                                 CODE OF VIRGINIA

PASS-THROUGH ENTITY ITEMS (§ 58.1-394.3)

A. The period for assessing any tax imposed by this chapter that is attributable
to any pass-through entity item with respect to any owner of a pass-through
entity shall not expire before the date that is three years after the later of
(i) the last day for filing the pass-through entity return for the taxable year
of the pass-through entity, as extended, or (ii) the date on which the
pass-through entity return for such taxable year was filed.

B. The period for assessing any tax, as provided in subsection A, may be
extended pursuant to agreement under &#xA7; 58.1-101 or 58.1-220 between the
Department and the owner who signed the pass-through entity return or any other
owner or person authorized to sign the pass-through entity return.

C. The Tax Commissioner shall mail to each owner whose name and address have
been provided by the pass-through entity notice of the beginning of an
administrative proceeding at the pass-through entity level with respect to a
pass-through entity item, and the final pass-through entity administrative
adjustment resulting from any such proceeding. The Tax Commissioner shall not be
required to mail notices to any owner with less than a one-percent interest in
the profits of the pass-through entity if such entity has more than 100 owners.

D. In any administrative proceeding under &#xA7; 58.1-1821 in which the taxation
of pass-through entity items is an issue, the pass-through entity shall be
permitted to participate in the proceeding. In addition, the Department may
consolidate proceedings involving more than one taxpayer when the same
pass-through items are in issue.

E. The provisions of this section shall apply to any tax attributable to items
of income, gain, loss, deduction, credit, or other tax attribute that is
recognized or reportable by the pass-through entity and that is required to be
reported by the owner of the pass-through entity pursuant to &#xA7; 58.1-391 or
other sections of this chapter.

HISTORY: 2008, c. 549.