Tax Type
Corporation Income Tax
Description
Alternative method based on accounting records
Topic
Allocation and Apportionment
Date Issued
08-29-1990
August 29, 1990
Re: §58.1-1821 Application; Corporation Income Tax
§58.1-421 Request for alternative method
Dear ****
This is in response to your letter of July 19, 1990, and your accountant's letter of May 30, 1990. We have treated your letters as an application for correction of an assessment of corporation income tax based on your request to use an alternative method of allocation and apportionment. Your proposed method appears to be a separate accounting based on your accounting records.
Under Virginia Regulation VR 630-3-421 (copy enclosed) an alternative method will only be allowed in extraordinary circumstances when the taxpayer has shown by clear and cogent evidence that the statutory method of apportionment produces an unconstitutional or inequitable result in the particular circumstances. The facts you have presented do not demonstrate such extraordinary circumstances.
Accordingly, permission to use an alternative method is denied. The assessment is correct as made and is now due and payable. You will shortly receive an updated bill with interest accrued to date. The bill should be paid within thirty days to avoid the accrual of additional interest.
Sincerely,
W. H. Forst
Tax Commissioner
Rulings of the Tax Commissioner