Tax Type
Employer Income Tax Withholding
Description
Liability of corporate officer; Converted assessment
Topic
Penalties and Interest
Persons Subject to Tax
Date Issued
11-08-1995
November 8, 1995
Re: § 58.1-1821 Application: Withholding Tax
Dear*****************:
This will reply to your letter of September 13, 1995, in which you make application for correction of converted assessments against**********(the "Taxpayer"). The assessments were converted from***********(the "Corporation") .
FACTS
The Corporation was assessed withholding penalties for a number of filing periods, beginning in October 1988, and ending with the May 1989 filing period. On April 19,1991, the Taxpayer was informed that the assessments would be converted to him as a responsible officer of the corporation, and on May 15, 1991, the assessments were converted to the Taxpayer. A lien was later placed against the Taxpayer, and was withdrawn on or around November 12,1991, when you contacted the department to arrange an installment payment plan. You now aver that the assessments were converted after the statute of limitations had expired, and therefore are not collectible.
DETERMINATION
Under Code of Virginia § 58.1-104, the Department of Taxation has three years from the last day prescribed by law for the timely filing of a return to make an assessment on such return. In this case, the oldest return involved is for October 1988, and it was due on November 20, 1988. Three years from this date was November 20, 1991. The assessments were converted to the Taxpayer on May 15, 1991. Clearly, this in within the statutory three year period.
Accordingly, l find that all assessments were made within the statutory three year period and therefore, your application for correction must be denied.
The remaining balance of the assessments, ******* should be paid within the next 30 days. The payment should be forwarded to***************c/o Office of Tax Policy, Virginia Department of Taxation, P.O. Box 1880, Richmond, Virginia 23282-1880.
Sincerely,
Danny M. Payne
Tax Commissioner
OTP/10341P
Rulings of the Tax Commissioner