Tax Type
Individual Income Tax
Description
Refund statute of limitations
Topic
Payment and Refund
Returns/Payments/Records
Statute of Limitations
Date Issued
07-09-1991
July 9, 1991
Re: §58.1-1821 Application: Individual Income Tax
Dear***************
This will reply to your letter dated December 27, 1990, in which you protest the tax assessment made by the department in the amount of**************for the taxable year 1986.
FACTS
You originally filed Virginia income tax returns for taxable years 1984. 1985 and 1986 on May 1, 1990, on each of the returns for 1984 and 1985, you requested that the overpayment of tax be credited to the next year's estimated payments.
Because the 1984 and 1985 income tax returns were not filed with the department within the statute of limitations period, they were not accepted by the department: therefore, the overpayments reflected on each of these returns was not available for credit toward the 1986 estimated tax. As a result, the department has assessed the additional tax, referenced above, for taxable year 1986.
DETERMINATION
Pursuant to Va. Code §58,1 -499, no overpayment of tax will be refunded unless the individual income tax return requesting such overpayment is filed "within three years from the last day prescribed by law for the timely filing of the return. or within sixty days from 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, whichever is later."
The original due dates for income tax returns for taxable years 1984 and 1985 were May 1, 1985 and 1986, respectively. Therefore, in order for the claims for refund to be considered timely filed, the returns would have been required to have been filed by May 1, 1988 and 1989, respectively.
Based upon the foregoing, your 1984 and 1985 income tax returns were not filed within the statute of limitations period for obtaining a refund (or consequently, the optional credit against the ensuing years' estimated income tax). Therefore, no cumulative credit for overpayments for these years will apply to your 1986 estimated tax. The assessment for additional income taxes for 1986. which is now due and payable is correct.
Sincerely,
W. H. Forst
Tax Commissioner
Rulings of the Tax Commissioner