Re: Request for Ruling: Period of Limitations
Dear *****:
This will reply to your letter in which you request a ruling concerning the period of limitations for collecting taxes. I apologize for the delay in responding to your request.
Under Va. Code § 58.1-1802.1, the period of limitations for the Department to make or institute collection action by levy, proceeding in court, or any other means under Virginia law is seven years from the date of the assessment. You request a ruling as to the applicability of this statute.
Virginia Code § 58.1-1802.1 A provides in pertinent part:
Where the assessment of any tax imposed by this subtitle has been made within the period of limitation properly applicable thereto, such tax may be collected by levy, by a proceeding in court, or by any other means available to the Tax Commissioner under the laws of the Commonwealth, but only if such collection effort is made or instituted within seven years from the date of the assessment of such tax. [Emphasis added.]
A collection effort with regard to a taxpayer commences when it levies an assessment and encompasses all means of collecting taxes enumerated under Virginia statutes. In general, some form of collection action is usually taken early on within the seven year limitations period. It has been the Department's policy that so long as the any collection action is initiated or made before the end of the period of limitations, collection may continue until the assessment is satisfied.
The Code of Virginia section cited is available on-line at www.tax.virginia.gov in the Laws, Rules & Decisions section of the Department's web site. If you have any questions regarding this ruling, you may contact ***** in the Office of Tax Policy, Appeals and Rulings, at *****.
Sincerely,
Craig M. Burns
Tax Commissioner
AR/1-5531200166.o