December 28, 2021
Re: § 58.1-1821 Application: Retail Sales and Use Tax
Dear *****:
This is in response to your letter submitted on behalf of ***** (the “Taxpayer”) in which you seek correction of the retail sales and use tax assessments issued for the period May 2016 through April 2019. I apologize for the delay in responding to your appeal.
FACTS
The Department audited the Taxpayer and issued assessments dated April 17, 2020 for the period noted above. The Taxpayer submitted an appeal of the audit assessment to the Department via U.S. mail pursuant to Virginia Code § 58.1-1821.
DETERMINATION
Virginia Code § 58.1-1821 states that “Any person assessed with any tax administered by the Department of Taxation may, within ninety days from the date of such assessment, apply for relief to the Tax Commissioner….” Title 23 of the Virginia Administrative Code (VAC) 10-20-165 B 1 provides that “the Department strictly enforces the 90-day limitations period for filing a timely administrative appeal. A taxpayer must file a complete appeal within 90 calendar days after the date of assessment.”
In this instance, the assessments issued to the Taxpayer are dated April 17, 2020. Based on the provisions on Virginia Code § 58.1-1821 and Title 23 VAC 10-20-165, the Taxpayer’s complete appeal must have been filed by July 16, 2020. The Taxpayer mailed the appeal to the Department via the U.S. mail. The appeal was postmarked on July 25, 2020. The Taxpayer’s appeal is not timely filed, in accordance with the aforementioned authorities. Accordingly, the Taxpayer’s application for correction is barred by the statute of limitations.
Revised bills, with interest accrued to date, will be mailed shortly to the Taxpayer. No further interest will accrue provided the outstanding assessments is paid within 30 days from the date of this letter.
The Code of Virginia section and regulation cited are available on-line at www.tax.virginia.gov in the Laws, Rules and Decisions section of the Department’s web site. If you have any questions about this response, you may contact ***** in the Department’s Office of Tax Policy, Appeals and Rulings, at *****.
Sincerely,
Craig M. Burns
Tax Commissioner
AR/3498P