Did filing Virginia's Administrative Appeal Form preserve an appeal when the taxpayer never supplied complete grounds and authority?

Subject

A complete administrative appeal has not been received.

Plain-English summary

Virginia barred the appeal because the taxpayer filed only an incomplete form and never supplied the required substantive appeal. The Department had issued the assessment on September 7, 2007, and received the form on November 30.

A complete appeal had to identify the taxpayer, tax type, period, assessment and payment dates, requested remedy, each alleged error and supporting facts, and the controlling legal authority. The filed form did not satisfy that standard.

Department staff called the representative on December 11 and sent a December 14 letter explaining the requirements and providing the published guidelines. Even with additional time, no complete appeal arrived. The assessment therefore became due and payable without a merits determination.

What this means for you

• An appeal form is not necessarily a complete appeal.
• State each disputed adjustment, relevant fact, requested remedy, and supporting authority before the deadline.
• Respond immediately when the Department identifies a filing deficiency.

Common questions

Did Virginia review whether the assessment was correct? No. The appeal failed because it remained incomplete and untimely.

What information was missing? The ruling cited the required grounds, facts, remedy, and controlling legal authority, among other identification details.

Citations and references

• Va. Code § 58.1-1821.
• P.D. 06-140 § 4.2(A) (November 29, 2006).

Source

• Landing page: Virginia Laws, Rules & Decisions
• Ruling: P.D. 08-19

Original ruling text

February 29, 2008

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

Dear *:

This will reply to your correspondence of November 30, 2007, in which you file an Administrative Appeal Form to seek correction of the retail sales and use tax assessment issued to * (the "Taxpayer") for the period August 2004 through April 2006.

FACTS

The Taxpayer was audited by the Department for the aforementioned period. The Department issued an assessment to the Taxpayer on September 7, 2007. On November 30, 2007, an Administrative Appeal form was filed with the Department. On December 11, 2007, you were contacted, via telephone, by a member of my staff regarding the Administrative Appeal form filed and the requirement for a complete appeal. Additionally, you were sent a letter dated December 14, 2007 regarding the requirements for a complete appeal and a copy of Public Document (P.D.) 06-140 (11/29/06), which provides guidelines for filing an administrative appeal with the Department.

DETERMINATION

Virginia Code § 58.1-1821 provides, in pertinent part, "[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. Such application shall be in the form prescribed by the Department, and shall fully set forth the grounds upon which the taxpayer relies and all facts relevant to the taxpayer's contention . The Tax Commissioner may also require such additional information, testimony or documentary evidence as he deems necessary to a fair determination of the application." [Emphasis added.]

Pursuant to § 4.2 A of P.D. 06-140, in order to be complete, an administrative appeal shall contain the following:

1) Identification of the taxpayer (to include mailing address, federal tax identification

number or social security number);

2) Type of tax;

3) Taxable period;

4) Date of assessment (if paid, include date of payment);

5) Remedy sought;

6) A statement signed by the taxpayer or duly appointed or authorized agent or attorney setting forth each alleged error in the assessment, the grounds upon which the taxpayer relies and all facts relevant to the taxpayer's contention ; and 7) Controlling legal authority (statutes, regulations, rulings of the Tax Commissioner, court decisions, etc.) upon which the taxpayer's position is based . [Emphasis added.]

In this instance the Administrative Appeal Form filed by the Taxpayer does not constitute a complete administrative appeal as defined in Va. Code § 58.1-1821 and P.D. 06-140. The Taxpayer was given additional time fro provide a complete administrative appeal. To date, a complete administrative appeal has not been received. Accordingly, the Taxpayer's option to file an administrative appeal regarding the assessment at issue is barred by the statute of limitations.

The assessment at issue is due and payable. A revised bill, with interest accrued to date, will be mailed shortly to the Taxpayer. No additional interest will accrue provided the outstanding assessment is paid within 30 days of the date of the bill. Please remit payment to: Virginia Department of Taxation, Office of Tax Policy, Appeals and Rulings, Attn: *, Post Office Box 27203, Richmond, Virginia 23261-7203.

The Code of Virginia section and public document cited 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 * at ***.

Sincerely,

Janie E. Bowen

Tax Commissioner

AR/1-1958728787P