Tax Type
Corporation Income Tax
Description
Refund of unused ACRS adjustments
Topic
ACRS Modifications
Payment and Refund
Date Issued
12-22-1999
December 22, 1999
Re: Request for a Ruling: Corporate Income Taxation
Dear***:
This will reply to your letter in which you request a ruling on the applicability of unused ACRS adjustments to corporate taxpayers. I apologize for the delay in response.
You have requested a ruling on whether a corporation is entitled to claim a refund for excess unused ACRS adjustments. Title 23 of the Virginia Administrative Code (VAC) 10-120-66(A) provides in pertinent part that:
Therefore, all Virginia taxpayers, including corporations, may claim a refund for excess unused ACRS adjustments provided that they are otherwise entitled to such refund.
However, 23 VAC 10-120-66(C) provides that an application for a refund for excess cost recovery not recovered must make an application within three years from the due date of the last return on which a taxpayer is entitled to claim an excess cost recovery subtraction. Code of Virginia Sec. 58.1-323.1 provides that the last taxable year in which a corporate taxpayer may subtract outstanding amounts of excess cost recovery are those beginning on January 1 through December 31, 1997. Therefore, corporations must request a refund for excess cost not otherwise subtracted within three years from the due date of that corporation's income tax return for the taxable year beginning between January 1 and December 31, 1997. For corporations that file on a calendar year basis, the three year statute of limitations would expire April 15, 2001.
I hope that the this ruling answers your question. If you have any further questions, you may contact ***** at *****
Sincerely,
Danny M. Payne
Tax Commissioner
OTP/24231B
Re: Request for a Ruling: Corporate Income Taxation
Dear***:
This will reply to your letter in which you request a ruling on the applicability of unused ACRS adjustments to corporate taxpayers. I apologize for the delay in response.
You have requested a ruling on whether a corporation is entitled to claim a refund for excess unused ACRS adjustments. Title 23 of the Virginia Administrative Code (VAC) 10-120-66(A) provides in pertinent part that:
-
- [A]ny Taxpayer who can demonstrate that the entire outstanding balance of the excess cost recovery ... has not been recovered ... by such taxpayer ... may apply for a refund of unrecovered taxes paid on the outstanding balance of excess cost recovery (Emphasis Added).
Therefore, all Virginia taxpayers, including corporations, may claim a refund for excess unused ACRS adjustments provided that they are otherwise entitled to such refund.
However, 23 VAC 10-120-66(C) provides that an application for a refund for excess cost recovery not recovered must make an application within three years from the due date of the last return on which a taxpayer is entitled to claim an excess cost recovery subtraction. Code of Virginia Sec. 58.1-323.1 provides that the last taxable year in which a corporate taxpayer may subtract outstanding amounts of excess cost recovery are those beginning on January 1 through December 31, 1997. Therefore, corporations must request a refund for excess cost not otherwise subtracted within three years from the due date of that corporation's income tax return for the taxable year beginning between January 1 and December 31, 1997. For corporations that file on a calendar year basis, the three year statute of limitations would expire April 15, 2001.
I hope that the this ruling answers your question. If you have any further questions, you may contact ***** at *****
Sincerely,
Danny M. Payne
Tax Commissioner
OTP/24231B
Rulings of the Tax Commissioner