Tax Type
Individual Income Tax
Description
Residency
Topic
Residency
Taxpayers
Date Issued
01-08-1991
January 8, 1991
Re: Request for Ruling: Individual Income Tax
Dear********
This will reply to your letter of November 5. l 990 requesting. on behalf of the above-referenced taxpayers. two rulings from the Commonwealth of Virginia:
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- 1) Based on the facts and circumstances presented. the taxpayers will not be taxed as residents of Virginia in taxable years 1990 or 1991.
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- 2) The taxpayers may provide a Virginia employer with authority from the Commissioner to withhold tax not to exceed the estimated liability on the portion of the taxpayers' earnings that will be taxable by Virginia as nonresident income.
FACTS
The taxpayers, a married couple, have been domiciled in Connecticut since July 1986. The husband is a high level executive of a major corporation which moved its headquarters from New York to Virginia in 1990.
The taxpayers will rent a townhouse in Virginia during 1990 and 1991. and have entered into an 18 -month lease. However, their primary residence will remain in Connecticut for the foreseeable future. They will continue to vote in the State of Connecticut and both expect to be at their residence in Connecticut most holidays. weekends and vacations. They will own a car for use while in Virginia but they will maintain their Connecticut drivers' licenses and will own an automobile that is registered in and located in Connecticut. The bulk of their personal property will remain in their Connecticut residence. Aside from a checking account for convenience. their intangible assets will remain in brokerage accounts outside of Virginia and they will maintain banking relationships in Connecticut. The taxpayers do not anticipate that they will be physically present in Virginia for more than 183 days for either 1990 or 1991, and they do not intend to establish a Virginia domicile.
RULING
Two recent rulings of the Commissioner. P.D. 90-197 and P.D. 198 have addressed almost identical facts. These rulings are enclosed for your review.
Based upon the information that you have supplied in your letter. it appears that the taxpayers will continue to actively maintain their domicile in Connecticut during taxable years 1990 and 1991. As Individuals who maintain a place of abode in Virginia for fewer than 183 days during the taxable year. and who are domiciled in a jurisdiction other than Virginia. the taxpayers will be considered nonresidents. and as such. are only required to file a return in Virginia if they have income from Virginia sources. However. if in actuality. the taxpayers maintain a place of abode in Virginia for more than 183 days. they will be subject to the Virginia individual income tax as actual residents. (See VR 630-2-332. copy enclosed. )
Because you have demonstrated that limiting the number of Virginia withholding exemption allowances to the number of exemptions for which the taxpayers qualify for federal income tax purposes. would result in a substantial overpayment. pursuant to VR 630-6-470(A). I will allow the taxpayer to take additional allowances such that total withholding for 1990 will not exceed their estimated 199 l Virginia income tax liability. However. the taxpayers should be advised that in the case of an underpayment of the withholding tax. an addition to tax may be due from the taxpayer .
I hope that the foregoing has answered your inquiries, however. if you need any further information, please contact the department.
Sincerely,
W. H. Forst
Tax Commissioner
Rulings of the Tax Commissioner