58.1-394.3 - Pass-through entity items. - Virginia Statutes

§ 58.1-394.3. Pass-through entity items.

A. The period for assessing any tax imposed by this chapter that isattributable to any pass-through entity item with respect to any owner of apass-through entity shall not expire before the date that is three yearsafter the later of (i) the last day for filing the pass-through entity returnfor the taxable year of the pass-through entity, as extended, or (ii) thedate 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 beextended pursuant to agreement under § 58.1-101 or 58.1-220 between theDepartment and the owner who signed the pass-through entity return or anyother owner or person authorized to sign the pass-through entity return.

C. The Tax Commissioner shall mail to each owner whose name and address havebeen provided by the pass-through entity notice of the beginning of anadministrative proceeding at the pass-through entity level with respect to apass-through entity item, and the final pass-through entity administrativeadjustment resulting from any such proceeding. The Tax Commissioner shall notbe required to mail notices to any owner with less than a one-percentinterest in the profits of the pass-through entity if such entity has morethan 100 owners.

D. In any administrative proceeding under § 58.1-1821 in which the taxationof pass-through entity items is an issue, the pass-through entity shall bepermitted to participate in the proceeding. In addition, the Department mayconsolidate proceedings involving more than one taxpayer when the samepass-through items are in issue.

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

(2008, c. 549.)