Tax Type
Individual Income Tax
Description
Refund statute of limitations; Amended federal return
Topic
Payment and Refund
Statute of Limitations
Date Issued
01-11-1990
January 11, 1990
Re: Request for Ruling: Individual Income Tax
Dear******************
This will reply to your letter of September 21, 1989 on behalf of *************(the "taxpayer") requesting clarification of prior denials by the department with regard to the taxpayer's request for a refund of individual income tax for the taxable year 1984.
FACTS
The taxpayer's 1984 Federal and Virginia individual income tax returns were mailed on or about July 1, 1988. Previously, both federal and state extensions had been filed and approved extending the return due dates to October 15, 1985 and November 1, 1985, respectively. Both returns indicated refunds due because withholding exceeded tax liability. The Internal Revenue Service honored the return and sent the refund, plus interest, to the taxpayer. The Department of Taxation has denied the taxpayer's request for a refund on the grounds that the taxpayer's request was not made within the applicable statute of limitations.
The taxpayer disputes the department's position basing his argument upon the premise that had the "extended due date" been the starting point for the statute of limitations period, the taxpayer's right to claim a refund would have been protected by his having filed the request on July 1, 1988. The taxpayer is requesting a ruling to clarify the beginning date of the statute of limitations.
RULING
Under Va. Code §58.1-1823, a claim for refund should be filed "within three years from the last day prescribed by law for the timely filing of the return". §58.1-344 provides, however, that "whenever any individual ... has been allowed or granted an extension ... the due date ... shall be extended ..."
Since the claim for refund was filed within the statutory period, as extended, I find basis for granting the taxpayer's request. A refund, together with interest will be forthcoming.
Sincerely,
W. H. Forst
Tax Commissioner
Rulings of the Tax Commissioner