September 28, 2015
Re: § 58.1-1821 Application: Individual Income Tax
Dear *****:
This will reply to your letter in which you seek correction of the individual income tax assessment issued to ***** (the "Taxpayer") for the taxable year ended December 31, 2011.
FACTS
Based on information provided by the Internal Revenue Service (IRS), the Department adjusted the Taxpayer's 2011 individual income tax to match federal adjusted gross income (FAGI). As a result, the Department issued an assessment for additional tax and interest. The Taxpayer appeals the assessment, contending her Virginia return was correct as filed.
DETERMINATION
Virginia Code § 58.1-301 provides that terminology and references used in Title 58.1 of the Code of Virginia will have the same meaning as provided in the Internal Revenue Code (IRC) unless a different meaning is clearly required. For individual income tax purposes, Virginia "conforms" to federal law, in that it starts the computation of Virginia taxable income with federal adjusted gross income (FAGI).
In the preparation of her federal Individual income tax return, the Taxpayer claimed a deduction for certain tuition and fees in computing FAGI. The IRS information provided indicates this deduction was denied by the IRS, which issued an assessment. The Department merely corrected the Taxpayer's FAGI to match the amount reported on the IRS transcript.
Virginia Code § 58.1-311 requires individuals to report a change or correction in federal taxable income within one year of the final determination of such change or correction by filing an amended return with the Department. If the taxpayer fails to file an amended return, Va. Code § 58.1-312 A 3 permits the Department to assess the appropriate tax at any time.
Based on the foregoing, the assessment is correct as issued and there is no basis for relief. The Taxpayer satisfied only a portion of the 2011 tax liability. As such, the remaining liability is due and payable. The Taxpayer will receive an updated bill, which should be paid within 30 days of the bill date to avoid the accrual of additional interest.
The Code of Virginia sections, and public documents 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 determination, you may contact ***** in the Office of Tax Policy, Appeals and Rulings, at *****.
Sincerely,
Craig M. Burns
Tax Commissioner
AR/1-6088407176.D