Tax Type
Estate Tax
Description
Refund statute of limitations
Topic
Estates and Trusts
Payment and Refund
Statute of Limitations
Date Issued
04-12-1990
April 12, 1990
Re: §58.1-1821 Application; Estate Tax
§58.1-1823 Refund upon Filing an Amended Return
Dear ****
This is in response to your letter of December 3, 1989 in which you applied for a refund of estate taxes.
Facts
The Virginia estate tax return, due November 19, 1983, was filed and taxes paid on February 17, 1986. An audit of the federal estate tax return by the IRS led to adjustments to the federal taxable estate, and a closing letter was issued on August 8, 1988. An amended Virginia estate tax return claiming a refund was filed July 11, 1989. The amended return was based on the changes made to the federal return during the IRS audit.
The department denied the taxpayer's claim for a refund, stating that the claim was barred by the statute of limitations. The taxpayer appeals this decision.
Discussion
The period for filing an amended return claiming a refund expires three years after the last day prescribed by law for the timely filing of the original return or, if later, 60 days after the final determination of any change or correction in the liability of the taxpayer for any federal tax upon which the state tax is based. Va. Code §58.1-1823. This limitation period applies to all taxes administered by the department.
In this case, the last day prescribed by law for the timely filing of the estate tax return was November 19, 1983; three years from that date was November 19, 1986. The Federal Estate Tax closing letter indicating the final determination of the federal tax liability was issued August 8, 1988; the sixty day period for filing an amended return based on this determination expired October 7, 1988.
The amended return was not filed until July 11, 1989, well after the expiration of the limitations period prescribed by law. Therefore the request for refund must be denied.
Although I appreciate the difficulties encountered in administering the estate, the law clearly imposes a time limit for filing an amended return claiming a refund. The law does not grant me any discretion to waive this requirement.
Accordingly, I must deny your request.
Sincerely,
W. H. Forst
Tax Commissioner
Rulings of the Tax Commissioner