Tax Type
Corporation Income Tax
Description
Taxpayer claims he is not a corporate officer and not liable for Corporations bills
Topic
Corporate Distributions and Adjustments
Persons Subject to Tax
Taxability of Persons and Transactions
Date Issued
05-25-2007
May 25, 2007
Re: § 58.1-1821 Application: Corporate Officer Liability
Dear *****:
This will reply to your letter in which you seek correction of converted assessments issued to ***** (the "Taxpayer").
FACTS
The Department issued numerous assessments to the ***** (the "Corporation") for corporate income tax, sales and use tax and withholding tax for liabilities owed for taxable periods October 2000 through June 2004. When the Corporation failed to pay the deficiencies, the Department timely assessed the Taxpayer penalties in the amount of the taxes, penalties and interest owed by the Corporation pursuant to Va. Code § 58.1-1813. These assessments were issued to the Taxpayer in July, August, and September 2004.
By letter dated December 5, 2006, the Taxpayer contests the assessments, asserting that he was not an employee or involved in any of the day-to-day operations of the Corporation for a number of years. The Taxpayer claims that he is not a corporate officer as defined in Va. Code § 58.1-1813 and, therefore, he cannot be held liable for the taxes, penalties and interest assessed to the Corporation.
DETERMINATION
Virginia Code § 58.1-1821 provides that "[a]ny person assessed with any tax administered by the Department of Taxation may, within ninety days from the date of such assessment, apply for relief to the Tax Commissioner." [Emphasis added.] In this case, the assessments issued to the Taxpayer were dated July 20, 2004, August 20, 2004, and September 17, 2004. The Taxpayer was required to file an administrative appeal within 90 days after the assessment dates, or by December 16, 2004, for the latest assessment date.
The Taxpayer's administrative appeal is dated December 5, 2006, well after the 90-day limitations period. Therefore, the Taxpayer's application for correction pursuant to Va. Code § 58.1-1821 is barred by the statute of limitations.
The Code of Virginia section cited and 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 about this response, you may contact ***** in the Department's Office of Policy and Administration, Appeals and Rulings, at *****.
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- Sincerely,
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- Janie E. Bowen
Tax Commissioner
- Janie E. Bowen
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AR/1-1104955190B
Rulings of the Tax Commissioner