August 11, 2020
Re: § 58.1-1821 Application: Communications Sales and Use Tax
Dear *****:
The Department previously acknowledged receipt of the appeal filed on behalf of ***** (the “Taxpayer”). The main issue in the appeal is the application of the communications sales and use tax on charges billed to the Taxpayer’s customers during the audit sample period October 2018.
Based on information provided by the Taxpayer, the auditor found that the sales price, upon which the communications sales and use tax was charged, did not include the Universal Service Fund (USF) charge and the Public Utilities Commission (PUC) fee. Accordingly, the auditor assessed the communications sales and use tax on the charges in the audit.
The Taxpayer maintains that its erroneous calculation of the communications sales and use tax was due to a system abnormality during the sample month. The Taxpayer maintains that the abnormality only occurred in the sample month and has provided documentation to support its contention. The Taxpayer requests that the documentation be reviewed and that the tax assessed on the charges at issue be removed from the audit.
The auditor will review the documentation and make adjustments, as appropriate. Therefore, the appeal is being closed. I understand that the assessment has been paid in full. If the review results in adjustments to the audit, the Taxpayer will receive a refund plus refund interest. At the conclusion of the auditor’s review, should issues remain, the Taxpayer may submit an appeal within 90 days of the audit revision in accordance with Virginia Code § 58.1-1821 and Title 23 of the Virginia Administrative Code 10-20-165.
If you have any questions regarding the review of documentation, you may contact the auditor. If you have any questions about the appeals process, please contact ***** in the Department’s Office of Tax Policy, Appeals and Rulings, at *****.
Sincerely,
Craig M. Burns
Tax Commissioner
AR/3299P