Tax Type
Estate Tax
Description
Statute of limitations for refund
Topic
Payment and Refund
Statute of Limitations
Date Issued
05-11-1990
May 11, 1990
Re: §58.1-1821 Application; Estate Tax
§58.1-1823 Refund upon Filing an Amended Return
Dear ****
This is in response to your letter of February 12, 1990 in which you applied for a refund of estate taxes.
Facts
The Virginia estate tax return was filed and taxes paid in February of 1982. An audit of the federal estate tax return by the Internal Revenue Service led to adjustments to the federal taxable estate, and a closing letter was issued on August 22, 1988. An amended Virginia estate tax return claiming a refund was filed November 17, 1989. The amended return was based on the changes made to the federal return during the IRS audit.
The department denied the taxpayer's claim for refund, stating that the claim was barred by the statute of limitations. The taxpayer appeals this decision.
Discussion
The period for filing an amended return claiming a refund expires three years after the last day prescribed by law for the timely filing of the original return or, if later, 60 days after the final determination of any change or correction in the liability of the taxpayer for any federal tax upon which the state tax is based. Va. Code §58.1-1823. This limitation period applies to all taxes administered by the department.
In this case, the last day prescribed by law for the timely filing of the estate tax return was February 6, 1982; three years from that date was February 6, 1985. The Federal Estate Tax closing letter indicating the final determination of the federal tax liability was issued August 22, 1988; the sixty day period for filing an amended return based on this determination expired October 21, 1978.
The amended return was not filed until November 17, 1989, well after the expiration of the limitations period prescribed by law. Therefore the request for refund must be denied.
Although I appreciate the difficulties encountered in administering the estate, the law clearly imposes a time limit for filing an amended return claiming a refund. The law does not grant me any discretion to waive this requirement.
Accordingly, I must deny your request.
Sincerely,
W. H. Forst
Tax Commissioner
Rulings of the Tax Commissioner