Tax Type
Individual Income Tax
Description
Itemized deductions
Topic
Taxable Income
Date Issued
03-19-1984
March 19, 1984
Re: §58-1118 Application/Individual Income Tax
Dear ****
This will reply to your letter of December 28, 1983 in which you submit an application for correction of individual income tax assessed as the result of a compliance examination of your 1980 tax return.
Based upon the information before me, a copy of your schedule of itemized deductions was requested by the department during the course of a compliance examination of your 1980 income tax return. When a response was not obtained by the department within thirty days, an assessment of individual income tax and interest was issued.
The instant assessment was based upon your apparent failure to reduce your total itemized deductions by the amount of Virginia income taxes likely claimed as a deduction on your 1980 federal Schedule A. Such a reduction is mandated by § 58-151.013(d)(1) of the Code of Virginia, which states:
There shall be deducted (from Virginia taxable income) (l) The amount allowable for itemized deductions for federal income tax purposes...reduced by the amount of income taxes imposed by this State or any other taxing jurisdiction and deducted on such federal return . . .
Subsequent to the department's assessment of additional tax, you submitted a copy of your 1980 federal Schedule A. This document confirms that you failed to reduce your total itemized deductions of ***** by the amount of state tax claimed as a deduction on that schedule, Such reduction should properly have been made on line 34 of your 1980 Virginia tax return. Accordingly, the instant assessment appears to be correct and payable and I therefore find no basis for correction under Virginia Code § 58-1118.
Sincerely,
W. H. Forst
State Tax Commissioner
Rulings of the Tax Commissioner