Tax Type
Individual Income Tax
Description
Taxpayer has provided no objective evidence that he was not a resident of Virginia
Topic
Federal Conformity
Records/Returns/Payments
Residency
Date Issued
01-31-2013
January 31, 2013
Re: § 58.1-1821 Application: Individual Income Tax
Dear *****:
This will reply to your letter in which you seek reconsideration of the Department's determination letter, issued as Public Document (P.D.) 12-121 (7/26/2012), to ***** (the "Taxpayer") for the taxable year ended December 31, 2005.
FACTS
The Department received information from the Internal Revenue Service (IRS) indicating the Taxpayer had income for the taxable year at issue and issued an assessment. The Taxpayer filed an appeal, contending the information from the IRS was illegally obtained and the information agreement between the IRS and the Department exceeds the authority of the Internal Revenue Code (IRC).
In P.D. 12-121, the Department determined that the information provided by the IRS was legally, obtained and upheld the assessment. The Taxpayer requests a redetermination, reiterating his argument that the Department failed to follow federal statutory requirements when it obtained the Taxpayer's federal tax information.
DETERMINATION
As set forth in P.D. 12-121, when a Virginia resident does not file a Virginia return, IRC § 6103(d) authorizes the Department to obtain information from the IRS in order to determine that resident's tax liability. In addition, Va. Code § 58.1-111 authorizes the Department to estimate tax liability when a person refuses to file a valid return. Such assessment is deemed prima facie correct. See Va. Code §58.1-205.
The Taxpayer has provided no objective evidence that he was not a resident of Virginia during the 2005 taxable year and was not required to file a Virginia income tax return. As such, the Department was well within its legal authority to issue an assessment for the 2005 taxable year as permitted under Va. Code § 58.1-111.
While I recognize your continuing disagreement with the validity of the assessment, P. D. 12-121 clearly explains the Department's authority for its assessment, and constitutes the Department's final determination on this issue. Accordingly, the assessment for the 2005 taxable year is upheld. The Taxpayer should remit payment in accordance with the enclosed schedule immediately to avoid the additional collection actions.
If the Taxpayer wishes to appeal this matter further, he may pursue a judicial remedy under Va. Code § 58.1-1825. The court application must be filed within three years from the date of the assessment or one year from the date of the Department's determination in P.D. 12-121, whichever is later.
The Code of Virginia sections and public document cited are available on-line at www.tax.virginia.gov in the Laws, Rules and Decisions section of the Department's web site. If you have any questions regarding this response, you may contact ***** in the Office of Tax Policy, Appeals and Rulings, at *****.
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- Sincerely,
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Craig M. Burns
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- Tax Commissioner
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AR/1-5168634197.o
Rulings of the Tax Commissioner