Tax Type
Individual Income Tax
Description
Protective claim based on King v. Forst; Refunds of tax
Topic
Payment and Refund
Returns/Payments/Records
Date Issued
08-17-1992
August 17, 1992
Re: Protective Claim: Individual Income Tax
Dear*****************
This will reply to your letter of July 25, 1990 in which you filed a protective claim on behalf of your clients for refund for the taxable year 1986.
Your clients are residents of Virginia who own shares in an S corporation that was subject to the District of Columbia franchise taxes for the taxable year 1986. The protective claim for refund was filed on July 25, 1990. The protective claim for refund was based upon the decision of the Virginia Supreme Court in the case of Llewellyn King v. W. H. Forst, State Tax Comm'n, 239 Va. 557(1990).
Virginia Code §58.1-1824 requires that a protective claim be filed within three years from the last day the taxpayer could have timely filed his return. A calendar year taxpayer is required to file his individual tax return on or before May 1 of the year following the taxable year. Va. Code §58.1-341.
Assuming your clients were a calendar year taxpayer for the tax year 1986, they would have had to file their 1986 tax return no later than May 1, 1987. To be timely filed, a protective claim for refund for the taxable year 1986 (or an amended return for taxable year 1986) would have had to have been filed on or before May 1, 1990. Unfortunately, your clients' protective claim was not filed until July 25, 1990 which was several months after the allowable statutory time period.
Accordingly, your clients' protective claim for refund is hereby denied. I have no statutory authority to allow a refund.
Sincerely,
W. H. Forst
Tax Commissioner
Rulings of the Tax Commissioner