Tax Type
Corporation Income Tax
Description
Amended Returns, Federal Taxable Income
Topic
Returns and Payments
Date Issued
10-08-1991
October 8, 1991
Re: §58.1-1821 Application; Corporation Income Tax
Dear**************
This will reply to your letter of May 30, 1991, in which you seek correction of an assessment of corporation income tax for *****************(the "Taxpayer").
FACTS
The taxpayer's 1982-1985 federal corporation income tax returns were audited by the IRS. Federal taxable income was increased for the years 1983-1985, resulting in an increase in tax liability. For the tax year 1982, federal taxable income was decreased, resulting in an overpayment. Based on these changes, the taxpayer filed amended Virginia corporation income tax returns with the department on December 26, 1990 and enclosed a check for the total net increase in tax liability (tax liability net of the overpayment). The department did not accept the amended return claiming a refund because it was not filed within 60 days of the final determination of federal tax liability, as provided in Va. Code §58.1-1823. The department assessed additional tax, based on the amount of the overpayment used to off set the amended tax liability.
You request that the department reconsider its disallowance of the refund and abate the assessment. You state that your tax filing schedule prohibited you from filing the amended returns prior to December 26, 1990.
DETERMINATION
Under Va. Code §58.1-1823, an amended return claiming a refund must be filed within three years of the due date of the return or, if later, within 60 days from the final determination of a change in the taxpayer's federal taxable income.
In this case, the amended return claiming a refund was filed more than three years after the due date of the return. Therefore, it is timely filed only if filed within 60 days from the date of final determination of federal tax liability.
The information provided indicates that the final determination was made by the IRS on September 4, 1990; the taxpayer did not notify the department of the change until December 26, 1990, when the amended return for refund was filed. This was clearly beyond the 60 day statutory period for the filing of an amended return for refund. Because the amended return was not filed within the prescribed statutory period, there was no overpayment to either be refunded or to be used to offset the deficiencies for the other tax years.
Accordingly, the assessment is correct and is now due and payable. You will shortly receive an updated bill with interest accrued to date. The bill should be paid within 30 days to avoid the accrual of additional interest.
Sincerely,
W. H. Forst
Tax Commissioner
TPD/5244F
Rulings of the Tax Commissioner