Tax Type
Individual Income Tax
Description
Department determined that the Taxpayer established a domicile in Virginia
Topic
Domicile
Out of State Tax Credits
Records/Returns/Payments
Taxable Income
Date Issued
03-22-2012
March 22, 2012
Re: § 58.1-1821 Application: Individual Income Tax
Dear *****:
This will reply to your letter in which you seek reconsideration of the Department's determination letter, issued as Public Document (P.D.) 11-113 (6/20/2011) to ***** (the "Taxpayer"), regarding an individual income tax assessment for the taxable year ended December 31, 2007. I apologize for the delay in this response.
FACTS
In P.D. 11-113 the Department determined that the Taxpayer established a domicile in Virginia in May 2007, and upheld the assessment. The Taxpayer requests a redetermination, contending the Department did not consider the filing of a 2007 ***** (State A) individual income tax return. The Taxpayer believes the determination was reached without consideration of all of the information provided. Further, the Taxpayer requests assurance that the Department took into account tax paid to State A on her income.
DETERMINATION
The Taxpayer and her spouse filed a part-year State A individual income tax return. According to the return, the couple moved out of State A in April 2007. In its determination, the Department acknowledged that the Taxpayer was a domiciliary resident of State A until May 2007. The issue under consideration is not whether the Taxpayer was a resident of State A for a portion of the 2007 taxable year, but where she established her domicile after moving from State A.
In P.D. 11-113, the Department found that the preponderance of evidence showed that the Taxpayer established a domicile in Virginia after abandoning her domiciliary residence in State A in April 2007. The Department concluded that the Taxpayer became a domiciliary resident of Virginia in May 2007.
In upholding that the Taxpayer was domiciliary resident of Virginia, the Department acknowledged that its 2007 assessment is based on the information it had on hand. While consideration was given to the State A part-year tax return, the Department recommended that the Taxpayer file a 2007 part-year Virginia return in order to more accurately reflect her Virginia tax liability for the portion of the year she resided in Virginia. Title 23 of the Virginia Administrative Code (VAC) 10-110-40 provides that individuals who are residents of Virginia for only part of a taxable year are taxed as residents for that portion of the year that they reside in Virginia.
The Taxpayer subsequently filed the 2007 part-year Virginia return, as recommended in P.D. 11-113. This return will be processed and the assessment will be adjusted accordingly.
If you have any questions regarding this determination, you may contact ***** in the Office of Tax Policy, Appeals and Rulings, at *****.
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- Sincerely,
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- Craig M. Burns
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- Tax Commissioner
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- Craig M. Burns
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AR/1-4826078211.E
Rulings of the Tax Commissioner