July 22, 2026
Re: § 58.1-1821 Application: Individual Income Tax
Dear *****:
This will respond to your letter in which you seek correction of the individual income tax assessment 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. When a response was not received, the Department issued an assessment. The Taxpayer submitted an application for correction, contending she did not live in Virginia during the 2016 taxable year.
DETERMINATION
Deadline for Filing Appeals
Virginia Code § 58.1-1821 states, “Any person assessed with any tax administered by the Department of Taxation may, within 90 days from the date of such assessment, apply for relief to the Tax Commissioner. Such application shall be in the form prescribed by the Department and shall fully set forth the grounds upon which the taxpayer relies and all facts relevant to the taxpayer’s contention.” Pursuant to Title 23 of the Virginia Administrative Code (“VAC”) 10-20-165, a complete appeal must be filed with the Department within 90 days from the date of assessment. In addition, Virginia Code § 58.1-1820 provides that assessments made by the Department are deemed to be made when a written notice of assessment is mailed to the taxpayer’s last known address.
The assessment for the 2016 taxable year was issued on November 18, 2019. The Taxpayer filed the present application for correction with the Department in August 2025, well after the 90-day statute of limitations had expired.
Taxation of Virginia Residents
The statute of limitations issue notwithstanding, the Department will explain the bases for the assessment for informational purposes. Virginia Code § 58.1-301 provides, with certain exceptions, that the terminology and references used in Title 58.1 of the Code of Virginia will have the same meaning as provided in the Internal Revenue Code (“IRC”) unless a different meaning is clearly required. Conformity does not extend to terms, concepts, or principles not specifically provided in the Code of Virginia. For individual income tax purposes, Virginia conforms to federal law, in that it starts the computation of Virginia taxable income (“VTI”) with federal adjusted gross income (“FAGI”). Income properly included in the FAGI of a Virginia resident is subject to taxation by Virginia, unless it is specifically exempt as a Virginia modification pursuant to Chapter 3 of Title 58.1 of the Code of Virginia.
Further, Virginia Code § 58.1-341 provides that a Virginia resident who is required to file a federal income tax return is also required to file a Virginia income tax return, unless the resident is exempt from filing under Virginia Code § 58.1-321. When a resident does not file a proper Virginia return, IRC § 6103(d) authorizes the Department to obtain information from the IRS that will help in determining the resident’s tax liability. See Public Document (P.D.) 14-33 (3/7/2014) and P.D. 24-86 (9/13/2024).
In this case, it appears that the Taxpayer was a resident of Virginia for the taxable year at issue, because she reported a Virginia mailing address to a payor. As such, she is subject to Virginia income tax and required to file a Virginia resident income tax return if she had sufficient income to exceed the filing threshold.
Based on the information the Department received from the IRS, the Taxpayer had income reported on Form 1099-MISC for the 2016 taxable year. The total amount of income exceeded the filing threshold each year, and the assessment was based on such amount.
CONCLUSION
The Department is limited by statutory periods during which a taxpayer can pursue an administrative remedy with the agency. The Taxpayer failed to timely file an application for correction of the assessment for the taxable year at issue. Even if she had, the Department’s assessment was based on information obtained by the IRS as permitted under Virginia law, and the Taxpayer has not provided any objective evidence that the information was incorrect.
Based on the facts presented, the Department finds no basis to abate the assessment. Therefore, the assessment issued for the taxable year ended December 31, 2016, remains due and payable. The Taxpayer will receive updated bills that will include accrued interest to date. The Taxpayer should remit the balance due within 30 days of the bill dates to avoid the accrual of additional interest and possible collection actions.
The Code of Virginia section and regulation cited are available online at law.lis.virginia.gov. If you have any questions regarding this response, you may contact ***** in the Office of Legal Affairs, Tax Adjudication and Resolution Division, at ***** or *****.
Sincerely,
Kristin L. Collins
Tax Commissioner
Commonwealth of Virginia
AR 5280.Q