October 19, 2023
Re: § 58.1-1821 Application: Individual Income Tax
Dear *****:
This will respond to your letter submitted on behalf of your clients, ***** (the “Taxpayers”), in which you seek a reconsideration of the Tax Commissioner’s determination, issued as Public Document (P.D.) 23-35 (4/5/2023).
FACTS
In P.D. 23-35, the Department concluded that the Taxpayers’ application for correction of the assessments issued for the taxable years ended December 30, 2018, and December 31, 2019, was barred by the statute of limitations. The Taxpayers contend that the determination was based on an inaccurate statement of the facts because they did not receive the original assessments that were issued on March 12, 2021.
DETERMINATION
Under Title 23 of the Virginia Administrative Code (VAC) 10-20-165 F, a taxpayer who disagrees with the Tax Commissioner’s final determination may request a reconsideration of the determination within 45 days. The Taxpayers’ request for reconsideration is dated June 26, 2023, after the 45-day period expired. The Taxpayers’ appeal is thus barred from further review.
Even if the Taxpayers’ reconsideration request had been timely, P.D. 23-35 was not based on an inaccurate statement of the facts. Virginia Code § 58.1-1820 provides that assessments made by the Department are deemed to be made when a written notice of assessment is mailed to a taxpayer at their last known address. The Department’s records indicate that the assessments at issue were mailed to the Taxpayers’ last known address on March 12, 2021. While it is unfortunate that the Taxpayers failed to receive the assessments, the Department fulfilled its statutory obligation by mailing the assessments to their last known address. See, e.g., P.D. 85-155 (7/29/1985), P.D. 18-35 (3/26/2018), and P.D. 22-18 (1/25/2022). Accordingly, P.D. 23-35 correctly determined that the original appeal was not made within the 90-day limitations period provided in Virginia Code § 58.1-1821.
For the reasons discussed above, P.D. 23-35 is upheld. This letter constitutes the Department’s final determination regarding the assessments for the 2018 and 2019 taxable years. The Taxpayers will receive an updated bill that will include accrued interest to date. The Taxpayers should remit the balance due within 30 days of the bill date to avoid the accrual of additional interest and possible collection actions.
The Code of Virginia sections, regulation, and public documents cited are available online at www.tax.virginia.gov in the Laws, Rules, & Decisions section of the Department’s website. If you have any questions regarding this determination, you may contact ***** in the Office of Tax Policy, Appeals and Rulings, at *****.
Sincerely,
Craig M. Burns
Tax Commissioner
AR/4606.X