Tax Type
Retail Sales and Use Tax
Description
Taxpayer failed to file a timely appeal, its appeal is barred from consideration.
Topic
Statute of Limitations
Date Issued
04-24-2012
April 24, 2012
Re: § 58.1-1821 Application: Retail Sales and Use Tax
Dear *****:
This is in response to your letter in which you request correction of the consumer use tax assessment issued to ***** (the "Taxpayer") as a result of an audit for the period May 2008 through April 2011.
A notice of assessment was issued to the Taxpayer on December 13, 2011. The reverse side of the notice of assessment contains the following statement: "You may appeal this assessment at any time within 90 days of the date of assessment." On December 2, 2011, ***** (the approving supervisor of the audit) sent you a letter notifying you that, "Your appeal must be submitted within 90 days of the audit assessment bill date."
Virginia Code § 58.1-1821 states, "Any person assessed with any tax administered by the Department of Taxation may, within ninety days from the date of assessment, apply for relief to the Tax Commissioner." Pursuant to Title 23 of the Virginia Administrative Code (VAC) 10-20-165 C 1, the 90-day limitations period "begins on the calendar day after the date of assessment and continues for 90 consecutive calendar days (including weekends and holidays)."
Based on the foregoing, the Taxpayer was required to file a complete appeal by March 12, 2011. The Taxpayer, however, faxed its administrative appeal on March 13, 2011. The Department strictly enforces the 90-day limitations period for filing a timely administrative appeal. See Title 23 VAC 10-20-165 B 1b. As demonstrated by the notice of assessment and the letter from the approving audit supervisor, the Taxpayer was given sufficient notice in writing of the 90-day rule for appealing an assessment. Because the Taxpayer failed to file a timely appeal, its appeal is barred from consideration.
I understand that the Taxpayer paid all of the original audit liability. After the assessment was issued on December 13, 2011, a 20% post amnesty penalty was applied to the assessment pursuant to subsection F 1 of Va. Code § 58.1-1840.1 because the assessment was not paid within 30 days of its issuance. The Taxpayer owes the outstanding post amnesty penalty in the amount of *****.
The Code of Virginia sections and regulation cited are available on-line at www.tax.virginia.gov in the Tax Policy Library section of the Department's web site. If you have any questions about this determination, you may contact ***** in the Department's Office of Tax Policy, Appeals and Rulings, at *****.
-
-
-
-
-
-
-
- Sincerely,
-
-
-
-
-
-
-
-
-
-
-
-
-
- Craig M. Burns
Tax Commissioner
- Craig M. Burns
-
-
-
-
-
-
AR/1-5034615409.T
Rulings of the Tax Commissioner