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 March 2, 1992, 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 for correction of an erroneous assessment under Va. Code §§58.1-1821 and 58.1-1823.
FACTS
The Virginia estate tax return for the decedent was originally due November 18, 1986. An extension of time to file (until November 18, 1988) was granted, and the return was filed on November 2, 1988. The estate was subsequently audited by another state, which imposed additional taxes on certain property originally included in the Virginia return. The taxes were paid, and a claim for refund of Virginia taxes paid on the disputed property was filed on December 9, 1991.
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.
Even if the 60 day exception in Va. Code §58.1-1823 were applicable (which it is not), the amended return was not filed within this period. In your letter, you contend that the taxes owed to the other state were paid in October 1991. However, documentation included with your letter indicates that payment was made on September 25, 1991, with interest computed through October 4, 1991. The amended return was not filed until December 9, 1991, 75 days after September 25, 1991.
In this case, the last day prescribed by law for the timely filing of the estate tax return was November 18, 1988, after taking into account the extension that was granted. Three years from that date was November 18, 1991. The amended return for refund was not filed until December 9, 1991, well after the expiration of the three year limitations period prescribed by law.
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. Because the amended return was not filed within the statutory limitations period, I have no alternative but to deny the refund request.
Sincerely,
W. H. Forst
Tax Commissioner
TPD/6051F
Rulings of the Tax Commissioner