Tax Type
Corporation Income Tax
Description
Investment tax credit basis
Topic
Subtractions and Exclusions
Date Issued
12-13-1985
December 19, 1985
Re: Section 58.1-1821 Application: Corporation Income Tax
Dear ****
This will reply to your letter of August 13, 1985 requesting relief from an assessment for calendar year 1983 against ***** ("Taxpayer").
Facts
Taxpayer underwent an office audit in which a subtraction for basis deduction due to the federal investment tax credit was disallowed. Tax and interest was assessed.
Taxpayer asserts that such result is not consistent with many of the special Virginia adjustments listed in Section 58.1-4O2C of the Code of Virginia.
Determination
As Taxpayer notes, the starting point of Virginia taxable income of a corporation is its federal taxable income "and any other income taxable to the corporation under federal law" adjusted as provided by Virginia Code Section 58.1-402 B, C or D. There is no statutory provision to subtract an investment tax credit basis reduction and I am without authority to create one by ruling or regulation. Accordingly, the outstanding balance of the above-referenced assessment remains due and payable.
Sincerely,
W. H. Forst
Tax Commissioner
Rulings of the Tax Commissioner