Tax Type
Individual Income Tax
Description
Refunds of Tax
Topic
Returns/Payments/Records
Date Issued
02-11-1991
February 11, 1991
Re: §58.1-1821 Application: Individual Income Tax
Dear*****************
This will respond to your letter of August 27, 1990, in which you request a correction of tax and a refund pursuant to Va. Code §58.1-1822.
FACTS
You state that your client, **********(the "taxpayer") originally filed his 1984 Virginia Income Tax Return on September 18, 1988. The taxpayer subsequently filed in September and October of 1988, amended returns for 1984, based on the carryback of net operating losses from 1985 and 1986. The taxpayer has not received a response regarding his amended returns, and is requesting that the Department of Taxation issue a refund for 1984.
You have demonstrated that the taxpayer's refund requests for tax year 1984 were filed with the department within sixty days from the final federal determination for that year.
The department has no record of receiving the taxpayer's original return for 1984 or any payment attributable to that year, other than an estimated income tax in the amount of $**********.
DETERMINATION
Virginia Regulation (VR) 630-2-311.1(8)(A) provides that "[g]enerally, the amended carryback year return must be filed within the statutory period for filing the loss year return." Furthermore, Va. Code §58.1-1823(A) provides that "[a]ny person filing a tax return required for any tax administered by the Department of Taxation may, within three years from the last day prescribed by law for the timely filing of the return, or within sixty days from 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, whichever is later, file an amended return with the Department."
VR 630-2-312(B)(1) provides that an assessment may be made at any time when an individual fails to file a return as required by law. Therefore, the original return for 1984, resubmitted by you with this ruling request, is being processed.
Because you have demonstrated that the amended 1984 returns, which were filed to carry back federal net operating losses for 1985 and 1986, were filed with the department within the appropriate statutory time limits, your refund requests will be processed, accordingly.
Pursuant to Va. Code §58.1-1823, the department will reduce any refund from the department by the amount of any taxes, penalties and interest which are due for the period covered by the amended return, or any past-due taxes, penalties and interest which have been assessed within the appropriate period of limitations.
If you need additional information, please contact the department.
Sincerely,
W. H. Forst
Tax Commissioner
Rulings of the Tax Commissioner