Could Virginia consider a corporate tax appeal filed one day after the 90-day deadline?

Subject

Adjustments related to three intangible holding companies, timely filed appeals

Plain-English summary

A corporation received income-tax assessments dated October 19, 2006 and appealed adjustments involving three intangible holding companies. Its appeal was dated January 18, 2007.

Virginia counted the 90-day appeal period from the calendar day after assessment and included weekends and holidays. The deadline was January 17. Because the corporation filed one day late, the application was barred and the Department did not reach the merits of the disputed adjustments.

What this means for you

• Virginia's administrative tax-appeal period runs for consecutive calendar days.
• A one-day delay can prevent review of the substantive assessment issues.
• Calculate the deadline from the assessment date and preserve proof of timely filing.

Citations and references

• Va. Code § 58.1-1821, 90-day administrative-appeal deadline.
• Administrative Appeal Guidelines § 3(A), calendar-day computation.
• P.D. 06-140, appeal timing.

Source

• Landing page: Virginia Laws, Rules & Decisions
• Ruling: P.D. 07-93

Original ruling text

June 1, 2007

Re: § 58.1-1821 Application: Corporate Income Tax

Dear *:

This will reply to your letter in which you seek correction of the corporate income tax assessments issued to * (the "Taxpayer") for the taxable years ended January 31, 2003 through 2005.

FACTS

The Taxpayer was audited for the taxable years in question. The auditor made a number of adjustments. Assessments, dated October 19, 2006, were issued to the Taxpayer. On January 18, 2007, the Taxpayer filed an administrative appeal contesting adjustments related to three intangible holding companies.

DETERMINATION

Virginia Code § 58.1-1821 provides that "[a]ny person assessed with any tax administered by the Department of Taxation may, within nines days from the date of such assessment, apply for relief to the Tax Commissioner." [Emphasis added.] Pursuant to Administrative Appeal Guidelines for Tax Assessments Issued by the Virginia Department of Taxation § 3 A, "The 90-day limitations period begins on the calendar day after the date of assessment and continues for 90 consecutive calendar days (including weekends and holidays)." See Public Document (P.D.) 06-140

(11/29/2006).

Under these guidelines, the Taxpayer was required to file an administrative appeal within 90 days after the assessment date, or by January 17, 2007. The Taxpayer's administrative appeal is dated January 18, 2007, one day after the 90-day limitations period expired. Therefore, the Taxpayer's application for correction filed pursuant to Va. Code § 58.1-1821 is barred by statute.

The Code of Virginia section cited and other reference documents are 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 Policy and Administration, Appeals and Rulings, at ***.

Sincerely,

Janie E. Bowen

Tax Commissioner

AR/1-1169290405B