Did Virginia consider the merits of a Schedule C assessment appeal received after the 90-day administrative deadline?

Plain-English summary

The Tax Commissioner denied the appeal without reaching the merits because it was filed after Virginia's 90-day administrative deadline.

The Department issued the 2022-2024 assessments on October 22, 2025. The final day to file a timely appeal was January 20, 2026, but the Department did not receive the taxpayer's appeal until February 24, 2026.

Virginia strictly enforces the 90-calendar-day period for a complete appeal. Because the deadline had expired, the assessments remained due and payable, with an updated bill and accrued interest to follow.

What this means for you

An argument about the Department's authority or the correctness of Schedule C adjustments will not be considered if the administrative appeal itself is late. Calendar the deadline from the assessment date and submit a complete appeal within 90 days.

Common questions

How long did the taxpayer have to appeal? Ninety calendar days from the assessment date.

When were the assessments issued? October 22, 2025.

When was the appeal received? February 24, 2026, after the January 20 deadline.

Did the Commissioner decide whether the Schedule C disallowance was correct? No. The appeal was denied as untimely.

Citations and references

• Va. Code § 58.1-1821 — 90-day application period for relief from a Department assessment.
• 23 VAC 10-20-165 B 1 — strict enforcement of the 90-calendar-day deadline for a complete administrative appeal.

Source

• Landing page: Virginia Laws, Rules & Decisions
• Ruling: P.D. 26-55

Original ruling text

May 26, 2026

Re: § 58.1-1821 Application: Individual Income Tax

Dear *:

This will respond to your letter in which you seek correction of the individual income tax assessments issued to you (the “Taxpayer”) for the taxable years ended December 31, 2022, through 2024.

FACTS

The Taxpayer filed Virginia resident income tax returns for the 2022 through 2024 taxable years claiming deductions on federal Schedule C. Under audit, the Department requested documentation to support the deductions. When no response was received, the Department disallowed the deductions and issued assessments. The Taxpayer applied for correction, contending the Department lacks the authority to adjust amounts reported on Schedule C.

DETERMINATION

Virginia Code § 58.1-1821 states 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.” Title 23 of the Virginia Administrative Code (VAC) 10-20-165 B 1 provides that “[t]he Department strictly enforces the 90-day limitations period for filing a timely administrative appeal. A taxpayer must file a complete appeal within 90 calendar days after the date of assessment.”

The assessments were issued on October 22, 2025. Accordingly, the last day to file a timely appeal was January 20, 2026. The Taxpayer’s appeal was received by the Department on February 24, 2026, after the 90-day period for filing an appeal under Virginia Code § 58.1-1821 had expired.

Because the appeal was not timely filed, the appeal is denied. The assessments remain due and payable. An updated bill will be issued which will include accrued interest to date. The Taxpayer should remit the balance due within 30 days of the bill date to avoid the accrual of additional interest and possible collections actions.

The Code of Virginia section and regulation cited are available online at law.lis.virginia.gov. If you have any questions regarding this determination, you may contact * in the Office of Legal Affairs, Tax Adjudication and Resolution Division, at or **.

Sincerely,

Kristin L. Collins
Tax Commissioner
Commonwealth of Virginia

AR 5516.H

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