Tax Type
Individual Income Tax
Description
Disallowed credits, no record that certain returns were ever filed by Taxpayers
Topic
Credits
Date Issued
03-15-1985
March 15, 1985
RE: §58.1-1821 Application/Individual Income Tax
Dear ****
This will reply to your letter of February 18, 1985 on behalf of ***** ("Taxpayers"), in which you request reconsideration of our determination of November 19, 1984 in the above referenced case.
Facts
Based on overpayment credits claimed from taxable years 1976 and 1977, for which there is no record of returns having been filed, Taxpayers claimed an overpayment credit of ****** against their 1978 tax liability. This credit was disallowed by the Department, and a refund of $**** was issued. Taxpayers continued to compute overpayment credits for succeeding taxable years based in part on the credit claimed and disallowed by the Department in 1978. Therefore, while Taxpayers showed $**** to be in their estimated account, the Department's records showed $****. Accordingly, a tax deficiency of $**** was found and an assessment was issued.
Determination
As stated above, there is no record that 1976 or 1977 returns were ever filed by Taxpayers. There being no additional proof of any such returns being filed by Taxpayers, the overpayment credits claimed for such tax years cannot be allowed. Furthermore, Taxpayers were put on notice of the Department's disallowance of their claimed overpayment credits when they received a refund check based on the 1978 return. Nor do the copies of the cancelled checks representing estimated tax payments for 1976 and 1977 prove that Taxpayers. ever filed returns for those tax years.
Based on the foregoing, and my determination of November 19, 1984, I find no basis to abate the 1980 assessment or make any adjustment to Taxpayer's overpayment credit.
Sincerely,
W. H. Forst
Tax Commissioner
RE: §58.1-1821 Application/Individual Income Tax
Dear ****
This will reply to your letter of February 18, 1985 on behalf of ***** ("Taxpayers"), in which you request reconsideration of our determination of November 19, 1984 in the above referenced case.
Facts
Based on overpayment credits claimed from taxable years 1976 and 1977, for which there is no record of returns having been filed, Taxpayers claimed an overpayment credit of ****** against their 1978 tax liability. This credit was disallowed by the Department, and a refund of $**** was issued. Taxpayers continued to compute overpayment credits for succeeding taxable years based in part on the credit claimed and disallowed by the Department in 1978. Therefore, while Taxpayers showed $**** to be in their estimated account, the Department's records showed $****. Accordingly, a tax deficiency of $**** was found and an assessment was issued.
Determination
As stated above, there is no record that 1976 or 1977 returns were ever filed by Taxpayers. There being no additional proof of any such returns being filed by Taxpayers, the overpayment credits claimed for such tax years cannot be allowed. Furthermore, Taxpayers were put on notice of the Department's disallowance of their claimed overpayment credits when they received a refund check based on the 1978 return. Nor do the copies of the cancelled checks representing estimated tax payments for 1976 and 1977 prove that Taxpayers. ever filed returns for those tax years.
Based on the foregoing, and my determination of November 19, 1984, I find no basis to abate the 1980 assessment or make any adjustment to Taxpayer's overpayment credit.
Sincerely,
W. H. Forst
Tax Commissioner
Rulings of the Tax Commissioner