Tax Type
Estate Tax
Description
Refund statute of limitations
Topic
Payment and Refund
Statute of Limitations
Date Issued
06-23-1992
June 23, 1992
Re: §58.1-1821 Application; Estate Tax
Dear**************:
This will reply to Your letter of September 16, 1991, in which you protest the denial of a refund of estate tax for the Estate of *********** (the "Taxpayer"). We have treated your letter as an application f or correction of an erroneous assessment under Va. Code §§58.1-1821 and 58.1-1823.
FACTS
The Virginia estate tax return, originally due April 7, 1987, was filed on October 7, 1987, after two filing extensions were granted by the Internal Revenue Service. Subsequent to the filing of the return, it was discovered in the course of resolving some issues regarding the transfer of certain interests in oil and mineral rights that these assets were required to be probated in another state and inheritance tax was paid to the state on those assets. An amended Virginia estate tax return claiming a refund was filed on January 26, 1991. The amended return was based on the allocation of the property, on which tax was originally paid to Virginia, to the other state.
The department denied the taxpayer's claim for refund because it was barred by the statute of limitations. You protest the denial of the refund.
DETERMINATION
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.
See Va. Code §58.1-1823. In this case, there was no change in federal tax liability, but only a change in the allocation of property between states. Therefore, the 60 day limitations period is not applicable.
In this case, the last day prescribed by law for the timely filing of the estate tax return was October 7, 1987, after taking into account the two extensions that were granted. Three years from that date was October 7, 1990. The amended return for refund was not filed until January 26, 1991, 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 refund request.
Sincerely,
W. H. Forst
Tax Commissioner
TPD/5651F
Rulings of the Tax Commissioner