May 26, 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 assessments issued to you (the “Taxpayer”) for the taxable years ended December 31, 2022, through 2024.

FACTS

The Taxpayer filed Virginia resident income tax returns for the 2022 through 2024 taxable years claiming deductions on federal Schedule C. Under audit, the Department requested documentation to support the deductions. When no response was received, the Department disallowed the deductions and issued assessments. The Taxpayer applied for correction, contending the Department lacks the authority to adjust amounts reported on Schedule C.

DETERMINATION

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 assessments were issued on October 22, 2025. Accordingly, the last day to file a timely appeal was January 20, 2026. The Taxpayer’s appeal was received by the Department on February 24, 2026, after the 90-day period for filing an appeal under Virginia Code § 58.1-1821 had expired.

Because the appeal was not timely filed, the appeal is denied. The assessments remain due and payable. An updated bill will be issued which will include accrued interest to date. The Taxpayer should remit the balance due within 30 days of the bill date to avoid the accrual of additional interest and possible collections actions.

The Code of Virginia section and regulation cited are available online at law.lis.virginia.gov. If you have any questions regarding this determination, 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 5516.H