Tax Type
Individual Income Tax
Description
Jeopardy tax assessment
Topic
Taxpayers' Remedies
Date Issued
12-28-1984
December 28, 1984
Re: §58-1118 Application/1983 Jeopardy Income Tax
Dear ********************
This responds to your application of April 25, 1983, on behalf of the taxpayer, for correction of a jeopardy assessment of 1983 individual income taxes.
FACTS
On February 10, 1983, under the provisions of §58-151.0105 of the Code of Virginia, the department terminated the taxpayer's 1983 taxable year on January 25, 1983, and made a jeopardy assessment of individual income tax for that taxable period.
The assessment for 1983 was computed on the assumption that funds seized from the taxpayer in a drug raid by the Virginia State Police were one day's income. Furthermore, although the taxpayer had filed a 1980 income tax return, no returns had been filed for 1979 or 1981. Since the assessment was made, the taxpayer has filed returns for the taxable years- 1979, 1981, 1982 and 1983 years.
DETERMINATION
The taxpayer has shown to the satisfaction of the department that the funds seized by the police were after-tax withdrawals from the accounts of the taxpayer and his wife. Accordingly, the 1983 jeopardy assessment will be abated. In addition, the 1979 and 1981 returns filed by the taxpayer will now be processed. However, no refund will be issued on the 1979 return since the three-year period for application for refund expired prior to the filing of the return on April 12, 1984.
Sincerely,
W. H. Forst
State Tax Commissioner
Rulings of the Tax Commissioner