What happens when a Virginia taxpayer first supplies documents supporting a sales-tax refund claim during the administrative appeal?
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This page answers the general question as of 2020. Ezel answers yours, under current Virginia tax law, with citations.
Plain-English summary
The taxpayer provided documents during its appeal that it had not supplied during the refund audit. Rather than decide whether the evidence substantiated the refund, the Tax Commissioner closed the appeal and sent the documents to field audit staff for review and appropriate revision.
If disputed issues remained after the refund audit was revised, the taxpayer could file another appeal within 90 days of that revision under Va. Code § 58.1-1821 and 23 VAC 10-20-165.
What this means for you
New refund evidence may return the case to the auditor before the Tax Commissioner reaches the merits. Track the revised-audit notice because it starts a new appeal window.
Common questions
Did the ruling approve the refund? No. It referred the documents to audit staff for review.
Could the taxpayer appeal again? Yes, within 90 days after the refund audit revision if issues remained.
Citations and references
- Va. Code § 58.1-1821.
- 23 VAC 10-20-165.
Source
- Landing page: Virginia Laws, Rules & Decisions
- Ruling: P.D. 20-53
Original ruling text
April 6, 2020
Re: § 58.1-1821 Refund: Retail Sales and Use Tax
Dear *:
The Department previously acknowledged receipt of your appeal filed on behalf of * (the “Taxpayer”). The main contention in the appeal relates to documentation the Taxpayer was not able to provide during the audit review to substantiate the refund claim. The Taxpayer has provided this documentation upon appeal.
The documentation will be referred to the appropriate field audit staff for review and to make adjustments, as appropriate. At this time the appeal is being closed. At the conclusion of the auditor’s review, should any issues remain, the Taxpayer may submit an appeal within 90 days of the refund audit revision in accordance with Virginia Code § 58.1-1821 and Title 23 of the Virginia Administrative Code 10-20-165.
If you have any questions regarding the review of documentation, you may contact the auditor. If you have any questions about the appeals process, please contact * in the Department’s Office of Tax Policy, Appeals and Rulings, at ***.
Sincerely,
Craig M. Burns
Tax Commissioner
AR/2036L
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