• Pass-Through Entities Are Not Subject to the Virginia Minimum Tax on Telecommunications Companies
  • September 22, 2008 | Authors: Craig D. Bell; J. Christian Tennant
  • Law Firm: McGuireWoods LLP - Richmond Office
  • 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.