, as applicable, or if the federal adjustments report<\/span> filed by the partner<\/span> or partnership<\/span> omits final federal adjustments<\/span> or understates the correct amount of tax owed, the Department<\/span> may assess amounts or additional amounts including taxes, in-lieu-of-amounts, interest, and penalties arising from the final federal adjustments<\/span>, if the Department<\/span> issues<\/span> a notice of assessment to the partner<\/span> or partnership<\/span> no later than the expiration of the one-year period following the date of filing with the Department<\/span> of the federal adjustments report<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> An amended return for refund arising from federal adjustments made by the Internal Revenue Service shall be filed no later than one year from the date a federal adjustments report<\/span>, as required by § 58.1-399<\/a>, or § 58.399.1, as applicable, was due to the Department<\/span>, including any extensions issued pursuant to the provisions of this section. The partner<\/span> or partnership<\/span> may, on the federal adjustments report<\/span>, report additional tax due, report a claim for refund or credit of a tax, and make any other adjustments resulting from adjustments to the partner<\/span>’s or partnership<\/span>’s federal taxable income, including adjustments to its net operating losses. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> Unless otherwise agreed to in writing by the partnership<\/span> or partner<\/span> and the Department<\/span>, any adjustments by the Department<\/span> or by the partner<\/span> or partnership<\/span> that are made pursuant to the one-year statute of limitations<\/span> provided for in this subsection are limited to adjustments to the partner<\/span>’s or partnership<\/span>’s tax liability that arise from federal adjustments. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> The one-year statute of limitations<\/span> provided for in subsection B may be extended: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> Automatically, upon written notice to the Department<\/span>, by 60 days for an audited partnership<\/span> or a tiered partner<\/span> that has 10,000 or more direct partners<\/span>; or <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> By written agreement between the partnership or partner and the Department<\/span> pursuant to § 58.1-101<\/a>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

D.<\/span> 1. Any extension granted pursuant to subsection C shall extend by an equal time period the last day for the Department<\/span> to assess any additional amounts arising from the adjustments to federal taxable income and the period for filing a claim for refund or credit of taxes. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> The one-year statute of limitations<\/span> provided for in subsection B shall not affect the time within which or the amount for which an assessment may otherwise be made or a refund sought under this title. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nADMINISTRATION (\u00a7 58.1-399.7)\n\nA. For partners and partnerships subject to the provisions of this article, the\nDepartment shall assess, collect from, and refund any Virginia income tax,\ninterest, and penalties arising from final federal adjustments as set forth in\nthis article. If any partner or partnership makes an election pursuant to §\n58.1-399.1, the Department shall assess and collect in-lieu-of amounts,\ninterest, and penalties arising from final federal adjustments as if the\nin-lieu-of-amounts are a corporate income tax imposed pursuant to the provisions\nof Article 10 (§ 58.1-400 et seq.). Penalties and interest imposed on a\npartner or partnership shall be determined based on the date the partnership\nreturn for the reviewed year originally was due. If any partner or partnership\nsubject to § 58.1-399 fails to file its federal adjustments report within\nthe time required, the provisions of § 58.1-394.1 shall be applicable to\nsuch report, mutatis mutandis.\n\nB. Notwithstanding the provisions of subsection C of \u00a7 58.1-312 and clause (ii)\nof \u00a7 58.1-1823, an assessment shall be issued and an amended return for refund\nshall be filed by the following dates:\n\n 1. If a partner or partnership files with the Department a federal adjustments\n report or an amended Virginia tax return within the time period specified in\n § 58.1-399, or § 58.399.1, as applicable, the Department may assess\n any amounts, including taxes, in-lieu-of-amounts, interest, and penalties\n arising from those federal adjustments, if the Department issues a notice of\n assessment to the partner or partnership no later than the expiration of the\n one-year period following the date of filing with the Department of the\n federal adjustments report.\n\n 2. If a partner or partnership fails to file the federal adjustments report\n within the time period specified in § 58.1-399, or § 58.399.1, as\n applicable, or if the federal adjustments report filed by the partner or\n partnership omits final federal adjustments or understates the correct amount\n of tax owed, the Department may assess amounts or additional amounts including\n taxes, in-lieu-of-amounts, interest, and penalties arising from the final\n federal adjustments, if the Department issues a notice of assessment to the\n partner or partnership no later than the expiration of the one-year period\n following the date of filing with the Department of the federal adjustments\n report.\n\n 3. An amended return for refund arising from federal adjustments made by the\n Internal Revenue Service shall be filed no later than one year from the date a\n federal adjustments report, as required by § 58.1-399, or §\n 58.399.1, as applicable, was due to the Department, including any extensions\n issued pursuant to the provisions of this section. The partner or partnership\n may, on the federal adjustments report, report additional tax due, report a\n claim for refund or credit of a tax, and make any other adjustments resulting\n from adjustments to the partner’s or partnership’s federal taxable\n income, including adjustments to its net operating losses.\n\n 4. Unless otherwise agreed to in writing by the partnership or partner and the\n Department, any adjustments by the Department or by the partner or partnership\n that are made pursuant to the one-year statute of limitations provided for in\n this subsection are limited to adjustments to the partner’s or\n partnership’s tax liability that arise from federal adjustments.\n\nC. The one-year statute of limitations provided for in subsection B may be\nextended:\n\n 1. Automatically, upon written notice to the Department, by 60 days for an\n audited partnership or a tiered partner that has 10,000 or more direct\n partners; or\n\n 2. By written agreement between the partnership or partner and the Department\n pursuant to § 58.1-101.\n\nD. 1. Any extension granted pursuant to subsection C shall extend by an equal\ntime period the last day for the Department to assess any additional amounts\narising from the adjustments to federal taxable income and the period for filing\na claim for refund or credit of taxes.\n\n 2. The one-year statute of limitations provided for in subsection B shall not\n affect the time within which or the amount for which an assessment may\n otherwise be made or a refund sought under this title.\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}}