August 24, 2021
Re: § 58.1-1821 Appeal: 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, 2016.
FACTS
The Taxpayer filed her 2016 Virginia individual income tax return in August 2020 claiming a refund. The Department denied the refund because the return was filed beyond the statute of limitations for claiming a refund. The Taxpayer appeals, asking for the statute of limitations to be waived because of physical and mental health conditions she developed in 2015.
DETERMINATION
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 . . . [Emphasis added.]
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 2016 individual income tax return was May 1, 2017. As such, the return was required to be filed by May 1, 2020, in order to receive a refund for the 2016 taxable year. The Taxpayer’s original 2016 income tax return was not filed until August 2020, after the statute of limitations had expired.
The Taxpayer cites her physical and mental health conditions as prohibiting her ability to timely file her return. Virginia Code § 58.1-341 F provides that an individual who is unable to make a return because of a disability has the responsibility of having such return filed by a fiduciary or duly authorized agent. Thus, Virginia law addresses the requirements of filing returns for taxpayers who have disabilities. While a severe illness or medical condition may be considered a disability for purposes of Virginia Code § 58.1-341 F, the statute does not provide for the suspension of the statute of limitations for an individual who is mentally or physically disabled. See Public Document (P.D.) 10-204 (9/2/2010).
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, although I empathize with your difficult circumstances, I cannot grant your request for a refund of the overpayment of individual income tax for the taxable year ended December 31, 2016.
The Code of Virginia sections 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 determination, you may contact ***** in the Office of Tax Policy, Appeals and Rulings, at *****.
Sincerely,
Craig M. Burns
Tax Commissioner
AR/3721.B