Tax Type
Individual Income Tax
Description
Statute of limitations
Topic
Statute of Limitations
Date Issued
04-05-1985
April 5, 1985
Re: §58.1-1821 Application/Individual Income Tax
Dear ****
This will reply to your letter of January 31, 1985 on behalf of ***** (Taxpayers), requesting adjustment of the assessment in the above referenced case.
FACTS
Taxpayers' 1980 return erroneously claimed a $**** subtraction from federal adjusted gross income on an addition line. The return was processed by the Department, and Taxpayers' claimed overpayment credit of $**** was reduced to $****.
Taxpayers' 1981 return showed an overpayment credit of $**** to be carried forward to 1982, while the Department's records indicated only in overpayment credit.
Taxpayers' initial 1982 return claimed a refund of $**** and an overpayment credit of $****. However, Taxpayers' amended 1982 return claimed only $**** as an overpayment credit. The Department processed the original return, reduced the claimed overpayment credit to $**** and notified Taxpayers of the adjustment. Taxpayers state that they did not respond to this notice of adjustment since it showed more overpayment credit than they claimed on their amended 1982 return.
Taxpayers' initial 1983 return claimed an overpayment credit of $****. However, their amended 1983 return showed a balance due the Department of $****. Following adjustment of their 1983 returns, the Department issued Taxpayers a bill for $****. Upon receipt of this bill, Taxpayers made their first contact with the Department in December, 1984.
Although they admit to having made certain typographical and arithmetic errors in preparing their taxes, Taxpayers now seek to set the record straight back to 1980. Accordingly, Taxpayers request abatement of the assessment in exchange for an adjustment to their overpayment account of $**** for tax years 1981 through 1983.
DETERMINATION
§58.1-1823 of the Virginia Code provides that, "Any person filing a tax return required for any tax administered by the Department..may, within three years from the last day prescribed by law for the timely filing of the return, or within sixty 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, whichever is later, file an amended return with the Department." (Emphasis added).
The last day for the timely filing of Taxpayers' 1980 return was May 1, 1981. Therefore, Taxpayers had until May 1, 1984 to file for correction of any typographical or arithmetic errors made in that return. If Taxpayers had inquired into the reasons for the notice of adjustment issued by the Department in August, 1983, anytime prior to May 1, 1984, it would have been possible to correct the errors made in 1980.
However, the Department received no correspondence from Taxpayers until December 10, 1984, beyond the date required for filing corrections to their 1980 return. Therefore, the Department is unable to make any adjustments to Taxpayer's 1980 return.
Although I understand Taxpayers' reasons for not contacting the Department upon receipt of the notice of adjustment in August, 1983, Taxpayers were on notice that their claimed overpayment credit was not in accord with the Department's records. Were it not for the fact that Taxpayers delayed in contacting the Department for well over a year, the corrections might have been made.
Based on all of the above, I find no basis for correction of the assessment in this case, the full amount of which is hereby due and payable.
Sincerely,
W. H. Forst
Tax Commissioner
Re: §58.1-1821 Application/Individual Income Tax
Dear ****
This will reply to your letter of January 31, 1985 on behalf of ***** (Taxpayers), requesting adjustment of the assessment in the above referenced case.
FACTS
Taxpayers' 1980 return erroneously claimed a $**** subtraction from federal adjusted gross income on an addition line. The return was processed by the Department, and Taxpayers' claimed overpayment credit of $**** was reduced to $****.
Taxpayers' 1981 return showed an overpayment credit of $**** to be carried forward to 1982, while the Department's records indicated only in overpayment credit.
Taxpayers' initial 1982 return claimed a refund of $**** and an overpayment credit of $****. However, Taxpayers' amended 1982 return claimed only $**** as an overpayment credit. The Department processed the original return, reduced the claimed overpayment credit to $**** and notified Taxpayers of the adjustment. Taxpayers state that they did not respond to this notice of adjustment since it showed more overpayment credit than they claimed on their amended 1982 return.
Taxpayers' initial 1983 return claimed an overpayment credit of $****. However, their amended 1983 return showed a balance due the Department of $****. Following adjustment of their 1983 returns, the Department issued Taxpayers a bill for $****. Upon receipt of this bill, Taxpayers made their first contact with the Department in December, 1984.
Although they admit to having made certain typographical and arithmetic errors in preparing their taxes, Taxpayers now seek to set the record straight back to 1980. Accordingly, Taxpayers request abatement of the assessment in exchange for an adjustment to their overpayment account of $**** for tax years 1981 through 1983.
DETERMINATION
§58.1-1823 of the Virginia Code provides that, "Any person filing a tax return required for any tax administered by the Department..may, within three years from the last day prescribed by law for the timely filing of the return, or within sixty 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, whichever is later, file an amended return with the Department." (Emphasis added).
The last day for the timely filing of Taxpayers' 1980 return was May 1, 1981. Therefore, Taxpayers had until May 1, 1984 to file for correction of any typographical or arithmetic errors made in that return. If Taxpayers had inquired into the reasons for the notice of adjustment issued by the Department in August, 1983, anytime prior to May 1, 1984, it would have been possible to correct the errors made in 1980.
However, the Department received no correspondence from Taxpayers until December 10, 1984, beyond the date required for filing corrections to their 1980 return. Therefore, the Department is unable to make any adjustments to Taxpayer's 1980 return.
Although I understand Taxpayers' reasons for not contacting the Department upon receipt of the notice of adjustment in August, 1983, Taxpayers were on notice that their claimed overpayment credit was not in accord with the Department's records. Were it not for the fact that Taxpayers delayed in contacting the Department for well over a year, the corrections might have been made.
Based on all of the above, I find no basis for correction of the assessment in this case, the full amount of which is hereby due and payable.
Sincerely,
W. H. Forst
Tax Commissioner
Rulings of the Tax Commissioner