Tax Type
Individual Income Tax
Description
Joint assessments, may file separate VA returns for the same taxable year
Topic
Appropriateness of Audit Methodology
Date Issued
03-11-2002
March 11, 2002
Re: § 58.1-1821 Application: Individual Income Tax
Dear *****
This will reply to your letter concerning the Virginia individual income tax assessment for your client, ***** (the "Taxpayer") for the taxable years 1994 and 1995. I apologize for the delay in responding to your letter.
FACTS
The Taxpayer filed joint federal tax returns with her husband for the taxable years 1994 and 1995. Virginia tax returns were not filed for those taxable years. The department, upon receipt of information from the Internal Revenue Service, issued joint assessments to both spouses. The Taxpayer has elected to file separate Virginia income tax returns from her husband. The Taxpayer is requesting that her tax liability for 1994 and 1995 be based upon these separate returns.
DETERMINATION
Title 23 of the Virginia Administrative Code (VAC) 10-110-170 (B)(1) provides, in pertinent part, the following:
-
- A husband and wife may elect to file separate Virginia returns or file separately on a combined return even though they file a joint return for federal purposes.
Therefore, taxpayers filing a joint federal return may elect to file separate Virginia income tax returns for the same taxable year. For the taxable years 1994 and 1995, the Taxpayer elected to file separate Virginia tax returns from her husband. As a result of this election, the Taxpayer's tax liability for the taxable years 1994 and 1995 has been determined separate from her husband's tax liability.
Based in the information provided, I have adjusted the department's prior assessments to reflect the Taxpayer's election to file separate Virginia tax returns for the taxable years 1994 and 1995. The appropriate refunds will be issued in accordance with the enclosed schedule. If there are any questions, please contact ***** of our Policy Development Office at *****.
Sincerely,
Danny M. Payne
Tax Commissioner
PD/22595N
Rulings of the Tax Commissioner