Tax Type
Individual Income Tax
Description
Refund statute of limitations
Topic
Statute of Limitations
Date Issued
05-28-1985
May 28, 1985
RE: Virginia Code Section 58.1-1821 Application
Individual Income Tax
Dear ****
This is in reply to your letter of December 27, 1984 in which you petition for relief of the department's decision to deny your claim for refunds for taxable years 1972 through 1979.
FACTS
You visited the Department of Taxation on April 30, 1976 to seek permission to extend the date for filing amended returns for taxable years 1972 through 1974, and your original return for taxable year 1975. Without an extension, the date for filing an amended 1972 return would have expired on the next day. During your visit, you entered into an agreement with the department to extend the date for filing the amended return for taxable year 1972 until December 31, 1976, and to extend the date for filing your original return for taxable year 1975 until October 29, 1976. The 1975 return was later timely filed.
You did not file the amended returns for taxable years 1972 through 1974 until April 30, 1981, when you also amended your 1975 and 1976 returns; as well as filed your original 1977 through 1980 returns. The department processed your 1977 through 1980 returns, but took no action on your refund claims for 1972 through 1976. In 1984, you filed amended returns claiming refunds for 1972 through 1980. The department processed your 1980 return, but took no action on your refund claims for 1972 through 1979. You now seek relief from the department's decision to deny these refunds.
DETERMINATION
Virginia Code Section 58.1-1823 provides that:
Any person filing a tax return required for any tax administered by the Department of Taxation may, within three years from the last day prescribed by law for the timely filing of the return, or within sixty days from the final determination of any change or correction in the liability of the taxpayer for any federal tax upon which the state tax is based, whichever is later, file an amended return with the Department. (Emphasis added.)
Clearly, the three year statutory period for filing amended returns for taxable year 1972 through 1976 had expired by the time that the amended returns were filed on April 30, 1981. You rely upon the agreement signed on April 30, 1976 to extend the statute of limitations. However, this agreement was only for taxable year 1972, and it only extended the time for filing until December 31, 1976. The department has no record of you taking any action after April 30, 1976 and before April 1981, to attempt to extend the time for filing amended returns. Likewise, your amended returns claiming a refund for taxable years 1977 through ]979 were filed more than "...three years from the last day prescribed by law for the timely filing of the return..." The department has acted upon all returns that were timely filed.
The department understands the circumstances of your case; however, without the statutory provisions to accept amended returns filed after the time required by law, I have no alternative other than to deny your application for correction.
Sincerely,
W. H. Forst
Tax Commissioner
RE: Virginia Code Section 58.1-1821 Application
Individual Income Tax
Dear ****
This is in reply to your letter of December 27, 1984 in which you petition for relief of the department's decision to deny your claim for refunds for taxable years 1972 through 1979.
FACTS
You visited the Department of Taxation on April 30, 1976 to seek permission to extend the date for filing amended returns for taxable years 1972 through 1974, and your original return for taxable year 1975. Without an extension, the date for filing an amended 1972 return would have expired on the next day. During your visit, you entered into an agreement with the department to extend the date for filing the amended return for taxable year 1972 until December 31, 1976, and to extend the date for filing your original return for taxable year 1975 until October 29, 1976. The 1975 return was later timely filed.
You did not file the amended returns for taxable years 1972 through 1974 until April 30, 1981, when you also amended your 1975 and 1976 returns; as well as filed your original 1977 through 1980 returns. The department processed your 1977 through 1980 returns, but took no action on your refund claims for 1972 through 1976. In 1984, you filed amended returns claiming refunds for 1972 through 1980. The department processed your 1980 return, but took no action on your refund claims for 1972 through 1979. You now seek relief from the department's decision to deny these refunds.
DETERMINATION
Virginia Code Section 58.1-1823 provides that:
Any person filing a tax return required for any tax administered by the Department of Taxation may, within three years from the last day prescribed by law for the timely filing of the return, or within sixty days from the final determination of any change or correction in the liability of the taxpayer for any federal tax upon which the state tax is based, whichever is later, file an amended return with the Department. (Emphasis added.)
Clearly, the three year statutory period for filing amended returns for taxable year 1972 through 1976 had expired by the time that the amended returns were filed on April 30, 1981. You rely upon the agreement signed on April 30, 1976 to extend the statute of limitations. However, this agreement was only for taxable year 1972, and it only extended the time for filing until December 31, 1976. The department has no record of you taking any action after April 30, 1976 and before April 1981, to attempt to extend the time for filing amended returns. Likewise, your amended returns claiming a refund for taxable years 1977 through ]979 were filed more than "...three years from the last day prescribed by law for the timely filing of the return..." The department has acted upon all returns that were timely filed.
The department understands the circumstances of your case; however, without the statutory provisions to accept amended returns filed after the time required by law, I have no alternative other than to deny your application for correction.
Sincerely,
W. H. Forst
Tax Commissioner
Rulings of the Tax Commissioner