Tax Type
Individual Income Tax
Description
Resident returns filed in error; Refund of tax
Topic
Payment and Refund
Residency
Date Issued
08-12-1991
August 12, 1991
Re: §58.1-1821 Application: Individual Income Tax
Dear********************
This will reply to your letters of December 17, 1990 and March 11, 1991 in which you protest the assessments of Virginia income tax made by the Department for taxable years 1986 through 1989.
FACTS
Based upon your correspondence of January 9, 1990, February 14, 1990, and the Virginia Domicile Questionnaire completed as of February 14, 1990, the department ruled by P.D. 90-41 (3/19/90) that you were not domiciled in Virginia for the taxable years 1985 through 1988. Absent any additional information with respect to taxable year 1989, the department will presume that you were not domiciled in Virginia for 1989, either.
Notwithstanding the department's determination for the years in issue, you voluntarily filed Virginia resident income tax returns in May 1990, and paid the Virginia income tax on your total income from all sources. You also filed income tax returns for those years with the District of Columbia, as a resident, paying tax to the District of Columbia on the same income which you reported and paid taxes to Virginia.
In processing the Virginia income tax returns, referenced herein, the department disallowed the credit for taxes paid to District of Columbia, and subsequently assessed additional income taxes for those years as a result of the disallowance of the credit.
DETERMINATION
Va. Code §58.1-332(B) provides a credit for taxes paid other states whenever a nonresident individual of this Commonwealth has become liable for income tax to the state where he resides upon his Virginia taxable income for the taxable year, derived from Virginia sources and subject to taxation under this chapter.
Because you were not a domiciliary resident of Virginia for the years in issue, and because you do not have income from Virginia sources for those years, you have no Virginia tax liability. Therefore, you do not qualify for the credit.
The department will administratively correct your erroneous filings for taxable years 1986 through 1989. As a result, the assessments for penalty and interest have been abated, and the income tax which you voluntarily paid for those years will be refunded to you.
Sincerely,
W. H. Forst
Tax Commissioner
Rulings of the Tax Commissioner