Ezel / Tax Rulings / VA
VA P.D. 14-63 Individual Income Tax 2014-05-12

Could a taxpayer challenge a 2000 Virginia assessment in 2012 by demanding that the Department first prove it was correct?

Short answer: No. The assessment was issued June 6, 2003, but the taxpayer did not appeal until November 2012, long after Virginia's 90-day deadline. Department records also showed earlier notices to the same address. The assessment was presumed correct, and the taxpayer supplied no proof of error, so it remained due.

Apply this to your situation

This page answers the general question as of 2014. Ezel answers yours, under current Virginia tax law, with citations.

Currency note: this ruling is from 2014
Subsequent statutory amendments, regulation changes, court decisions, or later rulings may have changed the analysis. Treat this page as historical context, not current tax advice. Verify current law before relying on any specific rule, rate, or position mentioned here.
Disclaimer: This is an official Virginia Tax Commissioner determination on a 2000 assessment issued in 2003 and appealed in 2012. It depended on Department mailing records and the taxpayer's failure to produce contrary proof. Different notice, mailing, or timely-filing facts can change a limitations analysis. This summary is informational only and is not legal or tax advice.
About this page: The plain-English summary, reader guidance, and Q&A below were written by Ezel based on the official state tax ruling. The original ruling (linked on this page as a PDF) is the authoritative source for any reliance.
View original ruling (PDF)

Subject

Late appeal barred and taxpayer did not rebut assessment

Plain-English summary

Virginia rejected the appeal because it was filed years after the 90-day deadline. The Department issued the 2000 assessment on June 6, 2003. The taxpayer claimed she first learned of it in 2012, but Department records showed written contacts in 2003 and 2008, with no returned mail, including a notice sent to the same address used in 2012.

The November 2012 appeal was therefore time-barred. The taxpayer also demanded that the Department prove its assessment, but Virginia assessments are presumed correct. The taxpayer had the burden to show error and supplied no proof.

What this means for you

  • File a Virginia administrative appeal within 90 days of the assessment date.
  • Keep addresses current and respond promptly to Department information requests.
  • The taxpayer bears the burden of rebutting a presumptively correct assessment.

Citations and references

  • Va. Code §§ 58.1-1821 and 58.1-205.
  • 23 VAC 10-20-165.

Source

Original ruling text

May 12, 2014

Re: § 58.1-1821 Application: Individual Income Tax

Dear *:

This will reply to your letter concerning the Virginia income tax assessment issued to * (the "Taxpayer") for the taxable year ending December 31, 2000. I apologize for the delay in responding to your request.

FACTS

The Department received information from the Internal Revenue Service that the Taxpayer may have income subject to Virginia income tax for the 2000 taxable year. The Department requested additional information. When no response was received, the Department issued an assessment. The Taxpayer appeals the assessment, contending she will accept the Department's assessment when the Department provides proof that the assessment is correct. The Taxpayer further argues that if such proof is not provided, that the Department should abate the assessment. The Taxpayer also alleges that she was not contacted regarding the debt until 2012.

DETERMINATION

Virginia Code § 58.1-1821 provides 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." [Emphasis added.] Title 23 of the Virginia Administrative Code 10-20-165 provides additional requirements regarding the timely filing of administrative appeals. This regulation provides information to taxpayers about the process for appealing tax assessments, including how to file a complete and timely administrative appeal.

The assessment for the 2000 taxable year was issued on June 6, 2003. While the Taxpayer alleges that she was not aware of the assessment until October 2012, Department records indicate a number of attempts to contact the Taxpayer in writing in 2003 and 2008. The Department has no record that any of the correspondence was returned as undeliverable by the post office. In fact, a notice dated in 2008 was mailed to the same address as the notice received by the Taxpayer in 2012.

The Taxpayer filed an appeal with the Department by letter dated November 15, 2012. This filing is well after the expiration of the 90-day limitations period. Therefore, the Taxpayer's application for correction pursuant to Va. Code § 58.1-1821 is barred by the statute of limitations.

Further, Va. Code § 58.1-205 provides that in any proceeding relating to the interpretation of the tax laws of Virginia, an "assessment of a tax by the Department shall be deemed prima facie correct." As such, the burden of proof is on the Taxpayer to show the 2000 assessment is erroneous. The Taxpayer has not provided such proof. Accordingly, the assessment for the 2000 taxable year remains due and payable.

The Code of Virginia section and regulation cited are available on-line at www.tax.virginia.gov in the Laws, Rules & Decisions section of the Department's web site. If you have any questions regarding this response, you may contact * in the Office of Tax Policy, Appeals and Rulings, at ***.

Sincerely,

Craig M. Burns

Tax Commissioner

AR/1-5260159178.D

Get today's answer for your situation

You just read a 2014 ruling on this question. Ezel checks current Virginia tax law and answers your specific situation, with citations.

Opens in Ezel Pro. Every answer cites the authority it relies on.