Tax Type
Individual Income Tax
Description
Claim for refund was made prior to the expiration of the statute of limitations.
Topic
Filing Extensions
Taxpayers' Remedies
Date Issued
08-27-2014
August 27, 2014
Re: § 58.1-1821 Application: Individual Income Tax
Dear *****:
This will reply to your letter in which you seek a refund of individual income tax paid by your clients, ***** (the "Taxpayers"), for the taxable year ended December 31, 2009.
FACTS
On May 26, 2010, the Taxpayers filed their Virginia individual income tax return for the 2009 taxable year. They filed an amended return in September 2013, claiming a refund. The Department denied the refund because the amended return was not filed within the statute of limitations. The Taxpayers filed an appeal, contending the amended return was filed within three years of the extended due date of the original return.
DETERMINATION
Virginia Code § 58.1-341 A requires that taxpayers file individual income tax returns by May 1 of the year following the taxable year for which the return is filed. Taxpayers are allowed to elect to take a six month extension to file their returns. In order to elect an extension, a taxpayer must (i) file the return within the extended period, and (ii) on or before the original due date for the filing of the return, pay the full amount properly estimated as the balance of the tax due for the taxable year. See Va. Code § 58.1-344. If the taxpayer intends to take the extension but then does not file a return or pay the full amount of the tax due by the extended due date, the taxpayer is treated as if no extension had been granted. See Public Document (P.D.) 10-238 (9/30/2010).
When a return has been filed on or before an original or extended due date, whether such extension was granted by the Department or automatically, an amended return must be filed within three years of the original or extended due date, as applicable. See Va. Code § 58.1-1823.
In this case, the Taxpayers paid the full amount of tax due prior to the due date of May 3, 2010 (May 1 fell on a Saturday) and filed their original return before the extended due date. As such, the Taxpayers had three years from the extended due date to file an amended return and claim a refund for an overpayment of tax. By filing an amended return in September 2013, the Taxpayers claim for refund was made prior to the expiration of the statute of limitations. Accordingly, the amended return will be processed and the appropriate refund will be issued.
The Code of Virginia sections and public document 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
- Craig M. Burns
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AR/1-5627410032.M
Rulings of the Tax Commissioner