Tax Type
Corporation Income Tax
Description
Adjustments related to three intangible holding companies, timely filed appeals
Topic
Statute of Limitations
Date Issued
06-01-2007
June 1, 2007
Re: § 58.1-1821 Application: Corporate Income Tax
Dear *****:
This will reply to your letter in which you seek correction of the corporate income tax assessments issued to ***** (the "Taxpayer") for the taxable years ended January 31, 2003 through 2005.
FACTS
The Taxpayer was audited for the taxable years in question. The auditor made a number of adjustments. Assessments, dated October 19, 2006, were issued to the Taxpayer. On January 18, 2007, the Taxpayer filed an administrative appeal contesting adjustments related to three intangible holding companies.
DETERMINATION
Virginia Code § 58.1-1821 provides that "[a]ny person assessed with any tax administered by the Department of Taxation may, within nines days from the date of such assessment, apply for relief to the Tax Commissioner." [Emphasis added.] Pursuant to Administrative Appeal Guidelines for Tax Assessments Issued by the Virginia Department of Taxation § 3 A, "The 90-day limitations period begins on the calendar day after the date of assessment and continues for 90 consecutive calendar days (including weekends and holidays)." See Public Document (P.D.) 06-140
(11/29/2006).
Under these guidelines, the Taxpayer was required to file an administrative appeal within 90 days after the assessment date, or by January 17, 2007. The Taxpayer's administrative appeal is dated January 18, 2007, one day after the 90-day limitations period expired. Therefore, the Taxpayer's application for correction filed pursuant to Va. Code § 58.1-1821 is barred by statute.
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,
Janie E. Bowen
Tax Commissioner
- Sincerely,
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AR/1-1169290405B
Rulings of the Tax Commissioner