I got a new or consolidated bill for an old tax assessment. Does that new bill restart my 90-day deadline to appeal?

Plain-English summary

The taxpayer never filed Virginia returns for 2010 and 2011, so the Department assessed the tax itself — in March 2014 for 2010 and March 2015 for 2011 — and pursued collection over the following years. In May 2024, nearly a decade later, she filed an application for correction challenging the assessments. The Tax Commissioner held the appeal was time-barred.

The 90-day appeal deadline. Anyone assessed a tax administered by the Department may apply to the Tax Commissioner for relief, but only within 90 days of the date of assessment (§ 58.1-1821), and the Department strictly enforces that limit (23 VAC 10-20-165 B 1). The 2014 and 2015 assessments were long final by the time she appealed in 2024.

Why the 2024 bill didn't help — the key point. She argued that a consolidated bill postmarked April 2024 restarted her 90-day window. It did not. The "date of assessment" is the date on the official Notice of Assessment (23 VAC 10-20-165 A), and the same regulation is explicit that a later "statement of balance due" is not a new notice of assessment. That category includes reports of payments applied, updated bills reflecting additional accrued interest, and other changes to an assessment. A routine collection bill or consolidated statement simply reflects an existing debt; it is not a fresh assessment, so it does not reopen or extend the appeal deadline.

The refund route was closed too. The alternative — a protective claim for refund — must be filed within three years of the date of assessment (§ 58.1-1824), which had also expired. And a protective claim is only available if the assessment has already been paid in full (23 VAC 10-20-190 A 1), which was not the case here.

The merits (offered only for information). Even though the appeal was too late, the Commissioner explained the basis for the assessments. Virginia conforms to the Internal Revenue Code and starts from federal adjusted gross income (§ 58.1-301); a Virginia resident who must file federally must also file in Virginia unless exempt (§ 58.1-341, § 58.1-321). When a resident does not file, the Department may obtain federal return data from the IRS (IRC § 6103(d)). The IRS data showed W-2 wages each year and 1099-INT interest for 2010, exceeding the filing threshold, and she provided no objective evidence those figures were wrong. The balances, with interest, remain due within 30 days.

What this means for you

If you get a new or consolidated bill for an old assessment

Do not assume a fresh bill gives you a fresh 90 days to appeal. Only the original Notice of Assessment starts the clock. Updated bills, interest recalculations, payment-applied notices, and consolidated statements are not new assessments and do not restart your appeal window. If you want to contest an assessment, calendar the deadline from the date on the Notice of Assessment — 90 days for an administrative appeal — and act well before it expires.

Non-filers assessed from IRS data

If you don't file, Virginia can build an assessment from information the IRS shares (W-2s, 1099s). Those assessments become final and collectible if you let the 90-day appeal window and the three-year protective-claim window pass. The cleanest fix is to file the missing returns and appeal on time, with documentation, rather than waiting for a collection bill and trying to reopen a years-old assessment.

Tax professionals

When a client surfaces with an old balance and a recent bill, check the date of the original Notice of Assessment, not the date of the latest statement — that date governs both the § 58.1-1821 90-day appeal and the § 58.1-1824 three-year protective claim. If both have run, note that a protective claim also requires full payment first (23 VAC 10-20-190 A 1). The merits may still be discussed by the Department, but only the timely remedies actually reduce the liability.

Common questions

Q: I received a new bill for a tax assessment from years ago. Can I appeal within 90 days of that bill?
A: No. The 90 days run from the date of the original Notice of Assessment, not from a later bill. By regulation, an updated or consolidated bill (including one reflecting added interest) is not a new notice of assessment and does not restart the deadline.

Q: What actually counts as a "Notice of Assessment"?
A: The Department's official form labeled "Notice of Assessment," showing the assessment date, amount, tax type, period, account number, bill number, and taxpayer name. A subsequent statement of balance due is not one.

Q: The appeal deadline passed. Can I still get a refund?
A: Only through a protective claim for refund, which must be filed within three years of the date of assessment and requires the assessment to be paid in full first. Here both the 90-day and three-year windows had expired.

Q: The assessment was based on IRS data I never confirmed. Does that make it invalid?
A: Not by itself. Virginia may assess a non-filer using IRS information (IRC § 6103(d)). The assessment stands unless you timely appeal and provide objective evidence the figures are wrong — which did not happen here.

Citations and references

Statutes and regulations:

• Va. Code § 58.1-1821; 23 VAC 10-20-165 B 1 — 90-day administrative appeal deadline, strictly enforced
• 23 VAC 10-20-165 A — definitions of "date of assessment" and "notice of assessment"; a later statement of balance due (updated or consolidated bill) is not a new notice of assessment
• Va. Code § 58.1-1824; 23 VAC 10-20-190 A 1 — three-year protective claim for refund, available only if the assessment is paid in full
• Va. Code § 58.1-301, § 58.1-341, § 58.1-321 — Virginia conformity and the resident filing requirement
• IRC § 6103(d) — Department's authority to obtain federal return information from the IRS

Authorities the Commissioner relied on (described here, not linked): prior Department public documents on assessing non-filing residents from IRS-supplied information (P.D. 14-33 and 24-86).

Source

• Landing page: Virginia Laws, Rules & Decisions
• Ruling: P.D. 25-116

Original ruling text

November 7, 2025

Re: § 58.1-1821 Appeal: Individual Income Tax

Dear *:

This will respond to your letter in which you seek correction of the individual income tax assessments issued to you (the “Taxpayer”) for the taxable years ended December 31, 2010, and 2011.

FACTS

The Department issued assessments to the Taxpayer in March 2014 and March 2015 after she failed to file Virginia individual income tax returns for the 2010 and 2011 taxable years, respectively. The Department has initiated a number of collection actions over time, but balances remain due, and the Department continues to take collection actions. The Taxpayer filed an application for correction of the assessments in May 2024, contesting the validity of the assessments.

DETERMINATION

Deadline For Filing Appeals

Virginia Code § 58.1-1821 states 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 B 1 provides that “[t]he Department strictly enforces the 90-day limitations period for filing a timely administrative appeal. A taxpayer must file a complete appeal within 90 calendar days after the date of assessment.”

In this instance, the assessments for the 2010 and 2011 taxable years were issued in March 2014 and March 2015, respectively. The Taxpayer filed this application in May 2024, well after the 90-day limitations period. Further, the time to file a protective claim for refund under Virginia Code § 58.1-1824 expired three years after the assessments were issued. In addition, a protective claim is only available as a remedy if the assessment has been paid in full. See Title 23 VAC 10-20-190 A 1.

The Taxpayer asserts that the issuance of a consolidated bill notice postmarked in April 2024 started the 90-day period for filing an application for correction under Virginia Code § 58.1-1821. “Date of assessment” is defined, in part, as the date stated on the “notice of assessment.” See Title 23 VAC 10-20-165 A.

Title 23 VAC 10-20-165 A further 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. [Emphasis added.]

Under this regulation, the consolidated bill notice postmarked April 2024 does not constitute a notice of assessment that would extend the Taxpayer’s time for filing an application for correction of the original assessments. Accordingly, the Taxpayer’s application is time-barred.

Taxation of Virginia Residents

The statute of limitation issues notwithstanding, the Department will explain the bases for the assessments for informational purposes. Virginia Code § 58.1-301 provides, with certain exceptions, that the terminology and references used in Title 58.1 of the Code of Virginia will have the same meaning as provided in the Internal Revenue Code (IRC) unless a different meaning is clearly required. Conformity does not extend to terms, concepts, or principles not specifically provided in the Code of Virginia . For individual income tax purposes, Virginia conforms to federal law, in that it starts the computation of Virginia taxable income (VTI) with federal adjusted gross income (FAGI). Income properly included in the FAGI of a Virginia resident is subject to taxation by Virginia, unless it is specifically exempt as a Virginia modification pursuant to Chapter 3 of Title 58.1 of the Code of Virginia.

Further, Virginia Code § 58.1-341 provides that a Virginia resident who is required to file a federal income tax return is also required to file a Virginia income tax return, unless the resident is exempt from filing under Virginia Code § 58.1-321. When a resident does not file a proper Virginia return, IRC § 6103(d) authorizes the Department to obtain information from the IRS that will help in determining the resident's tax liability. See Public Document (P.D.) 14-33 (3/7/2014) and P.D. 24-86 (9/13/2024).

In this case, it appears that the Taxpayer was a resident of Virginia for each of the taxable years at issue. As such, she would have been subject to Virginia income tax and required to file Virginia resident income tax returns if she had sufficient income to exceed the filing threshold.

Based on the information the Department received from the IRS, the Taxpayer had income reported on Form W-2 each year and Form 1099-INT for 2010. The total amount of income exceeded the filing threshold each year, and the assessments were based on such amounts.

CONCLUSION

The Taxpayer failed to timely file an application for correction of the assessments or make a valid protective claim for refund for either of the taxable years at issue. Even if she had, the Department’s assessments were based on information obtained from the IRS as permitted under Virginia law, and the Taxpayer has not provided any objective evidence that the information was incorrect.

Therefore, the assessments issued for taxable years ended December 31, 2010, and 2011, remain due and payable. The Taxpayer will receive updated bills that will include accrued interest to date. The Taxpayer should remit the balance due within 30 days of the bill dates to avoid the accrual of additional interest and possible collection actions.

The Code of Virginia sections and regulations cited are available online at law.lis.virginia.gov. The public documents cited are available at www.tax.virginia.gov in the Laws, Rules, & Decisions section of the Department’s website. If you have any questions regarding this determination, you may contact * in the Office of Tax Policy and Legal Affairs, Tax Adjudication and Resolution Division, at ***.

Sincerely,

James J. Alex
Tax Commissioner
Commonwealth of Virginia

AR/4957.Y

Related Documents

14-33

24-86