Tax Type
Corporation Income Tax
Description
Refund statute of limitations
Topic
Statute of Limitations
Date Issued
09-26-1985
September 26, 1985
Re: Section 58.1-1821 Application: Corporation Income Tax
Dear ****
This will reply to your letter of May 14, 1985, requesting relief from denial of 2 refund claim.
Facts
***** ("Taxpayer") was audited by the Internal Revenue Service for tax years 1977, 1978 and 1979 and a final determination was rendered August 6, 1984. By letter dated November 8, 1981, Taxpayer notified the Department of Taxation of the Internal Revenue Service adjustments. Tax year 1977 was the only year for which the federal changes would result in a refund.
The department denied Taxpayer's claim for a refund for tax year 13/, because Taxpayer did not comply with § 58.1-1821 of the Code of Virginia (requiring, in pertinent part, that an amended return must be filed within 60 days from the final determination of any change or correction in the liability of the taxpayer for any federal tax upon which the state tax is based). Taxpayer acknowledges that such section alone would bar the claim, but argues that the requirement of Virginia Code § 58.1-311 that a taxpayer report a change or correction in federal taxable income within 90 days after the final determination change or correction should carry some weight. This should be so, asserts Taxpayer, because if a taxpayer reported federal changes within 90 days but outside 60 days, Virginia would still expect that taxpayer to pay additional tax based on the report.
DETERMINATION
With respect to the filling requirements of Virginia Code §§58.1-311 and 58.1-1823 (and their predecessor sections), it has been the consistent policy of the department, most recently promulgated in Virginia Corporation Income Tax Regulations §630-3-311 (copy enclosed), that a corporation must file an amended return claiming a refund for overpayment of tax within 60 days of the final determination of any changes in its federal tax liability.
Taxpayer concedes that it did not meet the 60-day filing requirement. Unfortunately, the law does not grant me any discretion to waive this requirement.
Accordingly, I must deny your request.
Sincerely,
W. H. Forst
Tax Commissioner
Re: Section 58.1-1821 Application: Corporation Income Tax
Dear ****
This will reply to your letter of May 14, 1985, requesting relief from denial of 2 refund claim.
Facts
***** ("Taxpayer") was audited by the Internal Revenue Service for tax years 1977, 1978 and 1979 and a final determination was rendered August 6, 1984. By letter dated November 8, 1981, Taxpayer notified the Department of Taxation of the Internal Revenue Service adjustments. Tax year 1977 was the only year for which the federal changes would result in a refund.
The department denied Taxpayer's claim for a refund for tax year 13/, because Taxpayer did not comply with § 58.1-1821 of the Code of Virginia (requiring, in pertinent part, that an amended return must be filed within 60 days from the final determination of any change or correction in the liability of the taxpayer for any federal tax upon which the state tax is based). Taxpayer acknowledges that such section alone would bar the claim, but argues that the requirement of Virginia Code § 58.1-311 that a taxpayer report a change or correction in federal taxable income within 90 days after the final determination change or correction should carry some weight. This should be so, asserts Taxpayer, because if a taxpayer reported federal changes within 90 days but outside 60 days, Virginia would still expect that taxpayer to pay additional tax based on the report.
DETERMINATION
With respect to the filling requirements of Virginia Code §§58.1-311 and 58.1-1823 (and their predecessor sections), it has been the consistent policy of the department, most recently promulgated in Virginia Corporation Income Tax Regulations §630-3-311 (copy enclosed), that a corporation must file an amended return claiming a refund for overpayment of tax within 60 days of the final determination of any changes in its federal tax liability.
Taxpayer concedes that it did not meet the 60-day filing requirement. Unfortunately, the law does not grant me any discretion to waive this requirement.
Accordingly, I must deny your request.
Sincerely,
W. H. Forst
Tax Commissioner
Rulings of the Tax Commissioner