September 24, 2015
Re: § 58.1-1821 Application: Retail Sales and Use Tax
Dear *****:
This is in response to your letter submitted on behalf of ***** (the "Taxpayer") in which you seek to appeal the retail sales and use tax assessment issued by the Department for the period November 2008 through December 2014.
FACTS
In its letter to the Department dated April 30, 2015, the Taxpayer stated that it was writing to question and appeal two Notices of Assessment issued to the Taxpayer by the Department. A letter from the Department dated June 8, 2015, was sent to the Taxpayer indicating that the Taxpayer's April 30, 2015, correspondence did not constitute a complete appeal as required by Va. Code § 58.1-1821 and Title 23 of the Virginia Administrative Code (VAC) 10-20-165. The letter further instructed that a complete appeal should be filed with the Department no later than July 27, 2015, the date that the statute of limitations to appeal expired. The assessments were issued to the Taxpayer on April 28, 2015.
DETERMINATION
Virginia Code § 58.1-1821 states, in pertinent part, that:
Any 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. Such application shall be in the form prescribed by the Department, and shall fully set forth the grounds upon which the taxpayer relies and all facts relevant to the taxpayer's contention. [Emphasis added.]
Title 23 VAC 10-210-165 A defines a complete appeal as "an administrative appeal containing sufficient information, as prescribed in subsection D of this section, so that the grounds upon which the taxpayer relies in contesting an assessment are fully set forth to allow the Tax Commissioner to make an informed final determination."
Title 23 VAC 10-210-165 D 1 provides that in order to be complete, an administrative appeal shall contain the following:
a. Identification of the taxpayer (to include mailing address, federal tax identification number or social security number);
b. Type of tax;
c. Taxable period;
d. Date of assessment (if paid, include date of payment);
e. Remedy sought;
f. A statement signed by the taxpayer or duly appointed or authorized agent or attorney setting forth each alleged error in the assessment, the grounds upon which the taxpayer relies and all facts relevant to the taxpayer's contention; and
g. Controlling legal authority (statutes, regulations, rulings of the Tax Commissioner, court decisions, etc.) upon which the taxpayer's position is based.
Pursuant to the aforementioned authorities, a complete appeal must be filed with the Tax Commissioner within ninety days from the date of the assessment. In this instance, the correspondence filed by the Taxpayer does not constitute a complete appeal. The Taxpayer was given the opportunity to provide a complete appeal prior to the expiration of the statute of limitations to appeal. As of this date, a complete appeal has not been filed with the Department and the statute of limitations expired on July 27, 2015. Accordingly, the Taxpayer is barred from filing an application for correction of the subject assessment.
Updated bills, with interest accrued to date, will be mailed shortly to the Taxpayer. No additional interest will accrue provided the outstanding balances are paid within 30 days of the date of the bill. Please remit payment within 30 days from the date of the bill to: Virginia Department of Taxation, Office of Tax Policy, Appeals and Rulings, Attn: *****, Post Office Box 27203, Richmond, Virginia 23261-7203. If payment is not received within the allotted time, collection action will be initiated.
The Code of Virginia and regulation sections 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 about this response, you may contact ***** in the Department's Office of Tax Policy, Appeals and Rulings, at *****.
Sincerely,
Craig M. Burns
Tax Commissioner
AR/1-6057547789.P