Tax Type
Individual Income Tax
Description
Taxes paid by resident to New York
Topic
Credits
Date Issued
05-09-1995
May 9, 1994
Re: §58.1-1821 Application: Individual Income Tax
Dear**************
This will reply to your letter of November 2,1994, in which you protest the reduction of a credit for income tax paid to New York claimed by your clients,*************(the "Taxpayers"), for taxable year 1991.
Enclosed you will a copy of a recent ruling issued by the department concerning Virginia's credit for tax paid to New York. In this document, the department distinguishes between the income of a nonresident that is actually subject to tax by New York versus how New York determines the rates at which a nonresident's income will be taxed. See Public Document ("P.D.") 95-96 (5/1/95), copy enclosed. The department had previously ruled on this issue in P.D. 94-91.
In P.D. 95-96, the taxpayer computed the credit for income tax paid to New York in the same manner in which you advocate. For the reasons set forth in P.D. 95-96, the Taxpayers' request for relief must be denied.
Accordingly, the assessment is correct. Attached is a schedule indicating the tax liability plus interest accrued through the date of this letter. The assessments must be paid in full within 30 days to avoid accrual of additional interest. Please forward your payment to the Office of Tax Policy, the Virginia Department of Taxation, P.O. Box 1880, Richmond, Virginia 23282. Should you have additional questions regarding this matter, please contact****************.
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- Sincerely,
Danny M. Payne
Tax Commissioner
- Sincerely,
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OTP/8743L
Rulings of the Tax Commissioner