February 18, 2025
Re: § 58.1-1821 Application: Individual Income Tax
Dear *****:
This will respond 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, 2018.
FACTS
In April 2021, the Department issued an assessment of individual income tax to the Taxpayer for the 2018 taxable year. The Taxpayer replied, stating that she was married to a military servicemember and their state of residency was ***** (State A). The Department and the Taxpayer then began a series of correspondences in an attempt to resolve the matter. In December 2021, the Department sent a letter explaining the effects of separation and divorce on the Taxpayer’s eligibility for relief under the Military Spouses Residency Relief Act (MSRRA). No further correspondence was exchanged until the Department filed a lien in May 2024 in an attempt to collect the assessment. In response, the Taxpayer filed an application for correction, contending she was not a resident of Virginia in 2018.
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 B 1 provides that “[t]he Department strictly enforces the 90-day limitations period for filing a timely administrative appeal. A taxpayer must file a complete appeal within 90 calendar days after the date of assessment.”
In this instance, the assessment for the 2018 taxable year was issued in April 2021. The Taxpayer filed her application for correction to initiate her administrative appeal in June 2024, well after the 90-day limitations period. Further, the time within which the Taxpayer could have paid the assessment and filed a protective claim for refund under Virginia Code § 58.1-1824 expired in April 2024, three years after the assessment was issued. Accordingly, the Taxpayer’s application for correction is time-barred.
The Taxpayer will receive an updated bill that will include accrued interest to date. The Taxpayer should remit the balance due within 30 days of the bill date to avoid the accrual of additional interest and possible collection actions.
The Code of Virginia sections and regulation cited are available online at law.lis.virginia.gov. If you have any questions regarding this determination, 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/4989.X