March 6, 2020
Re: § 58.1-1821 Application: Individual Income Tax
Dear *****:
This will respond to your letter in which you seek a refund of individual income tax paid by ***** (the “Taxpayer”) for the taxable year ended December 31, 2014.
FACTS
The Taxpayer resided and worked in ***** (State A) in 2014, but had resided in Virginia prior to that year. The Taxpayer filed a Virginia resident income tax return for the 2014 taxable year in March 2015 but did not file a State A return as required. In May 2019, State A issued an assessment to the Taxpayer for failure to file a State A return and pay the tax due. The Taxpayer then filed an amended 2014 Virginia return the same month, changing her filing status to a nonresident of Virginia and requesting a refund. The Department denied the refund claim on the basis that the statute of limitations had expired. The Taxpayer appealed, requesting that the refund be issued.
DETERMINATION
Generally, Virginia Code § 58.1-1823 allows a taxpayer to file an amended return within three years from the last day prescribed by law for the timely filing of the return. In this case, the Taxpayer did not file the amended return until May 2019, long after the general statute of limitations had expired in May 2018 to claim a refund on a 2014 amended return. Virginia Code § 58.1-1823, however, also includes a number of exceptions to the general rule when specific circumstances are present. Under Virginia Code § 58.1-1823 A (v), a taxpayer has one year from the final determination of a change made by any other state to file an amended return to request a refund, provided that the refund does not exceed the amount of the decrease in Virginia tax attributable to such change.
Because the Taxpayer filed the amended return within the one-year period set forth under Virginia Code § 58.1-1823 A (v), the return is considered to be timely filed. Accordingly, the Taxpayer’s amended return will be processed and the appropriate refunds, including refund interest, will be issued.
The Code of Virginia sections 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 about this determination, you may contact ***** in the Office of Tax Policy, Appeals and Rulings, at *****.
Sincerely,
Craig M. Burns
Tax Commissioner
AR/2242.M