Did a notice of intent preserve a Virginia tax appeal when no complete appeal was filed within the cited 90-day period?

Subject

A notice of intent did not preserve an incomplete tax appeal

Plain-English summary

Virginia barred the appeal because the taxpayer never filed a complete application within the stated 90-day period. The assessment was issued November 3, 2008, making February 2, 2009 the deadline identified by the Department.

The taxpayer had submitted a notice of intent, but Va. Code § 58.1-1821 required the application itself to fully state the grounds for relief and all relevant facts. No complete appeal had arrived by the date of the ruling, so the assessment was deemed correct and collection action resumed.

What this means for you

• A placeholder or notice of intent may not satisfy a statute requiring a complete appeal.
• State every ground and relevant fact by the applicable deadline.
• Preserve proof of the assessment date and delivery of the complete submission.
• Check current law and instructions; this ruling applied the process to a 2008 assessment.

Common questions

What was due by February 2, 2009?

A complete appeal stating the taxpayer's grounds and relevant facts.

Was a notice of intent enough?

No. The Commissioner treated the appeal as incomplete and time-barred.

What happened to the assessment?

It remained correct as issued, and collection action resumed.

Citations and references

• Va. Code § 58.1-1821.
• P.D. 06-140 (Administrative Appeal Guidelines for Tax Assessments).

Source

• Landing page: Virginia Laws, Rules & Decisions
• Ruling: P.D. 09-33

Original ruling text

March 31, 2009

Re: § 58.1-1821 Application: Retail Sales and Use Tax

Dear *:

This letter is in response to the notice of intent to file an administrative appeal submitted by you regarding the retail sales and use tax assessment issued to * (the "Taxpayer") for the period October 2005 through September 2008.

Virginia Code § 58.1-1821 states, "Any person assessed with any tax administered by the Department of Taxation may, within ninety days from the date of such assessment, apply for relief to the Tax Commissioner. Such application shall be in the form prescribed by the Department and shall fully set forth the grounds upon which the taxpayer relies and all facts relevant to the taxpayer's contention."

The retail sales and use tax assessment cited in your notice of intent to appeal was issued to the Taxpayer on November 3, 2008. Pursuant to Va. Code § 58.1-1821 and the Administrative Appeal Guidelines for Tax Assessments issued by the Virginia Department of Taxation, published as Public Document 06-140 (11/29/06), a complete appeal was required to be filed with the Tax Commissioner by February 2, 2009, ninety days after the date of assessment. As of the date of this letter, a complete appeal, detailing the grounds upon which the Taxpayer relies and all relevant facts, has not been received. Pursuant to Va. Code § 58.1-1821, the Taxpayer's appeal to the Tax Commissioner is barred by the statute of limitations. Accordingly, the assessment is deemed correct as issued. Collection action will resume on the unpaid bill.

The Code of Virginia section and public document cited are available on-line at www.tax.virginia.gov in the Tax Policy Library section of the Department's web site. If you have any questions about this response, you may contact * in the Department's Office of Tax, Appeals and Rulings, at ***.

Sincerely,

Janie E. Bowen

Tax Commissioner

AR/1-3161761336.P