Tax Type
Corporation Income Tax
Description
Time limitations for assessment and collection; Limitations period for refund claims
Topic
Collection of Tax
Date Issued
06-11-1997
June 11, 1997
Re: § 58.1-1821 Application: Corporate Income Tax
Dear***************
This will respond to your letter of April 19, 1997, in which you protest the denial of a refund of corporation income tax for ********* (the "Taxpayer").
FACTS
The Taxpayer was audited by the Internal Revenue Service (IRS) for the taxable years ending August 31, 1992, 1993, and 1994. An audit by the state of Maryland was subsequently conducted on the state returns for the taxable years ending August 31, 1992, 1993, and 1994. The Taxpayer reported both changes to the department and requested refunds for all three years. The changes made by Maryland to the August 31, 1992, taxable year were disallowed by the department because the statute had expired on that year for these adjustments. The department assessed the tax and interest due on the IRS changes and billed the Taxpayer accordingly. The Taxpayer protests the disallowance of the Maryland changes and requests that the department reconsider its position.
DETERMINATION
Pursuant to Code of Virginia § 58.1-1823, an amended return claiming a refund must be held within three years from the last day prescribed by law for the timely filing of the return. In this case, the amended return was filed more than three years after the original return. Consequently, your refund claim for the taxable year ending August 31, 1992, was denied because the department did not have the statutory authority to issue the refund.
Although I am sympathetic to your situation, the department must comply with the statutory restrictions as specified in Code of Virginia § 58.1-1823. Accordingly, your request that the department reconsider its previous ruling must be denied. It should be noted that the refund resulting from the adjustments made by Maryland which was denied for the taxable year ending August 31, 1992, was for ****no**** as stated in your letter.
If you have questions regarding this determination, please contact ********at**********.
Sincerely,
Danny M. Payne
Tax Commissioner
OTP/12503P
Rulings of the Tax Commissioner