Document Number
95-177
Tax Type
Individual Income Tax
Description
Changes to federal adjusted gross income
Topic
Taxable Income
Date Issued
06-28-1995
June 28, 1995



Re: §58.1-1821 Application: Individual Income Tax


Dear***************

Thank you for your most recent letter contesting the assessments issued to you by the department as the result of corrections made to your federal income tax liability by the Internal Revenue Service.

I have carefully considered your letters, but again must respectfully disagree with your conclusions of law. I believe my previous letter clearly lays out the department's authority for the assessment of additional liability, and, under Code of Virginia §58.1-202, copy enclosed, I am delegated the responsibility for the administration of the Commonwealth's tax laws, including the individual income tax levied under Code of Virginia §58.1-320.

Although I recognize your continuing disagreement with the validity of the assessments issued by the IRS and the department, this letter constitutes the department's final determination on this issue. For the reasons stated in my previous letter and the very clear provisions of state law, the department has no alternative but to uphold the assessments and recommence collection action.

As this matter results from adjustments made to your federal returns by the IRS, the department cannot offer any relief in the future absent changes by the IRS to your underlying federal liabilities. In the event of a change by the IRS to your federal liabilities, state law provides taxpayers three years from the due date of the state return or 90 days from the date of the final federal determination in which to request a corresponding state tax refund.

If you wish to pursue this matter further, there is a judicial remedy under Code of Virginia §58.1-1825. Additionally, there are administrative and judicial remedies available to you at the federal level, with respect to IRS's assessment.

                        • Sincerely,


                          Danny M. Payne
                          Tax Commissioner







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