Tax Type
Corporation Income Tax
Description
Taxpayer was required to file an administrative appeal within 90 days
Topic
Statute of Limitations
Date Issued
05-22-2008
May 22, 2008
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 withholding tax, sales and use tax, litter tax and tire tax for liabilities owed for the taxable periods January 2004 through March 2005. In April 2006, when the Corporation failed to pay the deficiencies, the Department assessed the Taxpayer penalties in the amount of the taxes, penalties and interest owed by the Corporation pursuant to Va. Code § 58.1-1813. In order to collect the penalty, the Department recorded a memorandum of lien with the circuit court in ***** (the "County") in June 2006.
By letter dated June 29, 2007, the Taxpayer contests the assessments with regard to the converted withholding tax. He asserts that the Corporation's assets, including the withholding tax, were illegally seized in 2004. The Taxpayer states that he intended to pay the taxes withheld to the Department, but he was unable to until he obtained the illegally seized funds. He requests that the Department accept his appeal and the memorandum of lien be released pending the resolution of the issues with 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 penalties for the Corporation's liabilities were assessed against the Taxpayer on April 6, 2006. The Taxpayer was required to file an administrative appeal within 90 days after this assessment date, or by July 5, 2006.
The Taxpayer's administrative appeal is dated June 29, 2007, well after the 90-day limitations period. The Taxpayer asserts that he filed his appeal as soon as he knew of the memorandum of lien. He believes that he should be granted an exception to the 90-day rule because he was not aware of the collection action taken by the Department. Neither the statute nor the Administrative Appeal Guidelines for Tax Assessments Issued by the Virginia Department of Taxation provides an exception for such circumstances. See Public Document (P.D.) 06-140 (11/29/2006). Therefore, the Taxpayer's application for correction pursuant to Va. Code § 58.1-1821 is barred by the statute of limitations, and the memorandum of lien will remain in full effect until the Taxpayer satisfies the delinquent liabilities due to the Commonwealth.
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 Office of Tax Policy, Appeals and Rulings, at *****.
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- Sincerely,
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Janie E. Bowen
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- Tax Commissioner
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AR/1-1628435504.B
Rulings of the Tax Commissioner