August 25, 2020
Re: § 58.1-1821 Appeal: Individual Income Tax
Dear *****:
This will respond to your letter in which you seek reconsideration of the Department’s determination letter, issued as Public Document (P.D.) 19-114 (10/4/2019) to ***** (the “Taxpayer”).
FACTS
In P.D. 19-114, the Department denied the Taxpayer’s refund request for the taxable years ended December 31, 2013 through 2015 because its interest in a limited liability company was greater than that permitted by P.D. 95-19 (2/13/1995). In addition, the Department determined that the Taxpayer did not qualify for an alternative method of allocation and apportionment. The Taxpayer requests that the Department reconsider its determination, contending it was not a unitary business with the limited liability company and, therefore, the income and apportionment factors from the limited liability company cannot be included in determining income apportioned to Virginia.
DETERMINATION
Pursuant to Title 23 of the Virginia Administrative Code (VAC) 10-20-165 F, a taxpayer who disagrees with the Tax Commissioner’s final determination may request a reconsideration within 45 days of the date of the determination letter. The Department’s determination letter was issued on October 4, 2019. The Taxpayer’s request for reconsideration is dated May 13, 2020, and was not received by the Department until May 21, 2020, both well after the 45-day period expired on November 18, 2019.
Accordingly, the Taxpayer’s request for reconsideration is time barred. The determination in P.D. 19-114 is unchanged, and the Taxpayer’s request for the refund of Virginia corporate income tax paid for the taxable years ended December 31, 2013 through 2015 is not granted. This letter constitutes the Department’s final determination on this matter.
The Code of Virginia section, regulation 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 response, you may contact ***** in the Department’s Office of Tax Policy, Appeals and Rulings, at *****.
Sincerely,
Craig M. Burns
Tax Commissioner
AR/3422.B