Tax Type
Individual Income Tax
Description
Department enforcing the three-year limitations period to apply for a refund
Topic
Payment and Refund
Statute of Limitations
Date Issued
04-26-2007
April 26, 2007
Re: § 58.1-1821 Application: Individual Income Tax
Dear *****:
This will reply to your letter in which you appeal the Department's denial of a refund claimed on an individual income tax return filed by ***** (the "Taxpayers") for the 2002 taxable year.
FACTS
The Taxpayers, a husband and wife, are Virginia residents. The Department received information from the Internal Revenue Service indicating that the husband had income for the 2003 taxable year. The Department sent a letter to the husband in May 2006 requesting that he file the proper Virginia individual income tax return or provide an explanation concerning why the income was not taxable.
In June 2006, the Taxpayers filed an individual income tax return for the 2003 taxable year and paid the balance due. They also filed a return for the 2002 taxable year claiming a refund. The Department disallowed the Taxpayers' refund claim for the 2002 taxable year because the tax return was filed after expiration of the statute of limitations.
DETERMINATION
Virginia Code § 58.1-499 A provides that in the case of any overpayment of any tax, whether by reason of excessive withholding, overestimating and overpaying estimated tax, or error on the part of the taxpayer, the Tax Commissioner shall order a refund of the overpayment. Virginia Code § 58.1-499 D specifies, however, in pertinent
part that:
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- No refund under this section . . . shall be made . . . whether on discovery by the Department or on written application of the taxpayer, if such discovery is not made or such written application is not received within three years from the last day prescribed by law for the timely filing of the return . . .
The due date for the Taxpayers' 2002 individual income tax return was May 1, 2003. As such, a return was required to be filed by May 1, 2006, in order to receive a refund for the 2002 taxable year. The Taxpayers' 2002 return was not filed until June 2006. While I sympathize with the Taxpayers' situation, the provisions of Va. Code § 58.1-499 D are clear and do not provide the Department with any discretion in enforcing the three-year limitations period to apply for a refund. Accordingly, I have no choice but to deny the Taxpayers' request for an income tax refund for the 2002 taxable year.
The Code of Virginia sections cited, along with other reference documents, are available on-line at www.tax.virginia.gov in the Tax Policy Library section of the Department's web site. If you have any questions regarding this determination, you may contact ***** in the Department's Office of Policy and Administration, Appeals and Rulings, at *****.
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- Sincerely,
Janie E. Bowen
Tax Commissioner
- Sincerely,
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AR/1-1029175936E
Rulings of the Tax Commissioner