Tax Type
Individual Income Tax
Description
Actual resident of Virginia; Nonfiler assessment
Topic
Persons Subject to Tax
Residency
Date Issued
07-31-1984
July 31, 1984
Re: § 58-1118 Application/1980 Individual Income Taxes
Dear ********
This responds to your letter of April 8, 1984, applying for relief from an assessment of individual income tax for 1980.
FACTS
The taxpayers claim to have always been domiciliary residents of North Carolina. They were actual residents of Virginia for July 1979 to July 1983 while the husband worked in Washington, D. C. They filed North Carolina income tax returns for taxable years 1979 through 1982. However, with the exception of 1980, no Virginia returns were filed. The department, through its nonfiler compliance program, generated an assessment for the years 1979 through 1982. The taxpayers question the authority of Virginia to tax their income that comes from sources outside Virginia and that remain outside Virginia, with the exception of income received from Washington, D. C. The taxpayers assert that penalty and interest should be assessed only on the income from Virginia and Washington, D. C. sources.
DETERMINATION
The Virginia taxable income of a resident is defined by Virginia Code § 58-151.013 as federal adjusted gross income with certain explicitly defined statutory modifications. There are no modifications given for income from sources outside of Virginia. Therefore, I have no choice but to deny your deduction from federal adjusted gross income for income from North Carolina sources, and to find that the department's assessment is correct.
Since you claim to be a North Carolina domiciliary resident, you should determine with that state whether or not you will be given a credit for taxes paid to Virginia.
Sincerely,
W. H. Forst
State Tax Commissioner
Rulings of the Tax Commissioner