Virginia State Tax Rulings
Free plain-English summaries of state tax letter rulings and advisory opinions issued in Virginia, with full citations and the original source on every page.
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Could a taxpayer challenge Virginia's 2008 and 2012 income-tax assessments after the 90-day administrative appeal periods expired?
No. The 2008 and 2012 assessments were issued in April 2011 and August 2013, making the appeal deadlines July 2011 and November 2013. The taxpayer did not appeal until February 2015, so Virginia could…
Could a taxpayer overturn Virginia's 2012 nonfiler assessment without evidence that he was not a Virginia resident?
No. Virginia could use IRS information and estimate the liability when no return was filed. Because the taxpayer produced no objective evidence that he was not a Virginia resident required to file for…
Was a husband a Virginia domiciliary resident in 2011 when the couple claimed he remained domiciled elsewhere?
Yes. The evidence tied the husband to the couple's Virginia home, while the couple provided no proof that he maintained or acquired domicile elsewhere. He had to file as a Virginia resident for 2011.
Could a taxpayer overturn a Virginia residency assessment without providing the domicile records the Department requested?
Not on the existing record. The assessment was presumed correct, and the taxpayer had not supplied the requested domicile evidence. Virginia allowed one final 45-day opportunity to provide documentati…
Did a lease and claimed out-of-state driver's license prove that a taxpayer had abandoned Virginia domicile for 2014?
No. The taxpayer showed some ties to another state, but Virginia records still showed a vehicle and driver's license here, and his federal return used a Virginia address. Because he bore the burden of…
Could a taxpayer avoid Virginia income-tax assessments by arguing that federal and state income-tax payment is voluntary?
No. Voluntary compliance does not make payment optional or prevent Virginia from assessing unpaid tax. The taxpayer also failed to document possible Maryland residency and reciprocity eligibility, so …
Could a nonfiler overturn a Virginia income-tax assessment merely by saying he lived in another state and then attended out-of-state graduate school?
No. The taxpayer did not answer Virginia's documentation request or prove that he had abandoned Virginia domicile and acquired another one. Because the assessment was presumed correct, Virginia upheld…
Did saying that a married couple paid income tax in Virginia and another state prove that they had changed domicile for 2012?
No. The couple did not provide objective evidence that they abandoned Virginia domicile and acquired another one, and paying tax in two states did not establish the change. Virginia kept the best-info…
Did claiming an out-of-state residence from 2011 through 2015 overturn a Virginia best-information assessment for 2012 without supporting records?
No. Although the taxpayer said he lived elsewhere from July 2011 until February 2015, he ignored Virginia's documentation request and supplied no substantial evidence about his domicile. The 2012 asse…
Did saying she moved out of Virginia in March 2013 prove that a nonfiler was not subject to Virginia income tax for 2012?
No. The claimed March 2013 move did not document the taxpayer's 2012 status, and she did not answer Virginia's records request. The assessment remained presumed correct, but Virginia allowed one final…
Could a nonfiler overturn a 2012 Virginia assessment merely by claiming residence in another state without supplying the requested records?
No. A bare claim of residence elsewhere did not prove abandonment of Virginia domicile, and the taxpayer ignored Virginia's documentation request. The best-information assessment remained presumed cor…
Could a military spouse avoid Virginia income tax for 2009 and 2010 by claiming the servicemember's out-of-state domicile?
No. The Department found that the spouse had established Virginia domicile after moving there in 2008. The Servicemembers Civil Relief Act did not let her simply elect her spouse's domicile, and the r…
Did buying an out-of-state home and changing a driver's license and voter registration prove that a taxpayer abandoned Virginia domicile?
No. Although the taxpayer bought a home and changed a license, vehicle registration, and voter registration in another state, he retained a jointly owned Virginia home where he stayed, operated his bu…
Did a taxpayer prove he was not a Virginia resident in 2011 after ignoring requests for domicile records?
Not yet. The taxpayer said he had lived outside Virginia since 2004, but Virginia records showed later resident returns, an active Virginia driver's license, and financial documents sent to a Virginia…
Could a nonfiler overturn a 2012 Virginia assessment by claiming domicile in another state but providing no objective evidence?
No. The taxpayer ignored two residency-document requests and provided no objective evidence that he had abandoned Virginia domicile and acquired another one. The best-information assessment remained p…
Could a Virginia resident exclude short-term National Guard pay as extended active-duty pay or under the Servicemembers Civil Relief Act?
No. The taxpayer was a Virginia resident, did not show qualifying active military status under the Servicemembers Civil Relief Act, and did not prove extended active duty exceeding 90 days. The Nation…
Did paying income tax to a former state excuse a full-year Virginia resident from filing a 2012 Virginia return?
No. The taxpayer lived and worked in Virginia throughout 2012, so another state's withholding and return did not remove the Virginia filing duty. He was responsible for updating his employer's withhol…
Did a West Virginia resident owe Virginia income tax on wages earned while working in Virginia in 2011?
No. Virginia found that the taxpayer had established West Virginia domicile for 2011 despite renewing a Virginia driver's license. Because he was a West Virginia resident earning wages in Virginia, th…
Was a taxpayer who moved out for permanent work and returned to Virginia in May 2011 a full-year or part-year resident?
Part-year resident. Virginia found that the taxpayer had abandoned Virginia domicile before 2011 and did not become a Virginia resident again until he returned in May. His submitted part-year return w…
Did returning to Virginia for about two weeks within six months of moving away prevent a taxpayer from proving a domicile change?
No. Although returning to Virginia within six months was prima facie evidence that the taxpayer had not abandoned Virginia domicile, the full record showed a genuine move from State B to State A. Virg…
Did a military spouse prove that she retained another state's domicile and qualified for relief from Virginia income tax for 2011?
No. The taxpayer did not prove that she retained the same out-of-state domicile as her military spouse. Living and working in Virginia, registering her vehicle there, and obtaining a Virginia driver's…
Did a retiree who kept homes in two states become domiciled in Virginia after renewing a Virginia driver's license and maintaining vehicles there?
Yes. After weighing all evidence, Virginia found the taxpayer changed domicile to Virginia in 2007. Renewing a Virginia driver's license, relinquishing the other state's license, allowing most registr…
Was a husband who owned a Virginia home, license, vehicles, and voter registration still a nonresident when his permanent ties remained elsewhere?
Yes, he remained a nonresident for 2009. Although he owned a Virginia home and held a Virginia driver's license, voter registration, and vehicles, he spent fewer than 183 days in Virginia and had not …
Did a merchant mariner abandon Virginia domicile by taking an indefinite out-of-state job and using motels or a training center between voyages?
No. Although the mariner had indefinite employment and a post-office box in another state, he never established a permanent abode there and retained major Virginia ties: his wife, voter registration, …
Did leasing homes outside Virginia establish a new domicile when the taxpayer retained Virginia property, licensing, and registration ties?
No. Even if the taxpayer began abandoning Virginia in 2009, she did not establish a new permanent or indefinite domicile in either state where she temporarily leased housing during 2010. She retained …
Did a servicemember who lived in Virginia owe Virginia income tax for 2009 and 2011?
Not under the assessments as issued. Virginia treated the servicemember as a nonresident in 2009, so her military pay was protected and her nonmilitary work performed outside Virginia was not Virginia…
Did a military spouse and servicemember remain domiciled outside Virginia for 2010 income-tax purposes?
No. The spouse established Virginia domicile after moving in 2007: she worked full time, obtained a Virginia license and vehicle registration, voted in Virginia, and bought a home with the servicememb…
Could an individual challenge Virginia's 2008-2009 estimated income-tax assessments after the 90-day appeal deadlines?
No. The taxpayer appealed the 2008 assessment more than a year after its April 4, 2012 deadline and appealed the 2009 assessment after its November 27, 2012 deadline, so both applications were barred.…
Could a taxpayer undo her 2009 Virginia resident return without clearly documenting where she lived and established domicile?
Not on the evidence submitted. The taxpayer had some ties to another state but retained a Virginia driver's license until October 2009, filed a full-year Virginia resident return, and had Virginia tax…
Did an other-state return and surrender of a Virginia license prove that a taxpayer changed domicile before 2009?
Not by themselves. The taxpayer filed a 2009 return in another state and had surrendered her Virginia driver's license in August 2008, but she did not provide the additional records Virginia requested…
Did the taxpayer prove that she had abandoned Virginia domicile during 2008?
Yes. Virginia abated the 2008 assessment because the taxpayer's employment, resident income-tax filing, voter registration, and other evidence showed that she established domicile in another state and…
Could a part-year Virginia couple claim credit for tax on wages excluded from Virginia income?
No. The wife earned and was taxed on the wages while she was a resident of the other state, so Virginia's part-year rule barred the credit for that period. The couple also excluded those wages from Vi…
Could a 2005 Virginia assessment be overturned by arguing that IRS information was obtained unlawfully, without evidence of nonresidency?
No. Virginia held that IRC § 6103(d) authorized the Department to obtain IRS information for a resident nonfiler and that state law allowed an estimated assessment. Because the taxpayer offered no obj…
Could taxpayers defeat a Virginia resident assessment by demanding proof after ignoring requests prompted by a federal return using a Virginia address?
No. Virginia lawfully used federal information showing a Virginia address, requested records to determine liability, and assessed from the information available when the taxpayers did not respond. Bec…
Did a military spouse qualify for Virginia income tax protection when she obtained a Virginia driver's license and established domicile in Virginia?
No. The military-spouse protection required the spouse and service member to share the same out-of-state domicile. Virginia found that the spouse acquired Virginia domicile in 2007 after establishing …
Did an out-of-state part-year return change Virginia's finding that a taxpayer became domiciled in Virginia in May 2007?
No. The other state's part-year return confirmed that the taxpayer left that state in April 2007 but did not show where she established domicile afterward. Virginia retained its finding that she becam…
Was a person domiciled in another state still a Virginia resident after living and working in Virginia for 190 days?
Yes. Although the taxpayer remained domiciled in another state, he lived and worked in Virginia for 190 days in 2007. Because he maintained a Virginia abode for more than 183 days, he was an actual Vi…
Did attending college, voting, paying in-state tuition, and interning in another state end a student's Virginia domicile?
No. Virginia found that the student had not clearly abandoned his Virginia domicile. His out-of-state tuition status, voting, internship, and part-year return supported a change, but college housing a…
Did temporary job transfers outside Virginia establish that a taxpayer abandoned his Virginia domicile for 2007?
No. Virginia held that temporary job assignments outside the state, even for years, did not prove the taxpayer intended to establish a permanent home elsewhere. His Virginia driver's license, Virginia…
Were spouses full-year Virginia residents for 2006 even though one did not obtain Virginia employment until October?
Yes. Virginia found that the couple's licenses, Virginia apartments, vehicle registration, and earlier part-year filing showed Virginia domicile throughout 2006. A later Virginia job start and one par…
Did the military-spouse income-tax exemption apply when the spouse moved to Virginia before marriage and had a different domicile from the service member?
No. Virginia found that the spouse established Virginia domicile when she moved there in June 2007, before marrying the service member in January 2009. The service member retained State A domicile. Be…
Did a one-year job, rented housing, and bar admission in another state establish that an individual had abandoned his Virginia domicile for 2006?
No. The taxpayer's one-year employment, temporary living arrangements, retained Virginia driver's license and vehicle registration, use of a Virginia address on tax returns, and return to Virginia sho…
Was an individual still domiciled in Virginia for 2007 when he had moved to another state and only a Virginia address on federal information statements linked him to Virginia?
No. The taxpayer had moved back to State A before 2007, established a permanent home and driver's license there, kept his business interests there, and spent most of the year there. Because the only 2…
Did spending more than 183 days in another state, claiming its homestead exemption, and registering to vote there end a couple's Virginia domicile?
No. Although the couple spent most of each year in State A, claimed its homestead exemption, registered to vote there, and obtained State A identification cards, they kept Virginia driver's licenses, …
Did a military spouse who moved to Virginia solely to accompany an active-duty spouse remain domiciled in their shared prior state for 2009?
Yes. Virginia found that the service member had established domicile in State A through legal-residence certificates, a driver's license, and the absence of meaningful continuing ties to the home-of-r…
Were spouses who moved out of Virginia in February 2007 full-year residents, and how did they report income before and after the move?
No. The couple proved they spent fewer than 183 days in Virginia and established a new domicile when they bought and moved into an out-of-state condominium in February 2007, followed by other abandonm…
Did a professional athlete abandon Virginia domicile by obtaining another state's license and voter registration while training and playing elsewhere?
No. Virginia found that the couple remained domiciliary residents for 2004-2006. The husband's other-state driver's license, voter registration, training, and four-month lease did not outweigh the Vir…
Did a taxpayer establish a new domicile outside Virginia despite retaining a Virginia home, license, vehicles, and voter registration?
Yes. Although the taxpayer retained several Virginia ties, he lived and worked in the other state with his wife, used that address for federal tax and financial records, claimed it for withholding, jo…
Did a taxpayer establish domicile outside Virginia even though his wife, home, vehicle, doctor, and more of his days remained tied to Virginia?
Yes. Virginia found that the taxpayer became domiciled in the other state in 2005 after his parents died and he returned there. He bought another home, maintained and renewed that state's license, vot…
Did foreign and out-of-state work assignments end a taxpayer's Virginia domicile when his family, home, licenses, and registrations stayed in Virginia?
No. Employment and housing abroad and in another state did not prove abandonment of Virginia domicile. The taxpayer's spouse and children stayed in the Virginia home; he retained Virginia vehicles, a …
Did a taxpayer's statement that he lived and worked outside Virginia in 2003 justify removing the state's income-tax assessment?
Not yet. The taxpayer said he lived and worked outside Virginia in 2003, but he retained a Virginia driver's license, voter registration, vehicle registration, and a Virginia address receiving federal…
Did a couple establish domicile outside Virginia despite keeping a historic Virginia home, mail address, and old driver's licenses?
Yes. The couple kept a historic Virginia home, received mail there, visited regularly, and had renewed Virginia licenses in 2003. But the husband began working in the other state in 2002, they bought …
Did a taxpayer prove she lived outside Virginia in 2004 after ignoring three Department requests for residency evidence?
Not yet. Virginia had third-party tax documents sent to a Virginia address and a Virginia license later renewed in 2007. The taxpayer claimed another-state domicile but did not provide all evidence re…
Did a couple abandon Virginia domicile after moving, buying a home, and operating a business in another state while retaining Virginia ties?
Yes. The couple established a permanent home and demanding business in another state and proved an intent to remain there indefinitely. Keeping an unsold Virginia house, an old Virginia registration, …
Did a traveling artist abandon Virginia domicile by owning homes and studios elsewhere while retaining a Virginia home, license, and voter registration?
No. Despite homes, studios, vehicles, and business ties in other states, the artist kept a preexisting Virginia residence, renewed a Virginia driver's license in 2003, remained registered to vote, con…
Did buying a home and opening a business office in another state end the taxpayer's Virginia domicile for 2005 and 2006?
No. Although the taxpayer established significant ties to another state, Virginia found that she did not abandon her Virginia domicile during 2005 or 2006 because she retained a home, driver's license…
Was the taxpayer a Virginia domiciliary resident for the 2005 tax year?
No. After weighing all the evidence, Virginia found that the taxpayer had abandoned Virginia domicile and established domicile in another state before 2005, so the 2005 individual income-tax assessmen…
Did checks paid to another state's revenue department prove that a taxpayer was not a Virginia resident?
No. Checks sent to another state's revenue department could reflect nonresident tax and did not establish domicile. Virginia asked for evidence bearing on residence, employment, spouse, property, vehi…
Did a merchant mariner who separated from his spouse and established ties to a U.S. territory remain a Virginia domiciliary resident?
No. Considering all the circumstances, Virginia found that the merchant mariner abandoned his Virginia domicile and established a domicile outside Virginia. His assessments for 2003 and 2004 were abat…
Could a taxpayer challenge 2001 and 2002 Virginia residency assessments by filing an administrative appeal in April 2006?
No. Va. Code § 58.1-1821 required an appeal within 90 days of each assessment. The April 2006 filing came after the April 2004 and April 2005 deadlines, so the Tax Commissioner dismissed it as time-ba…
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These are official tax letter rulings and advisory opinions issued by Virginia's revenue authority in response to questions from specific taxpayers about how the tax law applies to their facts. A ruling is binding on the department only for the taxpayer who requested it and cannot be relied on by anyone else, but it is strong evidence of how the state reads the law. Every ruling above has a plain-English question and short answer, plus a link to the full original source.