Tax Type
Individual Income Tax
Description
Refund resulting from litigation with the I.R.S.
Topic
Payment and Refund
Date Issued
12-10-1987
December 10, 1987
Re: §58.1-1821 Application/ Individual Income Tax
Dear **************
This will reply to your letter of January 15, 1985 on behalf of ************* (taxpayers) seeking correction of an assessment issued in the above referenced case for the year 1980. This also has reference to the taxpayers' payment in January 1986 of ************ for tax and interest for 1980.
As a result of litigation which has been pending between the taxpayers and the Internal Revenue Service for this tax year, we have held a final determination in this case in abeyance until resolution of the litigation. Enclosed with a recent letter to a member of my staff, dated November 5, 1987, is a copy of a settlement agreement dated November 2, 1987, entered into between the taxpayers and representatives of the Internal Revenue Service. Based on this agreement, the taxpayers now seek a refund of one-half of the tax and interest previously paid to the department, plus accrued interest.
Based on an examination of the agreement mentioned above, I find basis for granting the refund requested. Therefore, a refund will be issued to the taxpayers under separate cover consistent with this determination.
Sincerely,
W. H. Forst
Tax Commissioner
Rulings of the Tax Commissioner