Document Number
22-71
Tax Type
Retail Sales and Use Tax
Description
Administration : Appeal - Filing Requirements, Deadline for Filing
Topic
Appeals
Date Issued
04-13-2022

April 13, 2022

Re:    § 58.1-1821:  Retail Sales and Use Tax 
    
Dear *****:

This is in response to your letter in which you protest the retail sales and use tax assessment issued to ***** (the “Taxpayer”), for the audit periods February 2013 through June 2019.  

FACTS

The Taxpayer was audited for the periods at issue and an assessment was issued for tax and interest. The Taxpayer simultaneously submitted an intent to appeal and an offer in compromise based on doubtful collectibility. When the Taxpayer failed to submit a complete or timely appeal, the Department issued a letter, dated June 21, 2021, indicating a complete appeal had not been received and the case was closed. After its offer in compromise was rejected in September 2021, the Taxpayer submitted a letter indicating it would now like to submit an appeal.

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 August 22, 2019. Based on the provisions in Virginia Code § 58.1-1821 and Title 23 VAC 10-20-165, the Taxpayer’s complete appeal must have been filed by November 20, 2019. The Taxpayer’s correspondence was postmarked on October 6, 2020, well beyond the 90 day period permitted by statute. Accordingly, the Taxpayer’s application for correction is barred by the statute of limitations.
 
Based on this determination, the assessment is correct. An updated bill, with interest accrued to date, will be mailed shortly to the Taxpayer. No further interest will accrue provided the outstanding assessment is paid within 60 days from the date of this letter.  

The Code of Virginia section and regulation cited, along with other reference documents, 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/3965.G
 

Rulings of the Tax Commissioner

Last Updated 08/08/2022 11:58