February 18, 2025
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 correction of the retail sales and use tax assessment issued for the period October 2019 through November 2022.
FACTS
An audit was conducted on the books and records of the Taxpayer, a provider of glass for automobiles, replacement windows, and storefronts, as well as an installer of commercial doors and shower enclosures, for the period at issue. The audit resulted in an assessment of tax, penalty, and interest for untaxed sales, and purchases. The Taxpayer filed an application for correction contesting the audit method and findings.
DETERMINATION
Virginia Code § 58.1-1821 states 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.” Title 23 of the Virginia Administrative Code (VAC) 10-20-165 interprets Virginia Code § 58.1-1821 and sets out requirements for the filing of administrative appeals. Subsection D 4 of this regulation states: “An incomplete appeal or notice of intent to appeal does not satisfy or extend the 90-day limitation period."
Title 23 VAC 10-20-165 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.” Subsection D provides a list of the information required for a complete appeal. The required information includes alleged errors in the assessment, the grounds upon which the taxpayer relies, and all facts relevant to the taxpayer's contention. In addition, taxpayers must provide the legal authority (statutes, regulations, rulings of the Tax Commissioner, court decisions, etc.) which is the basis for the taxpayer's position in the application for correction.
In this instance, the correspondence submitted by the Taxpayer does not constitute a complete appeal. The correspondence fails to identify any specific errors in the assessment, or any legal authority upon which the Taxpayer’s position is based. Because the Taxpayer has failed to submit any grounds for contention or controlling legal authority, we conclude a complete appeal was not filed within the time prescribed by law.
Consequently, the Department is closing this case, and the assessment remains outstanding. An updated bill, with interest accrued to date, will be mailed shortly to the Taxpayer. No further interest will accrue provided the outstanding assessment is paid within 30 days from the date of the bill.
The Code of Virginia section and regulation cited are available online at law.lis.virginia.gov. If you have any questions regarding this response, you may contact ***** in the Office of Tax Policy and Legal Affairs, Tax Adjudication and Resolution Division, at ***** or *****.
Sincerely,
James J. Alex
Tax Commissioner
Commonwealth of Virginia
AR\4659.F