The Department says it collected on my old tax bills before the deadline expired, but I haven't seen proof — can I get the Department to reconsider its ruling?

Plain-English summary

In an earlier ruling, P.D. 24-23, the Department concluded that its collection actions on a taxpayer's assessments for the 2009 through 2013 tax years could continue, because collection had been initiated on every one of those assessments before Virginia's collection statute of limitations (§ 58.1-1802.1) ran out. The taxpayer asked the Department to reconsider that determination, saying she had never actually seen proof the collection actions occurred.

Reconsideration has a narrow, four-part gate. Under 23 VAC 10-20-165 F, a taxpayer can only get a final determination reconsidered by meeting ONE of four specific criteria, and the request must arrive within 45 days of the determination letter:

1. The Tax Commissioner misstated or got the facts wrong, and correcting that would change the outcome;
2. The law has changed — by legislation, court decision, or other authority — for the tax periods at issue;
3. The Department misapplied its own policy, and applying it correctly would change the outcome; or
4. The taxpayer has new evidence or documentation that wasn't available when the original appeal was filed, and it could change the outcome.

A request for proof doesn't fit any of the four boxes. The taxpayer's reconsideration request wasn't really challenging a misstated fact, a change in law, a policy error, or presenting new evidence — she was simply asking for confirmation that the collection actions the Department described actually took place. None of the four reconsideration criteria applied.

The Department answered anyway. Even though the taxpayer's request didn't technically qualify for reconsideration, the Department didn't just deny it on a technicality — it enclosed a list and copies of all the collection documents as proof that collection actions had, in fact, been timely initiated. It also updated her on where things stood: the 2009 and 2011 assessments had since been paid in full, and an updated bill for the remaining tax years would follow, with a warning to make payment arrangements promptly or collection actions would resume.

What this means for you

Anyone questioning a Department ruling about their case history

A reconsideration request needs to fit one of the four specific legal grounds — a misstated fact, a change in law, a misapplied policy, or genuinely new evidence. Simply wanting more documentation or explanation isn't, on its own, a basis for reconsideration, even if it's a completely reasonable thing to want.

If you doubt whether the Department actually took a collection action it claims it did

Ask for the documentation directly, alongside (or instead of) framing it as a formal reconsideration request — as this ruling shows, the Department may provide the underlying records as a matter of course, even outside the formal reconsideration process.

Accountants and tax professionals

Keep the 45-day reconsideration clock in mind for every final determination a client receives, and match any reconsideration request explicitly to one of the four 23 VAC 10-20-165 F criteria in the request itself — a request that doesn't map to one of the four is likely to be treated as outside the reconsideration process, even if the Department chooses to respond informally anyway.

Common questions

Q: What are the four grounds for getting a Virginia tax determination reconsidered?
A: A misstated fact in the original determination, a change in the law since the determination, the Department's misapplication of its own policy, or new evidence that wasn't available at the time of the original appeal — each within 45 days of the determination letter.

Q: Is wanting more proof or explanation a valid reason for reconsideration?
A: Not on its own — it doesn't fit any of the four specific criteria, though the Department may still choose to provide additional documentation as a courtesy.

Q: What happened to this taxpayer's underlying tax debt?
A: The 2009 and 2011 assessments were already paid in full; an updated bill covering the remaining years was to follow, with collection actions to resume if payment arrangements weren't made.

Citations and references

Statutes and regulations:

• 23 VAC 10-20-165 F — four criteria and 45-day deadline for reconsideration of a final determination
• Va. Code § 58.1-1802.1 — collection statute of limitations
• Va. Code § 58.1-1822 — final determination procedure

Prior ruling referenced (described here, not linked): P.D. 24-23 (3/12/2024) (the Department's original determination that collection actions for 2009-2013 timely commenced).

Source

• Landing page: Virginia Laws, Rules & Decisions
• Ruling: P.D. 25-18

Original ruling text

February 12, 2025

Re: § 58.1-1821 Application: Individual Income Tax

Dear *:

This will respond to your letter submitted on behalf of your client, * (the “Taxpayer”), in which you seek a reconsideration of the Department’s determination, issued as Public Document (P.D.) 24-23 (3/12/2024).

FACTS

In P.D. 24-23, the Department concluded that collection actions for the assessments issued for the taxable years ended December 31, 2009 through 2013 could continue because the Department had initiated collections actions on all of the assessments prior to the expiration of the statute of limitations. The Taxpayer requests reconsideration of that determination, contending that she has not received proof that such collection actions occurred.

DETERMINATION

Title 23 of the Virginia Administrative Code (VAC) 10-20-165 F provides that a taxpayer who disagrees with the Department’s final determination issued pursuant to Virginia Code § 58.1-1822 may request a reconsideration of the determination. In order to grant a request for reconsideration, the request must be received by the Department no later than 45 days after the date of the determination letter, and a taxpayer must meet one of four specific criteria set forth in that section:

1. The facts upon which the original determination is based are misstated by the Tax Commissioner or are inaccurate, and the determination would have a different result based on a correction of the Tax Commissioner’s misstatement of the facts presented or a clarification of the original facts presented in the taxpayer’s administrative appeal;

2. The law upon which the original determination is based has been changed by legislation, court decision, or other authority effective for the tax period(s) at issue;

3. The policy upon which the original determination is based is misapplied, and the determination would have a different result based on the application of the proper policy; or

4. The taxpayer has discovered additional evidence or documentation that was not available to the taxpayer at the time the original administrative appeal was filed with the Department, and the additional evidence or documentation could produce a result different from the original determination.

In this case, none of the reconsideration criteria has been satisfied. The Taxpayer is merely seeking confirmation as to whether collection actions timely occurred within the statutory limitation period provided under Virginia Code § 58.1-1802.1. As proof of the Department’s actions, both a list and copies of all the collection documents are enclosed.

The Department’s records indicate that the assessments for the 2009 and 2011 taxable years have been paid in full. An updated bill for the other assessments will be issued shortly. The Taxpayer is advised to make payment arrangements as soon as possible or collections actions will resume.

The Code of Virginia sections and regulation cited are available online at law.lis.virginia.gov. The public document cited is available at 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 or **@tax.virginia.gov.

Sincerely,

James J. Alex

Tax Commissioner

Commonwealth of Virginia

AR/4905.B

Related Documents

24-23