Tax Type
Individual Income Tax
Description
Resident living abroad
Topic
Residency
Date Issued
02-20-1987
February 20, 1987
Re: §58.1-1821 Application/ Individual Income Tax
Dear *****************
This will reply to your letter of November 3, 1986 in which you protest an assessment made in the above referenced case for taxable years 1981 through 1983 on behalf of *************** (taxpayers).
FACTS
In September, 1980, the taxpayers moved to Saudi Arabia pursuant to a contract of employment of an unspecified duration. Prior to this time the taxpayers had resided in Virginia for a period of approximately twenty continuous years except for a period of about five years during which they resided outside Virginia while serving in the armed forces. When they returned to Virginia in 1984 at the conclusion of their overseas assignment, the taxpayers resumed residence in the same home which they had occupied prior to leaving Virginia, and which had been rented in their absence.
In addition to the home which they maintained in Virginia for the duration of their assignment in Saudi Arabia, the taxpayers responses to Virginia's Domicile questionnaire indicate that they have been registered voters in Virginia since 1975; have paid personal property taxes in Virginia during each of the last six years; have maintained a licensed motor vehicle in Virginia since 1948; and except for numerous intermittent military assignments which required the taxpayers to reside elsewhere, have maintained residences in Virginia at all other times between the years 1948 and 1987.
Notwithstanding the foregoing, the taxpayers contend that at the time they left Virginia for their assignment in Saudi Arabia, they had no intention of ever returning, and therefore should not have been held liable for Virginia individual income taxes for any of the time during which they resided abroad.
DETERMINATION
I have enclosed a copy of a determination letter issued by the department involving facts very similar to those presented in this case. Please also find enclosed a copy of the Virginia Individual Income Tax Regulation section referenced in this letter.
Based on all of the facts and circumstances presented and the materials enclosed, I find that intent to permanently abandon Virginia domicile by the taxpayers in this case has not been established.
Accordingly, I find no basis for relief from the individual income tax assessments made in this case, and the taxpayers are hereby directed to file amended returns for 1982 and 1983 based on their federal returns for these periods, within sixty days of the date of this letter. The department will then issue revised assessments to the taxpayers under separate cover.
Sincerely,
W. H. Forst
Tax Commissioner
Rulings of the Tax Commissioner