Did a notice of intent preserve a Virginia tax appeal when the taxpayer did not file a complete appeal within 90 days?

Subject

A complete appeal was not filed with the Tax Commissioner timely

Plain-English summary

Virginia dismissed the consumer-use-tax appeal as untimely because the taxpayer filed only a notice of intent, not a complete appeal. The assessment was issued February 5, 2008, making May 5 the 90-day deadline.

Va. Code § 58.1-1821 required an application in the prescribed form that fully stated the taxpayer's grounds and all relevant facts. The Department had not received that complete submission by the deadline or by the date of the ruling.

The statute of limitations therefore barred the appeal. Virginia treated the assessment as correct and resumed collection on the unpaid bill.

What this means for you

• A notice that you plan to appeal does not replace the complete Virginia administrative appeal.
• File the grounds, relevant facts, and required form within 90 days of the assessment date.
• Do not assume a placeholder letter extends the statutory deadline.
• Missing the deadline can end administrative review and restart collection.

Common questions

Q: Was the notice of intent enough to preserve the appeal?
A: No. Virginia required a complete application within the 90-day period.

Q: What had to be included?
A: The grounds for relief and all facts relevant to the taxpayer's position, in the Department's prescribed form.

Q: What happened after the deadline passed?
A: The assessment was deemed correct and collection action resumed.

Citations and references

• Va. Code § 58.1-1821.
• Administrative Appeal Guidelines, P.D. 06-140 (November 29, 2006).

Source

• Landing page: Virginia Laws, Rules & Decisions
• Ruling: P.D. 08-75

Original ruling text

June 6, 2008

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

Dear *:

This letter is in response to the notice of intent to file an administrative appeal protesting the assessment of consumer use tax issued to * (the "Taxpayer") for the period June 2004 through June 2006.

Virginia Code § 58.1-1821 states, "Any 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 consumer use tax assessment cited in your notice of intent to appeal was issued to the Taxpayer on February 5, 2008. Pursuant to Va. Code § 58.1-1821 and the Administrative Appeal Guidelines for Tax Assessments issued by the Virginia Department of Taxation, published as Public Document 06-140 (11/29/06), a complete appeal was required to be filed with the Tax Commissioner on May 5, 2008, ninety days after the date of assessment. As of the date of this letter, a complete appeal, detailing the grounds upon which the Taxpayer relies and all relevant facts, has not been received. Pursuant to Va. Code § 58.1-1821 the Taxpayer's appeal to the Tax Commissioner is barred by the statute of limitations. Accordingly, the assessment is deemed correct as issued. Collection action will resume on the unpaid bill.

The Code of Virginia section and Administrative Appeal Guidelines 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 * in the Department's Office of Tax, Appeals and Rulings, at ***.

Sincerely,

Janie E. Bowen

Tax Commissioner

AR/1-2241677059P