Tax Type
Individual Income Tax
Partnerships
Description
Partnership; Unified return
Topic
Partnerships
Date Issued
07-06-1988
July 6, 1988
Re: Ruling Request - Unified Return
Individual Income Tax
Dear***********
This is in reply to your letter of December 16, 1987 in which you request permission to make two modifications to the conditions set forth in my letter of May 13, 1987 granting permission for ************** (Partnership) to file a unified nonresident individual income tax return on behalf of its partners. First, you would like permission to submit the supporting documentation for the unified return on either magnetic tape or on microfiche. Secondly, you would like permission to include trusts in the unified return.
After reviewing the summary of the specifications and the format of the tape that you propose to provide to the department, we have determined that we would prefer to have the information submitted on microfiche. As noted in your letter, a written summary of this information must be typed on the unified return form filed.
The department's ruling letter of May 13, 1987 required that only nonresident individual partners be included in the unified filing. You request that the department modify that ruling to allow the inclusion of nonresident trusts in this unified filing. Based upon the circumstances presented in your letter, this request is granted.
However, as discussed in your June 28, 1988 telephone conversation with a member of the department's Tax Policy Division, it must be noted that the inclusion of a trust in a Virginia unified filing would result in some instances in the partnership's Virginia source income being taxed twice - once at the partnership level and again at the beneficiary level. Typically, this would occur when a beneficiary of a nonresident trust is a Virginia resident or a nonresident who has other income from Virginia sources.
Sincerely,
W. H. Forst
Tax Commissioner
Rulings of the Tax Commissioner