Tax Type
Individual Income Tax
Description
Nonresident shareholders
Topic
Returns and Payments
Date Issued
08-26-1985
August 26, 1985
Re: Ruling Request: Nonresident Shareholders
Dear ****
This is in reply to your letter of July 17, 1985 in which you correct the information that you provided in your original ruling request of May 6, 1985. You now report that ********(hereinafter referred to as Corporation) has four shareholders instead of three.
The number of shareholders was not the critical, determinative factor in the department's ruling of June 18, 1985. As long as each nonresident shareholder meets the following conditions, the ruling of June 18, 1985 will be valid:
If any of the above conditions or the conditions in the department's ruling of June 18, 1985 are not met, the authorization to file a unified nonresident individual income tax return will be revoked. In that case each nonresident shareholder having taxable income must file a Virginia return for the taxable year, unless the individual meets the "$3,000.00 filing exception" described in Virginia Code Section 58.1-321. Failure to file an individual nonresident return would subject the nonresident shareholder to penalty and interest, which could not be mitigated by the fact that a unified filing had been made unless the unified filing was in accordance with the conditions set forth above.
Sincerely,
W. H. Forst
Tax Commissioner
Re: Ruling Request: Nonresident Shareholders
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- Individual Income Tax
Dear ****
This is in reply to your letter of July 17, 1985 in which you correct the information that you provided in your original ruling request of May 6, 1985. You now report that ********(hereinafter referred to as Corporation) has four shareholders instead of three.
The number of shareholders was not the critical, determinative factor in the department's ruling of June 18, 1985. As long as each nonresident shareholder meets the following conditions, the ruling of June 18, 1985 will be valid:
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- 1. Each nonresident shareholder must have the same taxable year.
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- 2. Each nonresident shareholder has no income from Virginia sources other than his share of taxable income from Corporation attributable to Virginia sources.
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- 3. All nonresident shareholders must elect to join in the filing of the unified nonresident individual income tax return and a statement to such effect will be included in the return.
If any of the above conditions or the conditions in the department's ruling of June 18, 1985 are not met, the authorization to file a unified nonresident individual income tax return will be revoked. In that case each nonresident shareholder having taxable income must file a Virginia return for the taxable year, unless the individual meets the "$3,000.00 filing exception" described in Virginia Code Section 58.1-321. Failure to file an individual nonresident return would subject the nonresident shareholder to penalty and interest, which could not be mitigated by the fact that a unified filing had been made unless the unified filing was in accordance with the conditions set forth above.
Sincerely,
W. H. Forst
Tax Commissioner
Rulings of the Tax Commissioner