                                 CODE OF VIRGINIA

FAILURE OF PASS-THROUGH ENTITY TO MAKE A RETURN (§ 58.1-394.1)

A. Any pass-through entity that fails to file a return required by this article
within the time required shall be liable for a penalty of $200 if the failure is
for not more than one month, with an additional $200 for each additional month
or fraction thereof during which such failure to file continues, not exceeding
six months in the aggregate. In no case, however, shall the penalty be less than
$200.

B. If any pass-through entity&#8217;s failure to file a return required by this
article exceeds six months, the Department shall assess a penalty of six percent
of the total amount of Virginia taxable income derived by its owners from the
pass-through entity for the taxable year. The Department may determine such
penalty from any information in its possession. The penalty assessed pursuant to
this subsection shall be reduced by the penalty assessed pursuant to subsection
A and any tax paid by the owners on their share of income from the pass-through
entity for the taxable year.

C. The penalties set forth in this subsection shall be assessed and collected by
the Department in the manner provided for the assessment and collection of taxes
under this chapter or in a civil action, at the instance of the Department. In
addition, such pass-through entity shall be compellable by mandamus to file such
return.

HISTORY: 2004, Sp. Sess. I, c. 3.