Tax Type
Corporation Income Tax
Description
Statute of limitations for refund
Topic
Payment and Refund
Statute of Limitations
Date Issued
04-28-1993
April 28, 1993
Re: Va. Code §58.1-1821R Application: Corporate Income Tax
Dear**********
This will reply to your letter dated August 28, 1992 in which you request abatement of corporate income tax assessed against ***** (the "Taxpayer") for taxable years ending August 31, 1979 - 1982 and the taxable year ending August 31, 1987.
FACTS
As a result of a lawsuit involving the Taxpayer and the Internal Revenue Service (resulting from an audit for the fiscal years 1979 through 1987), the Taxpayer filed amended Virginia corporation income returns. In the amended returns, the Taxpayer requested a refund for 1979. Upon audit, the Taxpayer was denied the refund thereby causing a tax deficiency.
DETERMINATION
The applicable portion of Virginia Regulation (VR) 630-1-1823 provides that amended returns claiming a refund must be filed within 60 days from the date of the final determination of any change or correction in the federal tax liability of the taxpayer upon which the Virginia tax is based.
Pursuant to VR 630-1-1823(B)(2), the receipt of an assessment or other notice that the amount of deficiency or overassessment stated on federal form 870 or similar form has been agreed to by the IRS constitutes a final determination for Virginia tax purposes.
The information provided indicates that the Tax Court entered final orders for the above-referenced tax years on March 19, 1990. The refund year was final thirty (30) days after the Tax Court's order. For various reasons, the amended returns were not filed until September 20, 1991. This was more than a year after the 60 day limit imposed by Virginia law. Because the amended return was not filed within the prescribed statutory period, there was no overpayment to either be refunded or used to offset the tax liability for the other disputed taxable years.
You state that the federal audits and resulting adjustments required the filing of a substantial number of amended returns in a large number of states. You contend that the late filing of the amended return for the refund was not due to lack of consideration of the importance of the limitations period, but due to the complexity and time involved in correctly reporting changes to the various states; therefore the refund should be allowed. The Department appreciates the good faith effort taken by the Taxpayer to file the various returns necessary in a timely manner. Unfortunately, I am bound by the clear statutory language of Virginia Code § 58.1-1823 which provides that any amended return claiming a refund must be filed within 60 days of the final determination. Little discretion is provided by the Virginia Code to modify the clear dictates of this section regardless of the existence of an apparent unusual reporting hardship.
Accordingly, your request for refund is denied.
Sincerely,
W. H. Forst
Tax Commissioner
OTP/6416L
Rulings of the Tax Commissioner