Tax Type
Corporation Income Tax
Description
Assessments for the unpaid taxes, plus penalties and interest.
Topic
Statute of Limitations
Date Issued
08-07-2014
August 7, 2014
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 your client, the ***** (the "Taxpayer"), for the taxable years ended September 30, 2007 and September 30, 2010.
FACTS
For each of the taxable years in question, the Taxpayer filed a corporate income tax return that showed tax due. When the Taxpayer did not remit payment, the Department issued assessments for the unpaid taxes, plus penalties and interest. The Taxpayer filed an appeal, stating that it has hired a tax professional to correct errors it discovered on its prior tax returns.
DETERMINATION
Virginia Code § 58.1-1821 states, "Any 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. Such application shall be in the form prescribed by the Department and shall fully set forth the grounds upon which the taxpayer relies and all facts relevant to the taxpayer's contention."
Title 23 of the Virginia Administrative Code (VAC) 10-20-165 mandates that a taxpayer file a complete appeal within the 90-day limitations period. A complete administrative appeal must include:
- 1. A statement signed by the taxpayer or duly appointed or authorized agent or attorney setting forth each alleged error in the assessment;
2. The grounds upon which the taxpayer relies and all facts relevant to the taxpayer's contention; and
3 Controlling legal authority (statutes, regulations, rulings of the Tax Commissioner, court decisions, etc.) upon which the taxpayer's position is based.
The Department issued the assessment for the taxable year ended September 30, 2010 on January 18, 2012 and the assessment for the taxable year ended September 30, 2007 on September 14, 2012. The Taxpayer appealed the assessments on March 28, 2014, well after the 90-day limitations periods had expired (April 17, 2012 and December 13, 2012, respectively). Because the Taxpayer failed to file a complete administrative appeal within 90 days from the dates of the assessments, the Taxpayer is now barred from filing an application for correction of the assessments and there is no basis for relief. In addition, even if the Taxpayer had timely filed the appeal, the Taxpayer does not contend that the Department erred in making the assessments. As such, the Taxpayer has not provided a basis upon which relief could be granted.
If the Taxpayer believes it made errors on the returns, it should file amended returns within 30 days of the date of this letter. Mail the returns to: Virginia Department of Taxation, Office of Tax Policy, Appeals and Rulings, P.O. Box 27203, Richmond, Virginia 23118-7203, Attention: *****. Once the amended returns are received, they will be reviewed and the assessments will be adjusted as permitted under the statute of limitations. If the returns are not filed within the time permitted, the assessments will be upheld and collection action will resume.
The Code of Virginia and regulation sections cited are available on-line at www.tax.virginia.gov in the Laws, Rules & Decisions section of the Department's web site. 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
Tax Commissioner
AR/1-5664780886.M
Rulings of the Tax Commissioner