Tax Type
Individual Income Tax
Description
Technical fees; Foreign source income subtraction
Topic
Subtractions and Exclusions
Date Issued
11-03-1986
November 3, 1986
Re: Foreign Source Income Meeting
Dear *********************
Reference is made to your October 14, 1986 meeting with ***********, Director of the Tax Policy Division and members of his staff during which time ******* explained to me that you expounded upon the argument that you raised in your letter of July 21, 1986. Basically you disagree with the department's position regarding the definition of "technical fees" as defined in the Virginia Individual Income Tax Regulations and in my determination letter dated July 11, 1986. You feel that our regulatory definition is in conflict with the applicable statute, Virginia Code §58.1-302.
While the department understands your position, we do not agree. We stand firm on our position, as it is set forth in the Virginia Individual Income Tax Regulations and in the determination letter dated July 11, 1986. As explained at the meeting, the department's position is not in conflict with the applicable statute and accurately reflects the intent of the legislature in enacting the legislation that created the Virginia foreign source income subtraction (1981 Acts of Assembly, Chapter 402, Senate Bill 641).
As you indicated, your next route of appeal is an application for correction of erroneous assessment to the circuit court (Virginia Code §58.1-1825). I remind you that in order for the court to hear your petition, the assessments must be paid in full.
We appreciate your taking the time to meet with the Tax Policy Division staff.
Sincerely,
W. H. Forst
Tax Commissioner
Related Documents
Rulings of the Tax Commissioner