Tax Type
Individual Income Tax
Description
Statute of limitations/Burden of proof is on the Taxpayer to show assessment is erroneous
Topic
Appeals
Assessment
Federal Conformity
Statute of Limitations
Date Issued
05-12-2014
May 12, 2014
Re: § 58.1-1821 Application: Individual Income Tax
Dear *****:
This will reply to your letter concerning the Virginia income tax assessment issued to ***** (the "Taxpayer") for the taxable year ending December 31, 2000. I apologize for the delay in responding to your request.
FACTS
The Department received information from the Internal Revenue Service that the Taxpayer may have income subject to Virginia income tax for the 2000 taxable year. The Department requested additional information. When no response was received, the Department issued an assessment. The Taxpayer appeals the assessment, contending she will accept the Department's assessment when the Department provides proof that the assessment is correct. The Taxpayer further argues that if such proof is not provided, that the Department should abate the assessment. The Taxpayer also alleges that she was not contacted regarding the debt until 2012.
DETERMINATION
Virginia Code § 58.1-1821 provides that "[a]ny person assessed with any tax administered by the Department of Taxation may, within ninety days from the date of such assessment, apply for relief to the Tax Commissioner." [Emphasis added.] Title 23 of the Virginia Administrative Code 10-20-165 provides additional requirements regarding the timely filing of administrative appeals. This regulation provides information to taxpayers about the process for appealing tax assessments, including how to file a complete and timely administrative appeal.
The assessment for the 2000 taxable year was issued on June 6, 2003. While the Taxpayer alleges that she was not aware of the assessment until October 2012, Department records indicate a number of attempts to contact the Taxpayer in writing in 2003 and 2008. The Department has no record that any of the correspondence was returned as undeliverable by the post office. In fact, a notice dated in 2008 was mailed to the same address as the notice received by the Taxpayer in 2012.
The Taxpayer filed an appeal with the Department by letter dated November 15, 2012. This filing is well after the expiration of the 90-day limitations period. Therefore, the Taxpayer's application for correction pursuant to Va. Code § 58.1-1821 is barred by the statute of limitations.
Further, Va. Code § 58.1-205 provides that in any proceeding relating to the interpretation of the tax laws of Virginia, an "assessment of a tax by the Department shall be deemed prima facie correct." As such, the burden of proof is on the Taxpayer to show the 2000 assessment is erroneous. The Taxpayer has not provided such proof. Accordingly, the assessment for the 2000 taxable year remains due and payable.
The Code of Virginia section and regulation cited are 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 response, you may contact ***** in the Office of Tax Policy, Appeals and Rulings, at *****.
-
-
-
-
-
-
-
- Sincerely,
-
-
-
-
-
-
Craig M. Burns
Tax Commissioner
AR/1-5260159178.D
Rulings of the Tax Commissioner