502 FED-2: Virginia Partnership-Level Federal Adjustments Report (2024)
Virginia · Virginia Tax · Used for tax years 2024
Virginia Form 502FED-2 is the Virginia Partnership-Level Federal Adjustments Report for the partnership pays election. It calculates adjusted taxable income, tax, penalties, and interest when a partnership elects to pay Virginia income tax on behalf of its partners.
Who files this form
Use Form 502FED-2 if your partnership elects to pay Virginia income tax due on partnership-level federal adjustments on behalf of its partners instead of filing Virginia amended returns. The form calculates adjusted taxable income, tax, penalties, and interest for this election.
When it's due
For the 2024 version:
- Form 502FED-1 must be completed and filed within 90 days of the final determination date for partnership-level federal adjustments.
- Form 502FED-2 is also due within 90 days of the final determination date.
What you'll need
Have these forms and details ready:
- Form 502FED-1, including Line 6, Column B, which supplies the starting amount for Form 502FED-2.
- The partnership name as shown on Form 502FED-1 and its FEIN.
- Partner counts and distributive shares of adjustments for resident direct partners, nonresident direct partners, corporate and tax-exempt partners, and tiered partners.
- Virginia-source amounts and the amounts sourced outside Virginia or excluded for tiered partners, as requested on the form.
- State Partnership Representative signature and contact details, plus preparer details if applicable.
- Form 502V if Section II, Line 22 shows an amount due.
How to file
- Check the box consenting to payment of tax at the partnership level.
- Complete Section I to calculate adjusted taxable income and tax for each partner group. Complete Section II to total tax, penalty, and interest.
- Complete the declaration and signature area.
- If Section II, Line 22 shows an amount due, make payment on Form 502V. Payments must be made electronically unless you have an approved waiver.
The supplied form does not give a mailing address or a method for submitting Form 502FED-2 itself.
Common mistakes
- Leaving the consent box unchecked. The form warns that this makes the partnership-level payment election invalid. Tax would instead be calculated and paid using the Default Push-Out Method.
- Overlooking the payment requirement. If Line 22 shows an amount due, you must make payment on Form 502V.
- Making a nonelectronic payment without an approved waiver. The form requires electronic payments unless a waiver has been approved.
Questions people ask
How does Form 502FED-2 relate to Form 502FED-1?
Form 502FED-2 starts with the change in Virginia taxable income allocated to Virginia from Form 502FED-1, Line 6, Column B. Form 502FED-1 must also be completed and filed.
What happens if I do not check the partnership consent box?
Your election will be invalid, and tax would be calculated and paid using the Default Push-Out Method.
How is the total amount due calculated?
Line 19 adds the tax amounts from Lines 4, 8, 12, and 18. Line 22 adds that tax, the penalty on Line 20, and the interest on Line 21.
How do I pay an amount due?
If Line 22 shows an amount due, make payment on Form 502V. Payment must be electronic unless you have an approved waiver.