                                 CODE OF VIRGINIA

FILING OF ESTIMATED TAX BY NONRESIDENTS UPON THE SALE OF REAL PROPERTY;
PENALTIES (§ 58.1-317)

A. Notwithstanding any other provision of this chapter, every nonresident payee
receiving payments from the transfer of fee simple title in real property in
this Commonwealth shall concurrent with the transfer of title register with the
Department of Taxation pursuant to forms and regulations adopted by the Tax
Commissioner.

B. The real estate reporting person as defined in &#xA7; 6045(e) of the Internal
Revenue Code and the regulations thereunder shall obtain from the nonresident
payee the registration form required in subsection A of this section. The real
estate reporting person shall retain a copy of the registration form in his
files and shall transmit the original copy to the Department of Taxation on or
before the fifteenth day of the month following the month in which the title was
transferred. As prescribed by the Tax Commissioner, a payee may be excused from
the filing of a registration form by furnishing the real estate reporting person
with a certificate stating that the payment is not subject to the corporation or
individual income tax.

C. If a nonresident payee fails to provide a completed registration form to the
real estate reporting person or if such payee provides the real estate reporting
person with a registration form that is incomplete or false on its face, the
real estate reporting person shall file a registration form on behalf of the
payee providing the payee&#8217;s name, address, taxpayer identification number,
and such other information as may be required by the Tax Commissioner. In the
case of each failure to file a registration form with the Tax Commissioner on
the date prescribed therefor, the real estate reporting person failing to file
such registration form shall pay a $50 penalty for each month that each such
failure to file continues, not exceeding six months in the aggregate.

D. Any payee who willfully supplies false or fraudulent information to a real
estate reporting person with the intent to evade the payment of income taxes
properly due on the transfer of fee simple title to real estate in this
Commonwealth and any real estate reporting person who has actual knowledge that
any information supplied by a payee is false or fraudulent and fails to notify
the Department of Taxation of such shall be guilty of a Class 1 misdemeanor.

E. For purposes of this section, the term &#8220;nonresident payee&#8221; means
every individual who is not a resident, every nonresident estate or trust, every
partnership and S corporation which has nonresident partners or shareholders, or
every corporation which is not formed or organized under Virginia law.

HISTORY: 1990, c. 910.