Tax Type
Retail Sales and Use Tax
Description
Statute of limitations; Failure to file return
Topic
Collection of Delinquent Tax
Date Issued
05-19-1993
May 19, 1993
Re: §58.1-1821 Application: Sales and Use Tax
Dear***********
This will reply to your letter of October 30, 1992 in which you seek correction of a sales and use tax assessment for the period of February, 1986 through January, 1992.
FACTS
is in the business of selling film, developer, and supplies for X-Ray equipment. The Taxpayer also services X-Ray equipment. The Taxpayer makes deliveries, via their own truck, and provides equipment service to customers located in Virginia. Prior to the audit, the Taxpayer was not registered for the collection of the Virginia sales tax. Due to the fact the Taxpayer was required to collect and remit Virginia sales tax, and failed to do so, the audit was extended back six years. The Taxpayer is taking exception to the six year statute of limitation being imposed.
The Taxpayer has submitted documentation showing where some of his Virginia customers have accrued and remitted the use tax on supplies sold to them by the Taxpayer. The Taxpayer is requesting That such items be removed from the audit.
DETERMINATION
Va. Code §58.1-634 provides for the period of limitations as it relates to the Virginia retail sales and use tax and states the following:
-
- The taxes imposed by this chapter shall be assessed within three years from the date on which such taxes became due and payable. In the case of a false or fraudulent return with intent to evade payment of the taxes imposed by this chapter, or a failure to file a return, the tax may be assessed... at any time within six years from such date.
- The taxes imposed by this chapter shall be assessed within three years from the date on which such taxes became due and payable. In the case of a false or fraudulent return with intent to evade payment of the taxes imposed by this chapter, or a failure to file a return, the tax may be assessed... at any time within six years from such date.
With regard to the items which you have provided documentation that the Virginia use tax was accrued and remitted by your customers, according to the audit workpapers, all such items that fall within the audit period in question, have been removed from the audit. Should you have any additional information which substantiates Virginia use tax being remitted by your customers, I will be glad to review such documents.
Based on the above, I find no basis for revising the audit. If you should have any further questions, please feel free to contact this office.
Sincerely,
W. H. Forst
Tax Commissioner
OTP/6533K
Rulings of the Tax Commissioner