Administrative Code

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Virginia Administrative Code
Title 23. Taxation
Agency 10. Department of Taxation
Chapter 120. Corporation Income Tax
1/27/2023

23VAC10-120-10. Conformity of terms to IRC (Internal Revenue Code).

A. In general.

1. Chapter 3 of Title 58.1 of the Code of Virginia imposes an income tax upon Virginia income. Generally, Virginia taxable income is federal taxable income under the laws of the United States with certain adjustments and modifications set forth in detail elsewhere in this chapter and the regulations thereunder.

2. The words and expressions used in the chapter shall have the same meaning as the same words or expressions used in comparable context in the laws of the United States unless the context of the words or expressions in this chapter clearly requires a different meaning. The meaning of a word or expression is clearly required to be different from the meaning of such word or expression in the laws of the United States if:

a. Chapter 3 of Title 58.1 expressly defines such word or expression, or

b. if required to prevent an item from being subject to double taxation or double deduction in a single return, or

c. if the Commissioner determines that a different meaning is required because the word or expression is not used in a comparable context in the laws of the United States and publishes such determination by regulation.

B. Laws of the United States.

1. Whenever used in this chapter, the term "laws of the United States" means the provisions of the Internal Revenue Code of 1954, as amended (sometimes abbreviated IRC) as interpreted by Treasury regulations, rulings and other material of the Internal Revenue Service, by the courts of the United States and by the courts of Virginia.

2. Whenever the meaning of words or expressions used in the laws of the United States is changed by amendment, regulation, court decision or otherwise, the meaning of such words or expressions shall be similarly changed for application to this chapter.

3. Any such changes shall be effective for purposes of this chapter to the same extent, at the same time and for the same taxable years as such changes are effective for federal purposes.

Statutory Authority

§§ 58.1-203 and 58.1-301 of the Code of Virginia.

Historical Notes

Derived from VR630-3-301, eff. January 1, 1985.

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