May 25, 2016
Re: § 58.1-1821 Application: Retail Sales and Use Tax
Dear *****:
This is in response to your letters submitted on behalf of ***** (the "Taxpayers"), in which you request correction of the retail sales and use tax and withholding tax assessments converted to the Taxpayers for the periods April 2013 through March 2014. I apologize for the delay in responding to your request.
The Taxpayers protest any personal tax liability under Va. Code § 58.1-1813 for the unpaid tax liabilities incurred by ***** (the "Business") for the periods noted above. The mutual exit agreement provided and the amended returns filed to correct ownership percentages establish that the Taxpayers were no longer associated with the Business as of March 1, 2013. Accordingly, I find that the Taxpayers cannot be held as corporate officers as defined under Va. Code § 58.1-1813 for the periods in question.
Based on this determination, the converted assessments at issue are not applicable. I understand that the Department's Collection Section previously reversed and abated the contested assessments.
If you have any questions about this determination, please contact ***** in the Department's Office of Tax Policy, Appeals and Rulings, at *****
Sincerely,
Craig M. Burns
Tax Commissioner
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AR/1-6066910102.R