If a taxpayer filed separate federal and Virginia returns, can Virginia hold him to a later amended joint return he never signed?

Plain-English summary

The taxpayer originally filed his 2013 Virginia individual income tax return separately from his spouse. Later, the Department received an amended 2013 joint return, processed it, and issued an assessment against him. He appealed, saying he did not consent to, know of, or sign the joint return.

The Department agreed and will revise the assessment.

• Virginia filing status follows federal. Under Va. Code § 58.1-324, a taxpayer who files a separate federal return must also file a separate Virginia return.
• The federal record showed no valid joint return. The taxpayer and the IRS stipulated in the United States Tax Court that he filed a separate 2013 federal return and did not file or intend to file an amended federal return switching to joint status.
• So the joint Virginia return was invalid as to him. Because he never filed a valid joint federal return, he could not be included on a joint Virginia return. The Department will revise the assessment and issue a refund as warranted.

The determination expressly does not affect the spouse's own 2013 Virginia liability, if any.

What this means for you

Virginia can't put you on a joint return you never validly filed federally. Your Virginia filing status is tied to your federal filing status under § 58.1-324, so a joint Virginia return requires a valid joint federal return.

The federal record controls. A Tax Court stipulation or IRS determination establishing that you filed separately is powerful evidence that a later "joint" Virginia return does not bind you.

One spouse's fix doesn't decide the other's liability. Correcting the improperly filed joint return here resolved only this taxpayer's account; the spouse's own liability is separate.

Common questions

Q: Someone filed a joint return I never signed -- am I stuck with it?

A: Not if you validly filed separately for federal purposes. Virginia status follows federal (§ 58.1-324), so without a valid joint federal return you cannot be held to a joint Virginia return.

Q: What evidence carried the day?

A: A stipulation with the IRS in the United States Tax Court that the taxpayer filed a separate 2013 federal return and did not change to joint status.

Q: Does this clear my spouse too?

A: No. The determination revised only this taxpayer's assessment and expressly left the spouse's 2013 Virginia liability, if any, unaffected.

Citations and references

• Va. Code § 58.1-324 -- a taxpayer filing a separate federal return must file a separate Virginia return; Virginia filing status follows the federal filing status

Source

• Landing page: Virginia Laws, Rules & Decisions
• Ruling: P.D. 18-200

Original ruling text

December 7, 2018

Re: § 58.1-1821 Appeal: Individual Income Tax

Dear *:

This will respond to your letter in which you seek correction of the individual income tax assessment issued to * (the “Taxpayer”) for the taxable year ended December 31, 2013.

FACTS

The Taxpayer originally filed a Virginia individual income tax return separately from his spouse for the 2013 taxable year. Later, the Department received an amended 2013 joint return. The Department processed the joint return and issued an assessment. The Taxpayer appeals the assessment, contending he did not consent to, know of, or sign the joint return.

DETERMINATION

If a taxpayer who is otherwise required to file a Virginia income tax return files a federal income tax return separately from his or her spouse, the taxpayer must also file a separate Virginia return. See Virginia Code § 58.1-324. The Taxpayer and the Internal Revenue Service (IRS) have stipulated before the United States Tax Court that the Taxpayer filed a separate 2013 federal income tax return and that he did not file or intend to file an amended federal return that changed his filing status to joint.

Because the Taxpayer did not file a valid joint federal return, he was not eligible to be included on a joint Virginia return. The assessment will be revised accordingly, and a refund issued as warranted. Nothing in this determination should be construed to affect the Virginia income tax liability, if any, of the Taxpayer’s spouse for the 2013 taxable year.

The Code of Virginia sections 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 determination, you may contact * in the Office of Tax Policy, Appeals and Rulings, at ***.

Sincerely,

Craig M. Burns

Tax Commissioner

AR/1634-C