June 25, 2019
Re: § 58.1-1821 Application: Individual Income Tax
Dear *****:
This will respond to your letter in which you seek a refund of the overpayment of individual income tax paid by ***** (the “Taxpayer”) for the taxable year ended December 31, 2013.
FACTS
The Department received information from the Internal Revenue Service (IRS) indicating that the Taxpayer may have been required to file a Virginia income tax return for the 2013 taxable year. A review of the Department’s records showed that the Taxpayer had not filed a return. The Department requested additional information in order to determine if the Taxpayer was taxable in Virginia. When a response was not received, the Department issued an assessment. Subsequently, the Taxpayer filed a 2013 Virginia individual income tax return claiming a refund. The Department abated the assessment, but denied the refund request because the return was filed beyond the statute of limitations for claiming a refund. The Taxpayer appeals, contending that the refund should be paid.
DETERMINATION
Statute of Limitations
Virginia Code § 58.1-499 A provides that in the case of any overpayment of any tax, whether by reason of excessive withholding, overestimating and overpaying estimated tax, or error on the part of the taxpayer, the Department shall order a refund of the overpayment. Virginia Code § 58.1-499 D specifies, however, in pertinent part:
No refund under this section . . . shall be made . . . whether on discovery by the Department or on written application of the taxpayer, if such discovery is not made or such written application is not received within three years from the last day prescribed by law for the timely filing of the return . . . .
Virginia Code § 58.1-341 A requires that a taxpayer file an individual income tax return by May 1 of the year following the tax year for which the return is filed. Based on Virginia statutes, the due date for the Taxpayer’s 2013 individual income tax return was May 1, 2014. As such, the return was required to be filed by May 1, 2017, in order to receive a refund for the 2013 taxable year. The Taxpayer’s original 2013 income tax return was not filed until August 15, 2018, well after the statute of limitations had expired.
Professional Tax Preparation
The Taxpayer claims that she was unaware of the statute of limitations and was not informed by her accountant. A taxpayer’s reliance on a tax professional to prepare income tax returns, while understandable, does not relieve the taxpayer of the responsibility for ensuring that the return is filed and the information reported on the return is accurate. See Virginia Code § 58.1-341, Public Document (P.D.) 11-82 (5/31/2011), P.D. 12-93 (6/8/2012), and P.D. 16-169 (8/29/2016).
CONCLUSION
The provisions of Virginia Code § 58.1-499 D are clear and do not provide the Department with any discretion in enforcing the three-year limitations period to apply for a refund. Accordingly, I cannot grant your request for refund of the overpayment of individual income tax for the taxable year ended December 31, 2013.
The Code of Virginia sections, and public documents 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 *****.
Sincerely,
Craig M. Burns
Tax Commissioner
AR/1980-C