December 7, 2023
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 a refund for the period January 2019.
FACTS
The Taxpayer, a company that provides computer and data processing solutions to its customers in Virginia, submitted an amended return on February 28, 2022, claiming a refund for the period at issue. The Department sent a request to the Taxpayer to complete the refund request in accordance with the Department’s Retail Sales and Use Tax Refund Claim Procedures. This notice advised the Taxpayer that the statute of limitations on refund requests expires three years from the due date of the overpaid return. The Taxpayer asserts that this notice was not received.
Upon following up on the status of the amended return, the Taxpayer was informed that the amended filing was insufficient to claim a refund and also informed of how to obtain the Department’s refund procedures to resubmit the request. After no response was received, the Department issued a notification through mail as well as in an e-mail explaining that the incomplete submission exceeded the statute of limitations, and the refund claim was denied.
DETERMINATION
Virginia Code § 58.1-1823 provides that anyone who files a tax return or pays an assessment required for any tax administered by the Department may file an amended return within three years from the last day prescribed by law for the timely filing of the return. Title 23 of the Virginia Administrative Code (VAC) 10-210-3040 further provides guidance for dealers to request a refund for taxes erroneously collected, emphasizing that a refund may only be authorized if the request is made within three years from the due date of the return. For the period in question, the claim for a refund was required to be filed by February 20, 2022.
The Department sent a notification to the Taxpayer at their last known address informing that the refund claim should be resubmitted using the Department’s refund procedures. In accordance with the Retail Sales and Use Tax Refund Claim Procedures, the auditor allowed the Taxpayer sufficient time to respond. Because no response was received, the auditor denied the refund claim and a notification of the denial was sent on January 31, 2023.
Upon further review of the Taxpayer’s appeal, the Department's records reflect that the postmark date of the amended filing was February 28, 2022. This filing was out of statute upon its submission. In addition, the Taxpayer failed to submit a refund claim within the three-year statute of limitations.
Title 23 VAC 10-210-3040 addresses the refund of sales tax to dealers and provides, in pertinent part, that “refunds cannot be authorized unless the request is made within three years from the due date of the return.” Accordingly, a refund cannot be authorized for this period as it exceeds the statute of limitations regarding the refund of the Virginia sales tax. Based on the facts and circumstances of this case, the refund denial is upheld.
The Code of Virginia sections and regulations 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/4490.Y