Did a notice of intent and incomplete protest preserve Virginia's 90-day deadline for appealing a sales-tax assessment?

Subject

Incomplete protest did not preserve the 90-day sales-tax appeal deadline

Plain-English summary

Virginia barred the appeal because the taxpayer did not file a complete administrative challenge within 90 days of the assessment. The Department issued the audit assessment on June 2, 2009, making August 31 the deadline.

The taxpayer sent a notice of intent and an August protest, but supplied no documentation or statutory citations supporting the objections. The Department explained what a complete appeal required and allowed additional time, yet the taxpayer still did not complete the filing.

Virginia's published appeal procedures said an incomplete appeal or notice of intent did not satisfy or extend the statutory period. The application was therefore time-barred, and the ruling did not evaluate the underlying May 2003-March 2009 audit findings.

What this means for you

• A placeholder notice did not preserve the deadline under the rules applied here.
• A complete appeal needed the grounds, supporting law, and documentation.
• Extra time offered after an incomplete filing did not change the expired statutory deadline.
• Missing the procedural window prevented merits review.

Common questions

When was the complete appeal due?

August 31, 2009.

Did the August protest qualify?

No. It lacked the required support and grounds.

Did Virginia decide whether the tax assessment was correct?

No. The application was dismissed as untimely.

Citations and references

• Va. Code § 58.1-1821.
• Virginia Public Document 06-140, § 4.2(D).

Source

• Landing page: Virginia Laws, Rules & Decisions
• Ruling: P.D. 10-5

Original ruling text

January 13, 2010

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

Dear *:

This is in response to your letter written on behalf of * (the "Taxpayer") in which seek correction of the retail sales and use tax assessment issued for the period May 2003 through March 2009.

The Department issued an audit assessment to the Taxpayer on June 2, 2009, for the aforementioned period. In a letter dated August 14, 2009, you submitted a notice of intent requesting an appeal of the audit findings. You did not provide documentation or statutory citations to support the grounds for your objections. On September 24, 2009, you were notified in writing by the Department that additional time would be allowed for the Taxpayer to present a full and complete administrative appeal. The notification also included instructions as to the filing of an acceptable appeal. Although you indicated that a complete appeal would be filed within the additional time granted, it was not submitted.

Virginia Code § 58.1-1821 states, "Any person assess with any tax administered by the Department of Taxation may, within ninety days from the date of the assessment, apply for relief to the Tax Commissioner." Public Document (P.D.) 06-140 (11/29/06) section 4.2 D states, "An incomplete appeal or notice of intent to appeal does not satisfy or extend the 90-day limitation period."

Pursuant to both Va. Code § 58.1-1821 and P.D. 06-140, the Taxpayer was

required to file a complete administrative appeal no later than August 31, 2009. The Taxpayer failed to meet this deadline and also failed to file a complete appeal by the additional time granted by the Department. Although the protest letter was received on August 24, 2009, it did not satisfy the requirement that a complete administrative appeal be filed with the Department within the 90-day period. Therefore, the Taxpayer's application for correction is barred by the statute of limitations.

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 website. If you have any questions about this response, you may contact * in the Department's Office of Tax Policy, Appeals and Rulings, at ***.

Sincerely,

Janie E. Bowen

Tax Commissioner

AR/1-3743800923.M