Tax Type
Individual Income Tax
Description
ACRS Modifications
Topic
ACRS Modifications
Taxable Income
Date Issued
06-27-1989
June 27, 1989
Dear*****************
This is in response to your letter of December 19, 1988, in which you request a ruling as to whether your client is entitled to request a refund of unrecovered ACRS additions.
The taxpayer moved from Virginia in 1982 but continued to own rental property in Virginia. on the Virginia resident return for l 982 the required ACRS addition was added to the taxpayer's income. For the taxable years after l 982 the rental property showed a loss in excess of the required ACRS addition, and the taxpayer had no other income from Virginia sources, so no Virginia nonresident return was required. In l 986 the taxpayer died. Your client, the surviving spouse, did not receive the Virginia property.
Under the regulation recently adopted, VR 630-2-323.1 (copy enclosed), a refund may be requested on behalf of a deceased taxpayer if a final return has been filed and the taxpayer received income from Virginia sources in the final year. However, it is not necessary that a Virginia nonresident return actually be filed when, as in this case, the return would only report a loss.
Since the only Virginia tax ever paid that is attributable . to ACRS modifications was paid with the l 982 Virginia resident return, if the return was a joint or combined return filed by the taxpayer and your client, then your client is eligible to file a request for a refund of the tax paid on the 1982 ACRS addition. If your client did not file a joint or combined return with the taxpayer in l 982, then the request for a refund must be filed by the personal representative of the taxpayer's estate.
Sincerely,
W. H. Forst
Tax Commissioner
Rulings of the Tax Commissioner