Did a letter filed on the adjusted 90th-day deadline preserve a Virginia sales-tax appeal when it omitted the grounds and relevant facts?

Subject

Taxpayer's appeal to the Tax Commissioner is barred by the statute of limitations.

Plain-English summary

Virginia barred the administrative appeal because the taxpayer did not submit a complete appeal within 90 days. The assessment was issued November 8, 2010. Because the 90th day fell on Sunday, February 6, the filing deadline moved to Monday, February 7.

The taxpayer sent correspondence dated February 7, but it did not detail the grounds for relief and all relevant facts as Va. Code § 58.1-1821 required. A timely but incomplete letter therefore did not preserve the appeal.

Virginia separately allowed 30 days to give the auditor documentation showing alleged duplicate audit entries. Satisfactory proof could remove those items; otherwise, the assessment would remain correct and collection would resume.

What this means for you

• Calendar the 90-day deadline from the assessment date, including weekend adjustments.
• Submit the grounds, relevant facts, and supporting position by the deadline; a notice of disagreement may not be enough.
• A limited audit correction opportunity does not revive a barred Tax Commissioner appeal.

Citations and references

• Va. Code § 58.1-1821.

Source

• Landing page: Virginia Laws, Rules & Decisions
• Ruling: P.D. 11-25

Original ruling text

February 28, 2011

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

Dear *:

This is in response to your correspondence filed on behalf of * (the "Taxpayer"), in which you contest the retail sales and use tax assessment issued for the period January 2007 through April 2010.

Virginia Code § 58.1-1821 provides that "[a]ny 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."

In this case, the assessment was issued to the Taxpayer on November 8, 2010. The statute of limitations for submitting a complete appeal to the Tax Commissioner expired on February 7, 2011 (the 90th day was February 6, which fell on a Sunday, so the Taxpayer had until February 7 to file its appeal). The correspondence dated February 7, 2011 does not constitute a complete appeal detailing the grounds upon which the taxpayer relies and all relevant facts, as required by Va. Code § 58.1-1821. Pursuant to Va. Code § 58.1-1821 the Taxpayer's appeal to the Tax Commissioner is barred by the statute of limitations.

Your correspondence indicates the audit includes duplicate numbers. The Taxpayer can work with the auditor to ensure this issue is corrected. I will allow the Taxpayer 30 days from the date of this letter to provide the necessary documentation to the auditor to show the audit assessment includes duplicate information. If the documentation is satisfactory to the auditor, the assessment will be corrected to remove the duplicate items. If the documentation is not satisfactory or is not provided within the time allotted, the assessment will be deemed correct as issued and collection action will resume on the unpaid bill.

The Code of Virginia section is 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 Policy, Appeals and Rulings, at ***.

Sincerely,

Craig M. Burns

Tax Commissioner

AR/1-4672020345.P