In an opinion released today, the Supreme Court of Virginia ruled that
non-corporate pass-through entities are not subject to the minimum tax imposed
upon telecommunications companies. The case is entitled as Virginia Cellular LLC v.
Virginia Department of Taxation, Supreme Court of Virginia, Record No. 071895
(September 12, 2008). The Court held that only telecommunications companies
formed as corporations are subject to the minimum tax. Partnerships,
limited partnerships, limited liability companies, and other pass-through
entities are not subject to the minimum tax.
If you are a telecommunications company formed as a non-corporate
pass-through entity and have paid the minimum tax imposed upon
telecommunications companies to Virginia, you may be eligible for a refund of
Virginia taxes. Please contact either of the undersigned at McGuireWoods
immediately so we can help you determine if you are eligible for such a refund.
In addition, McGuireWoods offers a full range of state and local tax planning
and litigation services to taxpayers of all types and sizes, both public and
privately held. Our state and local tax attorneys are highly versed in all
aspects of state and local tax planning, as well as all aspects of tax
compliance, including civil audit and general and procedural matters before
local and state tax authorities. We regularly represent clients in the
preparation of private letter ruling requests, administrative tax protests,
preparation of offers in compromise for outstanding tax assessments, and offer
the complete range of trial and appellate state and local tax litigation
services frequently demanded by cutting edge taxpayers. We would be pleased to
discuss any interest you may have in a Virginia tax issue. Please do not
hesitate to contact us at your convenience.