Tax Type
Corporation Income Tax
Description
Statute of Limitation, Assessment and Payment of Deficiency
Topic
Collection of Tax
Date Issued
11-18-1998
November 18, 1998
Re: Ruling Request: Corporate Income Tax
Dear *****
This will reply to your letter in which you request a ruling regarding the effective date of 1998 changes to Code of Virginia § 58.1-1825 made by the General Assembly in House Bill (HB) 630 (Chapter 529,1998 Acts of Assembly).
FACTS
Prior to HB 630, taxpayers could make an application to the court for the correction of an erroneous or improper assessment of taxes administered by the Tax Commissioner in one of two ways. A taxpayer could file suit within three years of the date the assessment was made and 1) either pay the assessment within the three-year period or 2) posts bond within 90 days of the assessment, or within one year of the final determination of a protective claim for refund. In order to file a protective claim with the department, a taxpayer must pay the assessment and file a claim within three years of the date the tax was assessed.
During the 1998 Session of the General Assembly, Code of Virginia § 58.1-1825 was amended to expand the statute of limitations for taxpayers seeking court relief of a state tax assessment to include suits filed within one year after the Tax Commissioner's final determination. You ask for a ruling concerning the applicability of this amendment to appeals with the Tax Commissioner filed pursuant to Code of Virginia § 58.1-1821 before the effective date of HB 630.
RULING
Because no effective date was specified in HB 630, it became effective on July 1, 1998. Code of Virginia § 58.1-1825, as amended by HB 630, states that a taxpayer may apply to a circuit court for tax relief up to "one year from the date of the Tax Commissioner's determination under § 58.1-1822.' Because the 1998 amendment is clearly based on when a determination is made pursuant to Code of Virginia ***** § 58.1-1822, the provisions of HB 630 are effective for all the Tax Commissioner's final determinations made on or after July 1, 1998.
If you have any questions, you may contact ***** at *****.
Sincerely,
Danny M. Payne
Tax Commissioner
OTP/18020O
Re: Ruling Request: Corporate Income Tax
Dear *****
This will reply to your letter in which you request a ruling regarding the effective date of 1998 changes to Code of Virginia § 58.1-1825 made by the General Assembly in House Bill (HB) 630 (Chapter 529,1998 Acts of Assembly).
FACTS
Prior to HB 630, taxpayers could make an application to the court for the correction of an erroneous or improper assessment of taxes administered by the Tax Commissioner in one of two ways. A taxpayer could file suit within three years of the date the assessment was made and 1) either pay the assessment within the three-year period or 2) posts bond within 90 days of the assessment, or within one year of the final determination of a protective claim for refund. In order to file a protective claim with the department, a taxpayer must pay the assessment and file a claim within three years of the date the tax was assessed.
During the 1998 Session of the General Assembly, Code of Virginia § 58.1-1825 was amended to expand the statute of limitations for taxpayers seeking court relief of a state tax assessment to include suits filed within one year after the Tax Commissioner's final determination. You ask for a ruling concerning the applicability of this amendment to appeals with the Tax Commissioner filed pursuant to Code of Virginia § 58.1-1821 before the effective date of HB 630.
RULING
-
- Code of Virginia §1-12 provides:
-
- All laws enacted at a regular session of the General Assembly, including laws which are enacted by actions taken during the reconvened session following a regular session, but excluding general appropriations acts and emergency acts, shall take effect on the first day of July following the adjournment of the regular session at which they were enacted, unless a subsequent date is specified.
Because no effective date was specified in HB 630, it became effective on July 1, 1998. Code of Virginia § 58.1-1825, as amended by HB 630, states that a taxpayer may apply to a circuit court for tax relief up to "one year from the date of the Tax Commissioner's determination under § 58.1-1822.' Because the 1998 amendment is clearly based on when a determination is made pursuant to Code of Virginia ***** § 58.1-1822, the provisions of HB 630 are effective for all the Tax Commissioner's final determinations made on or after July 1, 1998.
If you have any questions, you may contact ***** at *****.
Sincerely,
Danny M. Payne
Tax Commissioner
OTP/18020O
Rulings of the Tax Commissioner