I got a 'Detail Bill Information' notice a month after my original assessment -- does that give me a fresh 90 days to appeal?

Plain-English summary

This is a short, procedural ruling that turns entirely on what counts as a "notice of assessment" for purposes of Virginia's 90-day appeal deadline. Virginia Code § 58.1-1821 gives a taxpayer only 90 days from the date of "such assessment" to apply for relief to the Tax Commissioner. A Department regulation, 23 VAC 10-20-165 A, defines "notice of assessment" precisely: it's the Department's official form labeled "Notice of Assessment," containing the assessment date, amount, tax type, taxable period, account number, bill number, and taxpayer name. Critically, the regulation specifies that "a subsequent statement of balance due the department does not constitute a new notice of assessment" -- including reports of payments applied, updated bills reflecting more accrued interest, or other changes to an existing assessment.

Here, the Department's actual Notice of Assessment was issued November 10, 2021, making the 90-day appeal deadline February 8, 2022. A follow-up "Detail Bill Information" notice went out December 20, 2021 -- but under the regulation's plain terms, that's exactly the kind of subsequent statement that does NOT reset the clock. The taxpayer's appeal correspondence wasn't mailed until March 11, 2022, well after both the original 90-day deadline and even after the December follow-up notice. Because the only document that could start the appeal clock was the original November assessment, and the appeal came far too late measured from that date, the Department found the appeal barred by the statute of limitations. Since the assessment had already been paid in full, no refund was issued.

What this means for you

Anyone who receives a follow-up bill, balance statement, or "detail" notice after their original tax assessment

Only the Department's official "Notice of Assessment" starts your 90-day appeal clock. A later statement that simply updates your balance, reflects a payment, or adds accrued interest -- even if it looks like a new bill -- doesn't create a new appeal deadline. Count your 90 days from the original assessment date, not from any later correspondence about the same debt.

Taxpayers unsure which document to treat as their "assessment" for appeal-deadline purposes

Look for the Department's form specifically labeled "Notice of Assessment," which will show the assessment date, amount, tax type, taxable period, account number, and bill number. If a later document is instead a payment report, an updated bill with more interest, or some other change to an existing assessment, it's not a fresh notice of assessment under Virginia's own regulatory definition.

Anyone who's already paid an assessment in full and is considering a late appeal

If your appeal is time-barred, the Department won't reach the merits regardless of payment status, and no refund is available on a time-barred appeal.

Common questions

Q: I got a "Detail Bill Information" letter about my tax debt after my original assessment -- does that reset my 90 days to appeal?
A: No. Under 23 VAC 10-20-165 A, a subsequent statement of balance due -- including updated bills, payment reports, or additional accrued interest -- is specifically defined as NOT a new notice of assessment, so it doesn't restart your appeal clock.

Q: What exactly counts as the "notice of assessment" that starts my 90 days?
A: The Department's official form specifically labeled "Notice of Assessment," containing the assessment date, amount, tax type, taxable period, account number, bill number, and your name. Correspondence proposing adjustments before an assessment is made also isn't a notice of assessment -- it's meant to let you fix errors before an assessment happens at all.

Q: I already paid my assessment in full -- can a late appeal still get me a refund?
A: Not if the appeal itself is barred by the statute of limitations. The Department won't rule on the merits of an untimely appeal regardless of whether you've already paid.

Citations and references

• Va. Code § 58.1-1821 (90 days from the date of assessment to apply for correction to the Tax Commissioner)
• 23 VAC 10-20-165 A (defines "notice of assessment"; a subsequent statement of balance due -- including payment reports, updated bills with added interest, or other changes -- is not a new notice of assessment; pre-assessment correspondence proposing adjustments is also not a notice of assessment)

Subject

Administration; Assessment - Official Notice, Appeals - 90 Day Period of Limitations

Source

• Landing page: Virginia Laws, Rules & Decisions
• Ruling: P.D. 22-112

Original ruling text

June 9, 2022

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

Dear *:

The Virginia Department of Taxation is in receipt of the correspondence filed on behalf of *. Virginia Code § 58.1-1821 provides, in pertinent part, 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.”

Title 23 of the Virginia Administrative Code (VAC) 10-20-165 A defines notice of assessment as:

The department's official form labeled "Notice of Assessment" that contains written information that sets out the date of the assessment, amount of assessment, the tax type, taxable period, account number, bill number and name of the taxpayer. A subsequent statement of balance due the department does not constitute a new notice of assessment. Such subsequent statements include reports of payments applied to assessments, updated bills reflecting additional accrued interest, or other changes to an assessment. A notice of assessment may be preceded by correspondence proposing adjustments to a filed return based on an audit or other information received by the department. Such correspondence is not a notice of assessment but is intended to provide taxpayers an opportunity to correct any errors before an assessment is made. [Emphasis added.]

The Notice of Assessment was issued to the Taxpayer on November 10, 2021. The statute of limitations, for submitting the full appeal to the Tax Commissioner, expired on February 8, 2022. The Taxpayer’s correspondence was mailed to the Department on March 11, 2022. The Detail Bill Information was issued to the Taxpayer on December 20, 2021. The Detail Bill Information does not constitute a new notice of assessment as provided in Title 23 VAC 10-20-165 A. In accordance with the aforementioned authorities, the Taxpayer’s appeal to the Tax Commissioner is barred by the statute of limitations. The assessment has been paid in full, and a refund is not warranted.

The cited regulation is available on-line at www.tax.virginia.gov in the Laws, Rules and Decisions 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/4124P