Tax Type
Corporation Income Tax
Description
Energy Income Tax Credit
Topic
Accounting Periods and Methods
Credits
Date Issued
04-02-1999
April 2, 1999
Re: § 58.1-1821 Application: Corporate Income Tax
Dear***************
This will respond to your letter in which inquire about the proper usage of an income tax credit certified by the Department of Environmental Quality (DEQ) for purchase and installation of recycling machinery and equipment made by *************** (the "Taxpayer').
FACTS
The Taxpayer invested in recycling machinery and equipment in 1993 that qualified for the recycling and machinery equipment credit administered by the DEQ. The Taxpayer applied for certification of the credit on November 8, 1996. The DEQ did not certify the credit until November 24, 1997. The Taxpayer filed amended 1993 returns for the shareholders which were denied by the department. You protest the denial of the amended returns and state that the delay in amending the returns was caused by the DEQ and therefore the returns should be honored.
DETERMINATION
Pursuant to Code of Virginia § 58.1-1823, a taxpayer has three years from the due date of the return to file an amended return to request a refund. The amended returns in question were filed on or about April, 1998, per your correspondence. To be timely filed, the amended returns would have had to have been filed prior to May 1, 1997. Because these returns were not filed within the statutory period set forth in Code of Virginia § 58.1-1823, the department has no authority to honor the amended returns and issue refunds. The Taxpayer may, however, amend the 1995 returns and use any credit remaining after reduction by the amount of credit that would have been allowable for 1993 and 1994.
The Taxpayer suggests that the statute should remain open as a matter of equitable treatment. While Virginia has adopted conformity to the Internal Revenue Code, such conformity is only with respect to terms used in the Code of Virginia. Virginia statutes do not contain the equivalent of the federal mitigation provisions.
Although I am sympathetic to your situation, the department must comply with the statutory restrictions with respect to refunds as specified in Code of Virginia § 58.1-1823. Consequently, your request that the department reconsider its position on the denial of the refunds cannot be granted.
If you have any questions regarding this determination, please contact ***** of the Office of Tax Policy at *****.
Sincerely,
Danny M. Payne
Tax Commissioner
OTP/18538P
Rulings of the Tax Commissioner