As used in this article, unless the context requires otherwise: “Administrative adjustment request” means an administrative adjustment request filed by a partnership pursuant to § 6227 of the Internal Revenue Code. “Audited partnership” means a partnership subject to a partnership-level audit that results in a federal adjustment. “Corporate partner” means a partner that is subject to tax under Article 10 (§ 58.1-400 et seq.). “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. “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. “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. “Federal adjustments report” means any methods or forms required by the Department for use by a partner or partnership to report final federal adjustments. “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 § 6223(a) of the Internal Revenue Code to act as the federal partnership representative. “Final determination date” means the date determined pursuant to the provisions of § 58.1-311.2. “Final federal adjustment” means a federal adjustment for which the final determination date has passed. “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. “Nonresident” means, with respect to an individual, estate, or trust partner, that such partner is not a resident partner. “Partner” means a person that holds an interest directly or indirectly in a partnership or pass-through entity. “Partnership” means an entity subject to taxation under Subchapter K, 26 U.S.C. § 701 et seq., of Chapter 1 of Subtitle A of the Internal Revenue Code. “Partnership-level audit” means an examination by the Internal Revenue Service at the partnership level pursuant to Subchapter C, 26 U.S.C. § 6221 et seq., of Chapter 63 of Subtitle F of the Internal Revenue Code that results in federal adjustments. “Pass-through entity” means any pass-through entity as defined in § 58.1-390.1, other than a partnership as defined in this section. “Resident” means, with respect to an individual partner, that such partner is a resident, as defined in § 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 § 58.1-302, for the relevant tax period. “Reviewed year” means the taxable year of a partnership that is subject to a partnership-level audit from which federal adjustments arise. “State partnership representative” means the person identified as the representative of a partnership pursuant to the provisions of § 58.1-398. “Tiered partner” means any partner that is a partnership or a pass-through entity and is not an individual. “Unrelated business taxable income” has the same meaning as such term is defined in § 512 of the Internal Revenue Code.