Tax Type
Individual Income Tax
Description
Refunds of tax; Claims outside limitations period
Topic
Returns and Payments
Date Issued
05-05-1995
May 5, 1995
Re: §58.1-1821 Application: Individual income tax
Dear*****************
This will respond to your letter of June 17, 1994, regarding the refund claims filed by your client, ***********(the "Taxpayer"), for the years 1987 through 1989.
FACTS
During the taxable years 1987 through 1990, the Taxpayer commuted daily to work in Virginia from the state of Maryland. The Taxpayer did not maintain a place of abode in Virginia during these years, nor was the Taxpayer ever an actual or domiciliary resident of Virginia anytime during these years. The Taxpayer's only source of income in Virginia during these years was from salaries and wages.
You state the Taxpayer never completed or signed a Virginia withholding exemption certificate for his employer. Nevertheless, the employer withheld Virginia tax from the Taxpayer's pay, as is required of a Virginia employer when an employee fails to complete and give a withholding certificate. Had the Taxpayer completed this document, he would have been exempt from Virginia withholding tax due to Virginia's reciprocity with Maryland.
On September 3,1993, the Taxpayer filed returns claiming a refund for the Virginia income tax withheld during the years 1987 through 1990. The department promptly issued a refund for 1990; however, denied the refund claims for 1987 through 1989 because the requests were outside the statute of limitations. You contest this determination, and believe that the claims were in fact filed on a timely basis.
DETERMINATION
-
- Code of Virginia §58.1-499 provides, in pertinent part:
In the case of any overpayment of any tax, ... whether by reason of excessive withholding, overestimating and overpaying estimated tax, error on the part of the taxpayer ... the Tax Commissioner shall order a refund of the amount of the overpayment to the taxpayer.
...
...nor shall any refund of any amount under this section be made, whether on discovery by the Department or on written application of the taxpayer, if such discovery is not made or such written application is not received within three years from the last day prescribed by law for the timely filing of the return... (Emphasis added.)
- Code of Virginia §58.1-499 provides, in pertinent part:
The Taxpayer's claims for refund were brought to the department's attention on September 3,1993, the date on which the Taxpayer filed returns. Because Virginia law requires claims for refund to be filed within three years from the due date of the return, the department only has the authority in the instant case to make a refund with respect to 1990. Unfortunately, the department has no alternative but to deny the Taxpayer's request for a refund for the years 1987 through 1989.
Accordingly, your application for relief cannot be granted. Should you have additional questions regarding this matter, please contact*****************.
-
-
-
-
-
-
-
-
-
-
- Sincerely,
Danny M. Payne
Tax Commissioner
- Sincerely,
-
-
-
-
-
-
-
-
-
OTP/8260L
Rulings of the Tax Commissioner