Document Number
20-42
Tax Type
Individual Income Tax
Description
Residency: Domicile - Case Decided
Topic
Appeals
Date Issued
03-18-2020

March 18, 2020

Re:  § 58.1-1821 Application:  Individual Income Tax

Dear *****:

This will reply to your letter in which you seek correction of the assessment of individual income tax issued to ***** (the “Taxpayer”) for the taxable year ended December 31, 2016.

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 2016 taxable year.  A review of the Department’s records showed that the Taxpayer had not filed a return.  The Department requested additional information from the Taxpayer in order to determine if her income was taxable in Virginia.  Based on the information provided by the Taxpayer and other information available, the Department determined that the Taxpayer was taxable as a domiciliary resident of Virginia, and an assessment was issued.  The Taxpayer appealed, contending she was a resident of ***** (Country A).  

DETERMINATION

The Taxpayer was also assessed Virginia income tax on the basis that she was a domiciliary resident of Virginia for the 2015 taxable year.  The Taxpayer appealed to the Department.  In Public Document (P.D.) 19-83 (8/2/2019), the Department concluded that the Taxpayer could not have re-established domicile in Virginia until she returned to the United States and began residing in Virginia again in 2017.  As a result, the assessment was abated.

Shortly before P.D. 19-83 was issued, the Department issued an assessment to the Taxpayer for the 2016 taxable year as well.  Although P.D. 19-83 did not specifically address the 2016 taxable year because an appeal had not yet been filed for that year, the Department’s determination clearly indicates that the Taxpayer was not a resident of Virginia in 2016.  Accordingly, the assessment will be returned to the audit staff for abatement.

The Code of Virginia section and public document 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 Office of Tax Policy, Appeals and Rulings, at *****.

Sincerely,

 

Craig M. Burns
Tax Commissioner

AR/2154.M

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Last Updated 07/28/2020 11:57