February 23, 2021
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, 2015.
FACTS
The Taxpayer filed an amended 2015 Virginia individual income tax return on May 16, 2019, reporting an overpayment of income tax and requesting a refund. The Department denied the refund because the return was filed beyond the refund period allowed by the statute of limitations. The Taxpayer appeals the Department’s denial, contending the return was timely because she filed an amended federal return reporting a change in federal adjusted gross income within one year of filing the amended Virginia return.
DETERMINATION
Under Virginia Code § 58.1-311, if the amount of any individual taxpayer’s federal income tax reported on a federal income tax return for any taxable year is changed or corrected by the Internal Revenue Service (IRS), the taxpayer shall file an amended return reporting such change in federal taxable income within one year after the final determination of such change. Under Title 23 of the Virginia Administrative Code (VAC) 10-20-180 B, a final determination of a change in liability for federal tax includes payment or refund of any federal income tax.
The Taxpayer has provided documentation that shows an amended federal income tax return for the 2015 taxable year was filed on March 30, 2019, which resulted in the payment of a refund from the IRS. The Taxpayer’s 2015 amended Virginia return was filed on May 16, 2019, which was within one year of the filing of the amended federal return. Accordingly, the amended return should be processed as filed and the refund issued as appropriate.
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 regarding this determination, you may contact***** in the Office of Tax Policy, Appeals and Rulings, at *****.
Sincerely,
Craig M. Burns
Tax Commissioner
AR/3365.A