Tax Type
Corporation Income Tax
Description
DISC income
Topic
Allocation and Apportionment
Date Issued
06-16-1986
June 16, 1986
Re: Corporate Income Tax Assessment
For the years 1976 and 1977
Dear ****************
This will acknowledge receipt of your letter to ************* dated April 21, 1986 in which you provided additional information concerning the above captioned audit.
In protest, you took exception to the inclusion in net income subject to apportionment of all income of ************** (DISC) and the inclusion in the numerator of the sales factor of sales of tangible personal property shipped from Virginia to certain foreign destinations.
As you are aware, the Disc issue is being litigated and no final determination has been rendered at this time. If you have not filed a protective claim under § 58.1-1824, you must pay the tax and file such a claim in order to preserve your judicial remedies.
The information you furnished with your April 21, 1986 letter substantiates nexus with foreign countries and discloses that the numerator of the sales factor shall be adjusted to exclude sales of tangible personal property shipped from Virginia to foreign destinations. Adjustments to the factors and tax due are set forth in the enclosed schedules.
If you have any questions, please do not hesitate to let me know. Revised assessments will be issued in the near future and should be paid upon receipt.
Sincerely,
W. H. Forst
Tax Commissioner
Rulings of the Tax Commissioner