Tax Type
Corporation Income Tax
Description
Adjustment for DISC income
Topic
Computation of Income
Date Issued
05-12-1986
May 12, 1986
Re: Section 58.1-1821 Application/Corporation Income Tax
Section 58.1-446 Adjustment for DISC
Dear **********************
In your letter of February 25, 1986 you protect the assessment of additional tax attributable to inclusion of DISC income for 1982 and 1983.
In a September 10 1984 decision in the General Electric case, the court ruled against the Department's position on DISC income. The Department has appealed this decision to the Virginia Supreme Court. Accordingly, there is no final decision in the General Electric case at this time.
Please be advised that you may preserve your Judicial rights by filing 8 protective claim for refund under Section 58.1-1824 after payment of the assessment. Pursuant to that section I would be able to hold your refund claim without action pending a final decision in General Electric.
Accordingly, your application for correction of the assessments dated February 13, 1986 is denied.
Sincerely.
W. H. Forst
Tax Commissioner
Rulings of the Tax Commissioner