Tax Type
Estate Tax
Description
Amended return claiming a refund
Topic
Payment and Refund
Date Issued
12-07-1988
December 7, 1988
Re: §58.1-1821 Application; Virginia Estate Tax
§58.1-906 Amended Estate Tax Return
§58.1-1823 Amended Return Claiming a Refund
Dear******************
This is in response to your filing an amended return requesting a refund of Virginia estate tax. Your refund request has been referred to this office for handling as an administrative application for correction of an erroneous assessment.
Facts
The decedent was a resident of another state who owned real estate and tangible personal property in Virginia. The original Virginia estate tax return properly reported the Virginia tax liability of a nonresident based on the federal estate tax return as filed. After an audit by the I.R.S. the gross estate was substantially increased and an amended Virginia estate tax return was filed to report the increase. However, the additional tax paid with the return was calculated as if the decedent had been a resident of Virginia and all property was located in Virginia. Shortly afterward, a second amended return was filed which reported the correct Virginia tax liability, provided proof that additional tax had been paid to Florida, and requested a refund of the excess Virginia tax paid.
Determination
Under §58.1-1823 an amended return claiming a refund must be filed within three years of the due date of the original return or, if later, within 60 days of the final determination of a change in federal tax liability as defined in regulation VR 630-1-1823 (copy enclosed). The second amended return was filed more than three years after the due date of the original return, five months after the date of the "Estate Tax Closing Letter." After reviewing the facts and the applicable law, I have concluded that I have no alternative but to deny the refund requests because the amended returns were filed more than three years after the due date of the return and more than 60 days after a change in federal tax liability.
Sincerely,
W. H. Forst
Tax Commissioner
Rulings of the Tax Commissioner