                                 CODE OF VIRGINIA

DEFINITIONS (§ 58.1-396)

As used in this article, unless the context requires otherwise:
		&#8220;Administrative adjustment request&#8221; means an administrative
adjustment request filed by a partnership pursuant to § 6227 of the Internal
Revenue Code.
		&#8220;Audited partnership&#8221; means a partnership subject to a
partnership-level audit that results in a federal adjustment.
		&#8220;Corporate partner&#8221; means a partner that is subject to tax under
Article 10 (§ 58.1-400 et seq.).
		&#8220;Direct&#8221; 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.
		&#8220;Exempt&#8221; 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.
		&#8220;Federal adjustment&#8221; 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.
		&#8220;Federal adjustments report&#8221; means any methods or forms required
by the Department for use by a partner or partnership to report final federal
adjustments.
		&#8220;Federal partnership representative&#8221; 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.
		&#8220;Final determination date&#8221; means the date determined pursuant to
the provisions of § 58.1-311.2.
		&#8220;Final federal adjustment&#8221; means a federal adjustment for which
the final determination date has passed.
		&#8220;Indirect&#8221; 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.
		&#8220;Nonresident&#8221; means, with respect to an individual, estate, or
trust partner, that such partner is not a resident partner.
		&#8220;Partner&#8221; means a person that holds an interest directly or
indirectly in a partnership or pass-through entity.
		&#8220;Partnership&#8221; 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.
		&#8220;Partnership-level audit&#8221; 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.
		&#8220;Pass-through entity&#8221; means any pass-through entity as defined in
§ 58.1-390.1, other than a partnership as defined in this section.
		&#8220;Resident&#8221; means, with respect to an individual partner, that such
partner is a resident, as defined in § 58.1-302, for the relevant tax period.
&#8220;Resident&#8221; 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.
		&#8220;Reviewed year&#8221; means the taxable year of a partnership that is
subject to a partnership-level audit from which federal adjustments arise.
		&#8220;State partnership representative&#8221; means the person identified as
the representative of a partnership pursuant to the provisions of § 58.1-398.
		&#8220;Tiered partner&#8221; means any partner that is a partnership or a
pass-through entity and is not an individual.
		&#8220;Unrelated business taxable income&#8221; has the same meaning as such
term is defined in § 512 of the Internal Revenue Code.

HISTORY: 2020, c. 1030.