Tax Type
Corporation Income Tax
Description
Allocation and apportionment; Missing Schedule A
Topic
Collection of Tax
Date Issued
11-17-1994
November 17, 1994
Re: §58.1-1821 Application:
Dear***********
This will reply to your letter of April 27, 1994 in which you contested the assessment of additional corporate income taxes to******** (the "Taxpayer") for the taxable years ended January 31, 1991, 1992 and 1993.
FACTS
The Taxpayer filed Virginia returns as a multi-state corporation, entitled to allocate and apportionment its income in accordance with Code of Virginia §58.1-405, et seq. Because the Taxpayer's Virginia returns did not contain Virginia Schedule A reflecting apportionment data, the department assessed the Taxpayer for tax based on 100% of their Virginia taxable income.
DETERMINATION
The Taxpayer has provided the department with Schedule A's for the taxable years in question. Accordingly, the assessments have been abated.
It is incumbent upon taxpayers to file a complete and accurate return. Where a taxpayer is taxable in another state, the department requires that Schedule A be completed and attached to the return. Its is not adequate to simply enter the apportionment factor directly on page one of the Virginia return.
Sincerely,
Danny M. Payne
Tax Commissioner
OTP/8068M
Rulings of the Tax Commissioner