CODE OF VIRGINIA

INFORMATION REPORTING ON RENTAL PAYMENTS TO NONRESIDENT PAYEES; PENALTIES (§
58.1-316)

A. Notwithstanding any other provision of this chapter, every nonresident payee
receiving gross payments of $ 600 or more in any calendar year from the rental
of real property in this Commonwealth shall register with the Department of
Taxation pursuant to forms and regulations adopted by the Tax Commissioner.

B. Any broker as defined in § 6045(c) of the Internal Revenue Code making
payments to a nonresident payee attributable to the rental of real property in
this Commonwealth shall obtain from the nonresident payee the registration form
required in subsection A of this section or satisfactory evidence of prior
registration.  The broker shall retain a copy of the registration form in his
files and shall transmit the original copy to the Department of Taxation on or
before the fifteenth day of the month following the month in which the form was
received from the payee.

C. If a nonresident payee fails to provide a completed registration form to the
broker within sixty days after being requested by the broker or if such payee
provides the broker with a registration form that is incomplete or false on its
face, the broker shall file a registration form on behalf of the payee providing
the payee’s name, address, identification number, and such other
information as may be required by the Tax Commissioner.  In the case of each
failure to file a registration form with the Tax Commissioner on the date
prescribed therefor, the broker failing to file such registration form shall pay
a $ 50 penalty for each month that each such failure to file continues, not
exceeding six months in the aggregate.

D. Any payee who willfully supplies false or fraudulent information to a broker
with the intent to evade the payment of income taxes properly due on the rental
of real estate in this Commonwealth and any broker who has actual knowledge that
any information supplied by a payee is false or fraudulent and fails to notify
the Department of Taxation of such shall be guilty of a Class 1 misdemeanor.

E. For purposes of this section, the term “nonresident payee” means
every individual who is not a resident, every nonresident estate or trust, every
partnership and S corporation which has nonresident partners or shareholders, or
every corporation which is not formed or organized under Virginia law.

HISTORY: 1990, c. 910.