May 11, 2026

Re:    § 58.1-1821 Application: Retail Sales and Use

Dear *****:

    This is in response to your letter submitted on behalf of ***** (the “Taxpayer”) in which you seek relief from the retail sales and use tax and income tax withholding assessed against the Taxpayer as an officer of ***** (the “Corporation”).

FACTS

    The Corporation was assessed tax, penalty, and interest for unpaid sales and use and withholding taxes for various periods from January 2019 through July 2022. When the Corporation failed to satisfy the assessments, the Department issued penalties in the amount of the unremitted tax, commonly referred to as converted assessments, to the responsible officers. The Taxpayer filed an application for correction contending that he was not in a position to prevent untimely payment of taxes and filing returns.

    The Taxpayer also recognized that his application was filed after the deadline for seeking a correction of an assessment. He alleges that he did not receive the assessment timely because he was no longer living at the address to which it was mailed.

ANALYSIS

    Virginia Code § 58.1-1821 states that “[a]ny 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 “[t]he 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.”

    The date of the Taxpayer’s assessments was February 16, 2024. The Taxpayer’s application for correction is dated May 21, 2024. In order for the application to have been timely filed, it would have had to have been mailed to or received by the Department on or before May 16, 2024.

    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 a taxpayer at their last known address. According to Department records, the notice was mailed in February 2024 to the Taxpayer’s most current address on file. The address was subsequently updated on July 29, 2024. While it is unfortunate that the Taxpayer failed to receive the assessments, the Department fulfilled its statutory obligation by mailing the notice to the Taxpayer’s last known address.

    Accordingly, the Taxpayer failed to file his application for correction with in the time permitted by law and it, therefore, will not be considered by the Department. As such, the converted assessments against the Taxpayer in accordance with Virginia Code § 58.1-1813 remain due and payable.

    The Code of Virginia sections cited are available online at law.lis.virginia.gov. If you have any questions regarding this determination, you may contact ***** in the Office of Tax Policy and Legal Affairs, Tax Adjudication and Resolution Division, at ***** or *****.

                                                                                                                   Sincerely,

                    
                                                                                                                  Kristin L. Collins
                                                                                                                  Tax Commissioner
                                                                                                                  Commonwealth of Virginia
 

AR 5185.F