Tax Type
Individual Income Tax
Description
Refunds of tax; Statute of limitations
Topic
Returns and Payments
Date Issued
10-07-1996
October 7, 1996
Re: § 58.1-1821 Application: Individual Income Tax
Dear*********************
This will reply to the letter which contests the disallowance of a refund claim on your 1992 individual income tax return.
FACTS
Your letter states that you were unable to file your 1992 federal income tax return until March 20, 1996 because your records had been stolen. You advised the Internal Revenue Service (IRS) of your situation and obtained extensions to allow you to recreate your 1992 records.
You filed a 1992 Virginia income tax return on June 25, 1996. The Virginia return indicated that a refund was due. The refund was disallowed by the department as the return was filed outside of the statute of limitations. You contend that the refund should be allowed due to the extenuating circumstances of your case and the extensions granted by the IRS.
DETERMINATION
Code of Virginia § 58.1-344(A) provides in pertinent part that:
-
- Whenever any individual or fiduciary has been allowed or granted an extension or extensions of time within which to file any federal income tax return for any taxable year, the due date for the filing of the income tax return required under this chapter shall be extended to the date six months after such due date or fifteen days after the extended date for filing the federal income tax return, whichever is earlier. . . (Emphasis added.)
Based on this statue, the department does not have the authority to allow an extension of time to file an individual income tax return beyond six months after the due date for filing such a return. Code of Virginia § 58.1-101 does allow a waiver of the statute of limitations under written agreement between the department and the taxpayer provided it is executed prior to the expiration of the statute of limitations. Based on the information provided, no waiver agreement was requested from the department.
Pursuant to Code of Virginia § 58.1-499, no overpayment of tax will be refunded unless the individual income tax return requesting such overpayment is filed "within three years from the last day prescribed by law for the timely filing of the return, or within ninety days from the final determination of any change or correction in the liability of the taxpayer of any federal tax upon which the state tax is based, whichever is later."
Although I sympathize with your situation, your 1992 Virginia income tax returns were not filed within the statute of limitation periods for obtaining a refund. Consequently, the department does not have the authority to issue a refund. As a result, your application for refund cannot be granted.
If you have any additional questions regarding this ruling, please don't hesitate to call*************in the Office of Tax Policy at****************
Sincerely,
Danny M. Payne
Tax Commissioner
OTP/11619O
Rulings of the Tax Commissioner