Tax Type
Individual Income Tax
Description
Domicile
Topic
Persons Subject to Tax
Property Subject to Tax
Date Issued
04-02-1982
April 2, 1982
Re: §58-1118 Application/Individual Income Tax
Late Filing of Virginia Income Tax Returns
For 1977, 1978, and 1979
Dear ****************
This letter is in response to your correspondence received by this office on January 12, 1982, an application for correction of the Department's assessment of tax, penalty and interest for late filing of your Virginia individual income tax returns for 1977, 1978 and 1979.
A summary of your tax liability appears below:
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FACTS
You are a full time college student at the ***********but maintain your permanent address with your parents in Virginia. You have been a college student since August of 1976.
In February, 1977, you contacted the Department about your individual income tax liability to Virginia. Your letter states that, at that time, a Department employee advised you that since you were a full time college student living without Virginia, you were not required to file a Virginia income tax return. You acted upon this advice and were subsequently contacted by the Compliance Unit for nonfiling of returns for 1977, 1978 and 1979. In November of 1981, returns for these years were filed. On the basis of these returns, the Department rendered assessments in December of 1981 for 1977 and 1978 and in January of 1982 for 1979.
It is noted also that there is no evidence that individual income tax returns were filed by you in Maryland for the years in question. Moreover, Virginia returns for 1980 and 1981 were filed because as you state in your letter, you received financial assistance for college from Virginia and felt obligated to give something back to the state.
You ask that the assessment be voided or legally clarified. If it is determined that taxes are due, you request that all penalties be voided. In addition, an extension on the time of payment of any tax due is requested since while attending college large amounts of cash are not available to you.
DETERMINATION
It is the Department's position that you as a college student maintaining your permanent address with your parents in Virginia are a domiciliary resident of Virginia. This classification is set forth in the individual income tax instructions provided to taxpayers each year. See, e.g. the attached page of the 1977 instructions. Accordingly, you are subject to Virginia individual income taxation for the taxable years 1977 through 1979 and your 58-1118 application for relief from the assessments in question is denied.
Virginia Code § 58-45 does, however, give the Department discretionary authority to accept offers made in compromise of penalties imposed upon taxpayers. Under the facts in your case, the law does not permit any compromise of taxes or interest.
Therefore, you must pay all taxes ($*****) and interest ($ ******) now totaling $ *****and then may, if you wish, submit for the Department's consideration an offer in compromise to pay a reasonable part of the penalties assessed, the remainder to be abated. Such a letter should be addressed to:
W. H. Forst
State Tax Commissioner
Virginia Department of Taxation
P. O. Box 6-L
Richmond, Virginia 23282
State Tax Commissioner
Virginia Department of Taxation
P. O. Box 6-L
Richmond, Virginia 23282
Such an offer should be submitted within thirty days of the date of this letter; during that time period, no collections activities will be instituted.
In regard to your request for extension of the time for payment, the Department would consider a good faith payment within thirty days of the date of this letter with the remainder to be paid in equal monthly installments not to extend beyond September 1, 1982. The amount to be paid pursuant to an offer would be $*** for all the tax and interest plus a reasonable part of the $******of penalty due.
If you have any further questions about this matter, please do not hesitate to call ********** the member of my staff who has previously contacted you at
Sincerely,
W. H. Forst
State Tax Commissioner
Rulings of the Tax Commissioner