Tax Type
Individual Income Tax
Description
Disability payments
Topic
Penalties and Interest
Returns/Payments/Records
Date Issued
11-15-1982
November 15, 1982
Re: § 58-1118 Application/1981 Individual Income Tax
Dear *********************
This responds to your letter of August 16, 1982, requesting correction of an assessment made by the department on June 30, 1982, for 1981 individual income tax penalty and interest, and for an estimated income tax underpayment penalty, totaling $ **********
You have applied for correction of the assessment on the basis that your only source of income, disability payments made by the insurer of ****** your employer, is excluded from federal and thus, Virginia's adjusted gross income. There are, however, certain qualifications for exclusion or disability income under § 105 of the Internal Revenue Code, one being that the employer shall not have paid the premiums. Since your employer did pay the premiums, your disability income is not excludable under Virginia law.
It is our understanding from our ******** District Office that you have been in contact with the Internal Revenue Service on this question since the time of your letter to this department and that the IRS has informed you that your disability income is taxable. You have indicated to our ******* office that, realizing and accepting your liability to Virginia, you would like to work out a payment schedule. You should proceed to arrange this schedule with the*********office.
Sincerely,
W. H. Forst
State Tax Commissioner
Rulings of the Tax Commissioner