Tax Type
Employer Income Tax Withholding
Individual Income Tax
Description
Missing W-2 Forms; Employer ceased operations
Topic
Returns/Payments/Records
Withholding of Tax
Date Issued
05-30-1984
May 30, 1984
Re: §58-118 Application: Individual Income Tax
Dear *******************
This is in reply to your letter of January 4, 1984, in which you request relief from individual income tax and interest assessed against the ***** for taxable year 1981.
FACTS
***** died on January 29, 1983, prior to filing either his 1981 federal or Virginia income tax return. He had initiated work on these returns in early January, 1983 by contacting ***** of ***** to prepare these returns. Part of the delay in filing these returns resulted from the failure of his former employer, ***** to provide him with a Form W-2, Wage and Tax Statement. The situation was further complicated by the fact that ***** ceased business operations in late 1981.
***** completed work on these returns June 15, 1283. They relied on the information ***** provided prior to his death and information provided by the former accountant for *****. The 1981 federal income tax return, which was accepted by the Internal Revenue Service, was prepared using reconstructed withholding information since no Form W-2 was available. The Virginia income tax return was prepared and filed using the same method of reconstructing the withholding information. However, the amount of Virginia income tax withheld claimed on the Virginia return was questioned and later disallowed when you failed to provide Form W-2. An assessment for tax and interest was issued on December 30, 1983.
You are requesting that the Department accept the reconstructed withholding figures and abate in full the assessment in question.
DETERMINATION
You have provided the Department with pay stubs showing that approximately $***** was withheld from *****'s pay by ***** for Virginia income tax. § 58-151.8:1 of the Code of Virginia provides that if an employee can show that an employer deducted and withheld taxes from his salary but failed to pay over the money that was withheld, the employee shall be allowed the credit for the taxes withheld as if the money had been paid to Virginia as required.
Based on the foregoing, I find that you have provided the necessary information to prove that the employer deducted the claimed amount of State income tax. I have directed that the assessment be abated in full and that a refund be issued for the amount of overpayment shown on the return as filed.
Sincerely,
W. H. Forst
State Tax Commissioner
Rulings of the Tax Commissioner