Instructions for Filing Unified Nonresident Individual Income Tax … · 2019. 5. 29. ·...
Transcript of Instructions for Filing Unified Nonresident Individual Income Tax … · 2019. 5. 29. ·...
Explanation of Forms• Every pass-through entity (PTE) doing business inVirginia or having income from Virginia sources isrequiredtofileareturnofincomeforeachtaxableyearwiththeDepartmentofTaxation.ThisisdoneontheForm502.TheForm502isnotoptional.ItmustbefiledbyeveryPTEdoingbusinessinVirginiaorhavingincomefromVirginiasources.
• EffectiveJanuary1,2008,everyPTEdoingbusinessinVirginiaorhavingincomefromVirginiasourcesisrequiredtopayawithholdingtaxequaltofivepercentofitsnonresidentowners’sharesofincomefromVirginiasources.ThistaxisreportedontheForm502W.PleaseseetheForm502WInstructionsformoreinformation.
•When a PTE is required to file aVirginia return ofincome, the owners of the entitywill usually have aVirginiafilingrequirementalso.ForownerswhoarenotresidentsofVirginia,filingmaybesimplifiedthroughthe use of the Form 765. Form 765 is an optionalunifiedreturnthatisfiledbythePTEonbehalfofitsqualifiednonresidentowners.Theseownersaretherebyrelievedoftherequirementthateachfileareturnandpaytaxseparately.ThePTEisnotrequiredtopaythewithholdingtaxfornonresidentownerswhoareincludedontheForm765.
Who May FileApartnership,SCorporation,orotherPTEthattransactsbusiness inVirginia and has two ormore nonresidentindividualownersmayfileaunifiednonresidentindividualincometaxreturn(unifiedreturn)onbehalfofallofitsqualified nonresident individual owners (participants)providedcertainconditionsaremet.Inaddition,certainestatesandtrustswhichqualifyandhaveincomepassedthrough to their nonresident beneficiariesmay elect tofile a unified return.These filerswill complete Form765inasimilarmannerasaPTEfiler.AunifiedreturnisanalternativetothefilingofanonresidentindividualincometaxreturnbyeachnonresidentindividualownerofthePTE.TheunifiedreturnisfiledinthenameofthePTE,usingthePTE’sfederalemployeridentificationnumber(FEIN)andVirginia account number. An owner, officer or
2011 Virginia Form 765InstructionsforFiling
UnifiedNonresidentIndividualIncomeTaxReturn
GENERAL INSTRUCTIONS
employeeofthePTEwhoisauthorizedtoactonbehalfofthePTEintaxmatters(authorizedrepresentative)mustsigntheunifiedreturn.Bysigningthereturn,thesignerisdeclaringthatheorsheistheauthorizedrepresentativeofthePTEandthateachparticipanthassignedaconsentformauthorizingthePTEtoactontheparticipant’sbehalfin thematter of unified returns and acknowledging theparticipant’sunderstandingandacceptanceofallof thetermsandconditionsofparticipationinaunifiedreturnasdescribedintheseinstructions.TheconsentformmustcontinueinforceindefinitelyuntilrevokedinwritingbytheparticipantandmustpermitthePTEtofileamendmentsortakeotheractionsconcerningtheunifiedreturnwithoutadditionalauthorizationfromtheparticipant.TheconsentformsmustbemaintainedbythePTEandprovidedtotheVirginiaDepartment ofTaxation (theDepartment) forinspectionupondemand.Allownersof thePTEwhoqualify toparticipatemustparticipate in the unified return, if the unifiedfiling iselected. If anyqualifiedownerdeclines toparticipate,theotherqualifiedownersmaynotfileaunifiedreturn.By filing a unified return, the participants join in acollective return,which is prepared and submitted bythePTEonbehalfoftheparticipants.TheunifiedreturnsatisfiestherequirementthateachparticipantfileaseparateVirginia nonresident individual income tax returnwithrespecttothePTEincome,butitdoesnottransformthePTEintoataxableentityortransferthetaxliabilityoftheparticipantstothePTE.AunifiedreturnmaybefiledwithoutpriorapprovalfromtheDepartment provided thePTE and the participantsagree to complywith theDepartment’s rulesdescribedintheseinstructions.Ifalloftherulesdescribedintheseinstructionscannotbemet,thePTEmustreceivewrittenapprovalfromtheTaxCommissionerbeforesubmittingaunifiedreturn.Allrequestsmustbesubmittedinwritingto:
Tax CommissionerVirginia Department of TaxationP.O. Box 2475Richmond, VA 23218-2475
TheDepartmentmaydenyanyPTEpermissiontofilea
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unifiedreturn. Inaddition, theDepartmentmayrefuseacceptance of any unified return not filed in a timelymanner or in accordancewith the prescribed rules andprocedures. Insuchcases, theDepartmentwillrequireeach owner to file his or her own separate return inaccordancewithVirginialawandregulations.
Who Qualifies to ParticipateAqualifiedownerisanaturalpersonwhois:1. AdirectownerofthePTEfilingthereturn;and2. AnonresidentofVirginiawithVirginiasourceincome
forthetaxableyearfromthePTEfilingthereturn.IfanindividualnonresidentownerhasotherincomefromVirginiasourcesinadditiontoPTEincome,heorshemustfileaNonresidentIndividualIncomeTaxReturn(Form763)toaccountforthatincome.TheindividualmaydeductincomereportedonForm765.
If thePTEfilesaunifiedreturn,allownersof thePTEwhomeetbothconditionslistedabovemustparticipateintheunifiedreturn.
How Taxable Income and Amount of Tax are DeterminedFor the unified return,Virginia taxable income is theaggregateofeachparticipant’sincomefromthePTE,asallocated and apportioned toVirginia, adjusted by anymodificationsapplicabletoVirginiaindividualincometax,withoutbenefitofanypersonalexemptionsoritemizedorstandarddeductions.Virginiataxableincomecannotbe reducedbycarryovers fromanyother taxableyearsorreturnsofthePTEoranyparticipantfornetoperatinglosses, charitable contributions, InternalRevenueCode§179expenses,orotherdeductions.Inaddition,Virginiataxable income cannot be reduced by deductions orsubtractions normay any tax be offset by credits thatdid notflow through from thePTE to the participants.OnlyVirginiamodifications and credits reported ontheparticipants’SchedulesVK-1 that are applicable toindividual income taxmay be claimed on the unifiedreturn.AlthoughVirginiacreditsmaynotbecarriedovertoothertaxableyearsonthePTE’sreturn(Form502),theownersmaybeabletocarryoverunusedcreditsontheirVirginiareturns. Refer to the section titledWhat Forms and Schedules to Use for instructionsonclaimingVirginiacreditsandcarryovercreditsontheunifiedreturn.TheamountoftaxiscomputedontheVirginiaTaxableIncomebyapplyingthetaxratesforindividualincometaxspecifiedinVa.Code §58.1-320orbyreferencetothetaxtablespublishedbytheDepartment,withoutregardtothenumberofparticipants.
NOTE:TheunifiedreturnisanoptiontheDepartmentprovidestoqualifyingnonresidentindividualownersofaPTEtosimplifythereturnfilingprocess.ItsusemayresultinthelossofcertainbenefitsandtaxadvantagesavailabletononresidentindividualsfilingseparateVirginiareturns.Inaddition,theamountoftaxcomputedonaunifiedfilingbasismayexceed theaggregateof theparticipants’ taxliabilitieshadeachparticipantfiledhisorherownreturn.ThequalifyingownersofeachPTEmustdecidewhethertofileaunifiedreturn.Iftheunifiedreturnoptionisnotelected, each nonresident owner should consult a taxprofessionaltodetermineifheorsheisrequiredtofileaseparateVirginiareturn.
When the Return is DueIfthePTE’staxableyearis:• Calendar year (January 1 -December 31), then
the unified return for taxable year 2011must bepostmarkednolaterthanMay1,2012,toavoidlatefilingpenaltiesandinterest;or
• Fiscal year or short year,thentheunifiedreturnisdueonor before the 15thdayof the fourthmonthfollowingthecloseofthePTE’staxableyear.
TheunifiedreturnmustbesubmittedtotheDepartmentatthesametimeorafter thePTEsubmitsitsVirginiareturn(Form502).
Automatic Extension to FileAnautomaticextensionoftimetofileisgrantedtothedatesixmonthsaftersuchduedateor30daysaftertheextendeddateforfilingthefederalincometaxreturn,whicheverislater,providedthefullamountestimatedasthetaxduehasbeenpaidonorbeforetheoriginalduedate.Ifsufficientpaymentshavebeenmade,nofurtheractionisrequiredtoobtaintheextensiontofile.Ifanadditionaltaxpaymentisneededtoensurethetaxliabilityhasbeenpaid,useForm770-IP,VirginiaFiduciaryandUnifiedNonresidentExtensionPayment, to remit the payment.The requestmustbemadeinthenameofthePTE,usingthePTE’sFederalEmployerIdentificationNumber(FEIN).MailForm770-IPto:
Virginia Department of TaxationP.O. Box 760Richmond, VA 23218-0760
FortaxableyearsbeginningonandafterJanuary1,2005,anautomaticsixmonthextensionislikewisegrantedtothePTE(Form502).Penaltiesareassessedforreturnsfiledaftertheextendedduedate.SeetheForm502instructionsforfurtherinformation.
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How to Make Estimated PaymentsThe rules and procedures for payment of estimatedindividual income tax apply to unified returns. UseForm770ES,EstimatedTaxPaymentVoucher,tosubmitestimatedtaxpayments.PaymentsoftheestimatedtaxmustbemadeinthenameofthePTE,usingthePTE’sFEIN.Theestimatedtaxiscomputed using the estimatedVirginia taxable incomefor the unified return,without regard to the number ofparticipants.Estimatedtaxpaidbyaparticipanttohisorherownaccountmaynotbeappliedtoaunifiedreturn,andestimatedtaxpaidbyaPTEforuseonaunifiedreturnmaynotbeappliedtoaparticipant’sindividualaccount.
Where the Department will Mail Refunds, Assessments, and CorrespondenceThe Department will issue correspondence and allassessmentsoftax,penalty,andinterestinthenameofthePTE.AlthoughthePTEisrequiredtomakeallpaymentsoftax,penalty,andinterest,andisauthorizedtoactonthe participants’ behalf, eachparticipant remains liablefor his or her respective share of any tax, penalty andinterestowed.TheDepartmentwillrefundoverpaidtaxtothePTE.
What Forms and Schedules to UseForm765may not be filed unless the entity has alsofiledForm502.Form502isaseparatereturnandnotanattachment.DonotmailForm765withForm502.Aunifiedreturnmustinclude:• A completed and signedVA Form 765, Unified
NonresidentIndividualIncomeTaxReturn;and• AScheduleL,List ofParticipatingOwners,which
includes the name, home address, Social SecurityNumber, allocation percentage and guaranteedpaymentamountofeachparticipant.
ScheduleL canbe substitutedwith an8 1/2”X11”
spreadsheet or word processing document in eitherportraitorlandscapeorientation.Thedocumentshouldbeintableformatandmustcontaingridlines,thesamefour columns and the same information in the sameorder as shownonScheduleL. The substitute formcannotcontainadditionalcolumnsofdata.Theyear,the title “ScheduleL,” thenameof thepass-throughentityandtheFEINofthepass-throughentitymustbeclearlyprintedatthetopofthesubstituteversion.Thedatamustbein10pointfontorlarger.AnexampleofasubstituteScheduleLisprovidedabove.IfanyVirginiacreditsareclaimedontheunifiedreturn,thentheunifiedreturnmustalsoinclude:• AScheduleCR,CreditComputationSchedule;and• Therequiredformsanddocumentation,asdescribedin
theScheduleCRinstructions,foreachcreditclaimed;and
• If any carryover credit is claimed, a reconciliationoftheavailablecarryovercreditaccountingforanychangeintheparticipantsfromtheprioryear.
Credits: Whenclaiminganoriginalcredit,sumthecreditamountallocatedtoeachparticipant(fromtheparticipants’SchedulesVK-1)andenteritontheappropriatelineonScheduleCR. If a credit reported on the participants’SchedulesVK-1isnotlistedontheScheduleCR,itmaynot be used as a credit to lower an individual incometaxliability. Forinstance,acredit limitedbytheCode of Virginia to corporationsmaynot be used to reduceindividualincometax,eitheronaunifiedreturnoronaseparateindividualincometaxreturn.Refundablecreditsmaynotbeclaimedonaunifiedreturn.Creditforincometaxpaidtoanotherstatemaynotbeclaimedonaunifiedreturn.Ifanycreditisunusedandthecreditallowsforcarryover,report the carryover on ScheduleCR.Unused creditsmay be carried over in accordancewith each credit’s
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2011VirginiaScheduleL(Form765)UnifiedNonresidentIncomeTaxReturn
ListofParticipantsNameofPass-ThroughEntity: ______________________________________________________FederalEmployerIDNumber:______________________________________________________
IdentifytheParticipants Column1 Column2 Column3 Column4 SSN Name/Address Allocation% GuaranteedPaymentAmt. 111-22-3344 JohnDoe 10.00% $1.00 123MainStreet Richmond,VA23220
Schedule L Example
specific carryover provisions. If a participantwhodidnotpreviouslyqualifytoparticipateinaunifiedfilinghascarryovercredit,thatparticipant’scarryovercreditmaybeincludedontheunifiedreturn,providedsuchcreditwasoriginallypassedthroughtotheparticipantbythePTEandthecarryovercreditiswithinthecarryoverperiodallowedfor that credit. Conversely, anyportionof a carryovercreditallocatedtoanownerwhoqualifiedtoparticipateinaunifiedfilingforapriortaxableyearbutwhonolongerqualifiesmaynot be includedon the unified return, asthatportionofthecarryovercreditmayonlybeusedbythatownerwhenfilinghisorherseparateVirginiareturn.Ifanycarryovercreditisclaimed,attachtotheScheduleCR,alongwithallrequiredformsanddocumentation,areconciliationoftheavailablecarryovercreditaccountingforanychangeintheparticipantsfromtheprioryear.Thereconciliationmustincludethetypeofcredit,amountandtaxableyear earned, andamount(s) and taxableyear(s)usedorpartiallyusedforeachparticipanthavingacarryover.Amended Returns:When filing an amended unifiedreturn,alwaysprovideanamendedreturnreconciliationand a statement substantiating the reason for theamendment.Refertotheinstructionsforfilinganamendedunifiedreturnprovidedbelow.
When and How to File an Amended Unified ReturnIf the PTEfiles an amended federal return reflectingchanges to the taxable income amount or any otheramounts that flow through to the owners, the PTE isrequired to file an amendedForm502 and issue eachowner an amendedScheduleVK-1within one year offiling theamended federal return. If thePTE’s federalreturn is adjustedby the InternalRevenueService, thePTEisrequiredtofileanamendedForm502andissueeachowneranamendedScheduleVK-1withinoneyearfollowingthefinaldeterminationofsuchfederalchange,correction,orrenegotiation.Inaddition,thePTEmustamendtheunifiedreturn,Form765,withinoneyearoffilingitsamendedfederalreturnorwithinoneyear following thefinaldeterminationofsuchfederalchange,correctionorrenegotiation.Whenamending a unified return,whether the amendment istheresultofthePTEfilinganamendedreturn,afederalchangeoranyotherreason,alwaysattachastatementtotheamendedunifiedreturnsubstantiatingthereasonfortheamendment.To amend the unified return, complete a new unifiedreturnusingthecorrectedfigures,as if the return were the original return.Marktheamendedreturncheckbox
locatedonthetopleftofForm765,Page1.Inaddition,attach a reconciliationof any tax due amounts paid orrefundsreceivedbasedontheoriginalreturnfilingtotheamountoftaxdueorrefundcomputedfortheamendedunifiedreturn.Iftheamendedunifiedreturnincreasesthetaxliabilityandresultsinanettaxdue,attachacheckormoneyorderforthenettaxduetothereturnandmailtotheDepartmentwiththeamendedunifiedreturn.If the amended unified return reduces the tax liabilityandresultsinanetoverpaymentoftax,theDepartmentbylawmayissuearefundonlyiftheamendedreturnisfiledwithin:• threeyearsfromtheduedateoftheoriginalreturn,
includingvalidfilingextensions;• oneyearfromthefinaldeterminationoftheamended
federal returnor federalchange,whichever is later,providedthattheallowablerefundisnotmorethanthedecreaseinVirginiataxattributabletothefederalchangeorcorrection;
• twoyearsfromthefilingofanamendedVirginiareturnresultinginthepaymentofadditionaltax,providedthatthecurrentamendedreturnraisesissuesrelatingsolelytotheprioramendedreturnandthattherefunddoesnotexceedtheamountoftaxpaymentmadeasaresultoftheprioramendedreturn;or
• twoyearsfromthepaymentofanassessment,providedtheamendedreturnraisesissuesrelatingonlytothepriorassessmentandtherefunddoesnotexceedtheamountoftaxpaidonthepriorassessment.
Where To Mail The Unified ReturnSubmittheunifiedreturnwithpaymentofanytaxdueto:
Virginia Department of TaxationP.O. Box 760Richmond, VA 23218-0760
MakeyourcheckpayabletotheVirginiaDepartmentofTaxationandstapletotheleftfrontofForm765.DonotmailtheunifiedreturnwiththePTE’sreturntotheDepartmentinthesameenvelope.Followtheinstructionsformailing thePTE return,Form502, provided in theForm502instructions.How to Contact Customer Services
Tenemos servicios disponible en EspanolForforms,instructions,andinformation,ortoemailtheDepartmentaquestion,payabill,orfileanextension,visitourwebsite:
www.tax.virginia.gov
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Customer Service InquiriesDepartment of TaxationP. O. Box 1115Richmond, VA 23218-1115Phone: (804) 367-8031
Forms RequestsDepartment of TaxationP. O. Box 1317Richmond, VA 23218-1317Phone: (804) 440-2541Fax: (804) 236-2759
RETURN PREPARATION INSTRUCTIONSStep 1Fiscal or Short Year Filer: ThetaxableperiodfortheunifiedreturnisthesameasthetaxableperiodforthePTE.Ifthetaxableperiodisotherthanacalendaryear,enterthebeginningandendingdatesofthePTE’staxableyear.Name and Address: EnterthenameandaddressofthePTE.FEIN:EnterthePTE’sFederalEmployerIdentificationNumber.Virginia Account Number: Enter thePTE’sVirginiaAccountNumber.Change in Address or Legal Name Change:IfthePTE’slegalnameoraddresshaschanged,checktheappropriatebox.Amended Return:RefertotheinstructionsprovidedintheWhen and How to File an Amended Unified Return section.Form 760C: If Form 760C is attached claiming anexceptionorprovidingtheadditiontotaxcomputation,checktheappropriatebox. Step 2Complete Page 2, the summary of the participants’incomeandVirginiamodifications,asreportedoneachparticipant’sScheduleVK-1.Determine the Participants’ Income: CompleteLines1through5.Line1andLine4areaggregateamounts,computedbytotalingthecorrespondingamountsreportedon the participants’SchedulesVK-1. Line2 is not anaggregate number; it is theVirginiaApportionmentPercentagereportedtoeachparticipantonScheduleVK-1,Line7.FollowthelineinstructionsonForm765.Determine the Participants’ Additions to Income:CompleteLines6through11.ForeachLineitem,entertheaggregateamountinColumnA,computedbytotaling
thecorrespondingamountsreportedontheparticipants’SchedulesVK-1.MultiplyanyamountreportedinColumnAbytheVirginiaApportionmentPercentage,Line2,andentertheresultinColumnB.EnterguaranteedpaymentstopartnersonLine10,useCode99andattachanexplanationtothereturn.OnlythoseadditionsthatflowthroughfromthePTEtotheparticipantsandarerequiredbyVirginiainthecomputationofindividualincometaxmaybereportedontheunifiedreturn.TheadditionsapplicabletoindividualincometaxarelistedonForm765(Lines6,7,and9)orreportedontheForm765(Line10)usingtheadditioncodeslistedbelow.
10 Interest on Federally Exempt U.S. obligations. Entertheamountofinterestordividendsexempt
fromfederalincometax,buttaxableinVirginia,lessrelatedexpenses.(Va. Code§58.1-322B.2)
17 Cancellation of Debt Income (Fixed Date Conformity Adjustment).
Entertheamountofcancellationofdebtincomethat was excluded from your federal returnpursuantto§108(i)oftheIRC.Youmustincludeallcancellationofdebtincomefromtransactionsin2011.IncludetheamountofcancellationofdebtincomefromtransactionsbeforeApril21,2010thatmustbereportedin2011.Additionally,ifyouelectedtoreporttheamountofcancellationofdebtincomefromtransactionsin2009asanadditioninequalamountsoverthreetaxableyears(2009,2010and2011),includetheamountofcancellationofdebtincomefrom2009thatmustbereportedin2011.(Va. Code§58.1-301B.4)
18 Income from Dealer Disposition of Property Enter the amount thatwouldbe reportedunder
theinstallmentmethodfromcertaindispositionsofproperty.If,inaprioryear,thetaxpayerwasallowed a subtraction for certain income fromdealerdispositionsofpropertymadeonorafterJanuary1,2009,intheyearsfollowingtheyearofdisposition,thetaxpayerisrequiredtoaddbacktheamountthatwouldhavebeenreportedundertheinstallmentmethod.Eachdispositionmustbetrackedseparatelyforpurposesofthisadjustment.(Va. Code§58.1-322H)
19 Domestic Production Deduction Enter 1/3 of the total amount of the domestic
production deduction claimed on your federalreturnpursuanttoIRC§199.Fortaxableyears2010andthereafter,VirginiadoesnotconformtothedomesticproductiondeductionallowedunderIRC§199.Insteadofallowingthisdeductionto
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flowthrough,Virginiaallowsadeductionequaltotwo-thirdsofthefederaldeduction.(Va. Code§58.1-301B.5)
99 Other(AttachExplanation) Entertheamountofanyotherincomenotincluded
infederaladjustedgrossincomethatistaxableinVirginia.Attachanexplanationoftheaddition.Refer to the Form760 instructions for furtherinformation.
Determine the Participants’ Subtractions from Income:Complete Lines 12 through 17. For eachLine item,enter the aggregate amount, computed by totaling theamounts reportedon the participants’SchedulesVK-1.MultiplyanyamountreportedinColumnAbytheVirginiaApportionmentPercentage,Line2,andentertheresultinColumnB.OnlythosesubtractionsthatflowthroughfromthePTEtotheparticipantsandareallowedbyVirginiainthecomputationofindividualincometaxmaybereportedontheunifiedreturn.ThesubtractionsapplicabletoindividualincometaxarelistedonForm765(Lines12,13,and15)orreportedonForm765(Line16)usingthesubtractioncodeslistedbelow.
20 Income from Virginia Obligations Enter the amount of income fromVirginia
obligationsincludedinyourfederaladjustedgrossincome.(Va. Code§58.1-322C.2)
21 Federal Work Opportunity Tax Credit Wages Entertheamountofwagesorsalarieseligiblefor
theFederalWorkOpportunityTaxCreditthatisincluded in federal adjustedgross income. Donot enter the federal credit amount.(Va. Code §58.1-322C.6)
41 Tobacco Settlement Fund Income Enter the amount of payments received under
theTobaccoMaster SettlementAgreement andtheNationalTobaccoGrowerSettlementTrustprovidedtheyhavenotbeendeductedforfederaltaxpurposes.(Va. Code§58.1-322C.27)
42 Gain on the Sale of Land for Open-Space Use Enter the amount of any gain on the sale or
exchangeofrealpropertyoraneasementtorealpropertywhichresultsinthepropertyoreasementbeingdevotedtoopen-spaceuseasdefinedinVa. Code§58.1-3230 foraperiodnot less than30years.Totheextentthissubtractionistaken,notax credit for donating land for its preservationshallbeallowedforthreeyearsfollowingtheyear
inwhichthesubtractionisclaimed.(Va. Code§58.1-322C.22)
51 Gains from Land Preservation Entertheamountofgainorlossrecognizedonthe
saleortransferofaLandPreservationTaxCreditthatwasincludedinfederaladjustedgrossincome.(Va. Code§58.1-513(D))
52 Long-termCapitalGain For taxableyearsbeginningonorafterJanuary
1,2011,enterany income taxedasa long-termcapitalgainforfederalincometaxpurposes,oranyincometaxedasinvestmentservicespartnershipinterestincome(otherwiseknownasinvestmentpartnership carried interest income) for federalincometaxpurposes.Toqualifyforthissubtraction,theincomemustbeattributabletoaninvestmentina“qualifiedbusiness,”asdefinedinVa. Code§58.1-339.4,orinanyothertechnologybusinessapprovedbytheSecretaryofTechnology,providedthebusinesshasitsprincipalofficeorfacilityintheCommonwealthandlessthan$3millioninannualrevenuesinthefiscalyearpriortotheinvestment.TheinvestmentmustbemadebetweenthedatesofApril1,2010,andJune30,2013.Notaxpayerwhohasclaimeda taxcredit foran investmentina“qualifiedbusiness”underVa. Code§58.1-339.4shallbeeligibleforthissubtractionunderthis subdivision for an investment in the samebusiness.(Va. Code58.1-402C.24)
99 Other(AttachExplanation) Enter the amount of any other subtractions
from federal adjusted income as allowed forVirginiaindividualincometaxpurposes.Attachan explanation and supporting documentationfor each subtraction. Refer to the Form 760instructionsforfurtherinformation.
Step 3 CompleteForm765,Page1,Lines1through17.LinesnotlistedbelowareexplainedonForm765.Line 6 Amount of Tax: Use the amount on Line 5,VirginiaTaxableIncome,tocomputethetaxamountasfollows:IfLine5isnotover$3,000,thetaxis2%ofLine5.IfLine5isover$3,000butnotover$5,000,thetaxis$60plus3%oftheexcessover$3,000.IfLine5isover$5,000butnotover$17,000,thetaxis$120plus5%oftheexcessover$5,000.IfLine5isover$17,000,thetaxis$720plus5.75%oftheexcessover$17,000.
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Tax tables can be downloaded at www.tax.virginia.gov.
Line 7 Estimated Payments: Enter the total of theestimatedtaxpayments,ifany,madebythePTEonbehalfoftheparticipants.Line 8 Extension Payment:Entertheextensionpayment,ifany,madebythePTEonbehalfoftheparticipants.Line 9 Total Credits:AttachacompletedScheduleCRand all requireddocumentation. Refer to theScheduleCRinstructionsfordetailsandread thesection in theseinstructions titledWhat Forms and Schedules to Use.IfthetotalofallcreditamountsclaimedonScheduleCRexceedstheamountoftaxreportedonForm765,Part1,Line6,entertheamountoftaxfromLine6.Line 13 Overpayment Credited to Next Year: Entertheamountofoverpayment thePTEwould likecredited tonextyear’sestimatedtaxes.Line 15a Addition to Tax: Anadditiontotaxisnotowedif:• Allestimatedtaxpaymentsforthetaxableyearwere
madetimely;• Theamount,ifany,onForm765,Line11,islessthan
$150;and• Total estimatedpaymentswere at least 90%of the
unifiedfilers’ 2011 tax liability after nonrefundablecredits or 100% of the 2010 tax liability afternonrefundablecredits.
Use Form 760C to compute theAddition to Tax, ifapplicable.BesuretochecktheboxintheupperleftcornerofForm765ifForm760Cisattached.Line 15b Late Filing Penalty or Extension Penalty:Late Filing Penalty.Ifataxduereturnisfiledaftertheextendedduedate,itissubjecttoalatefilingpenalty.Thepenaltyis30%ofthetaxdue.Extension Penalty.Ifthereturnisfiledonorbeforetheextendedduedate,anextensionpenaltyisassessedifthetaxdue(Form765,Line11)isgreaterthan10%ofthetaxamount(Form765,Line6).Theextensionpenaltyis2%permonthorpartofamonthfromtheoriginalduedateofthereturnuntilthedatethetaxispaid.Themaximumextensionpenaltyisequalto12%ofthetaxdue.Ifataxdue return is submittedafter theextendedduedate, theextensionisinvalidandtheLateFilingPenaltyisassessed.
NOTICE: A Late Payment Penalty may be assessed if a tax due return is filed and full payment is not made when the return is filed. TheLatePaymentPenaltyis6%permonthorpartofamonthduringwhichanytaxdueamountremainsunpaid,nottoexceed30%.ForanymonththattheLateFilingPenaltyapplies,theLatePaymentPenaltywillnotapply.The totalofanyLateFilingPenaltyandLatePaymentPenaltycannotexceed30%ofthetaxdue.Line 15c Interest: Ifa taxdue return isfiledafter theoriginalduedate,interestisassessedontheamountoftaxduefromtheoriginalduedatetothedatethereturnisfiled.Interestisassessedevenifthereturnissubmittedbytheextendedduedate.Toobtainthedailyinterestfactor,visitwww.tax.virgina.gov orcall(804) 367-8031.Line 17 Refund: Refundsarepaid to thePTE,exceptthat (1) theDepartmentmay apply the overpayment toanyoutstanding amounts related to unified returnsfiledbythesamePTE,withoutregardtotheidentitiesoftheparticipants;and(2)anoverpaymentmaybeappliedtotheestimatedtaxforthefollowingtaxyear.Step 4CompleteScheduleL,ListofParticipants(seeinstructionsforScheduleLonpage3undertheheading“WhatFormsandSchedulestoUse”).ScheduleLisarequiredattachmentandmustincludethename,homeaddress,SocialSecurityNumber, allocationpercentage andguaranteedpaymentamountofeachparticipant.Step 5Assembletheunifiedreturnasfollows:• Form765,UnifiedReturn• Schedule CR, Credit Computation Schedule, if
applicable, alongwithall supportingdocumentationandthecarryoverreconciliation
• ScheduleL,ListofParticipantsForataxdueunifiedreturn,makethecheckpayabletotheVirginiaDepartmentofTaxationandstapletothefrontleftofthereturn.
Mail the return to: Virginia Department of Taxation
P.O. Box 760Richmond, VA 23218-0760
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