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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How long do I have to claim a Virginia individual income tax refund, and does relying on my accountant extend that deadline?
You have three years from the return's original due date to claim a Virginia income tax refund, and the deadline is strict. The Department denied a 2020 nonresident refund claim filed in June 2024 -- …
When a Virginia refund depends on an amended federal return, does the one-year clock run from when you filed the federal amendment or from when the IRS accepted it?
Denied -- filed too late. When a Virginia refund depends on a change to your federal return, you have one year from the 'final determination date' to file the amended Virginia return. For a change mad…
Can a Virginia taxpayer add previously unreported net Virginia modifications to a net operating loss carryforward after the loss years are closed, and does the unrelated-member exception excuse the related-party royalty add-back?
Denied. A corporate group that owns multi-tiered pass-through operating companies (LPs) paid trademark royalties to a related affiliate, added them all back on its Virginia returns, then sought a refu…
If you mail a Virginia return but the Department never receives it, does mailing count as filing for the three-year refund deadline?
Denied. The taxpayer filed a 2019 Virginia return in April 2024 claiming a refund, but Virginia's three-year refund window (Va. Code § 58.1-499 D) had already closed on May 1, 2023. The taxpayer said …
If you file a Virginia return years late, can an amended return or a delayed IRS 'final determination' still get your overpayment refunded?
Denied. A couple filed their 2018 and 2019 Virginia returns years late—the 2018 return in December 2023 and the 2019 return in April 2024—each reporting an overpayment. Virginia's three-year refund de…
If the U.S. Tax Court later proves the IRS adjustment wrong, can Virginia still refund the tax it assessed on that adjustment, or do its filing deadlines control?
Denied—right on the merits, too late on the deadlines. The IRS adjusted the taxpayers' 2018 federal return, so Virginia assessed additional tax in March 2022 and later collected it by applying part of…
Can Virginia extend or pause its three-year refund deadline for a taxpayer who couldn't file on time because of illness or disability?
Denied for the closed years. A taxpayer filed his 2018, 2019, and 2020 Virginia returns together in May 2024, seeking refunds; Virginia paid the 2020 refund but denied 2018 and 2019 as outside the thr…
Does the six-month filing extension give me three more years to amend for a refund, even if I filed my original return before the original due date?
Denied. Taxpayers timely filed their 2020 Virginia return, then filed an amended return seeking a refund, which the Department rejected as too late. They argued the amendment was within three years of…
I got a new or consolidated bill for an old tax assessment. Does that new bill restart my 90-day deadline to appeal?
No -- a later bill does not restart your appeal clock, and this taxpayer's 2024 appeal of 2014-2015 assessments was time-barred. Virginia assessed her 2010 and 2011 income tax in March 2014 and March …
My sales and use tax audit didn't credit use tax I already paid, and it covers months after I closed my business. Can I get the credit and have the closed months removed?
Partial relief -- the case is sent back to the auditor. A consuming contractor was assessed sales and use tax on untaxed purchases and raised two points. First, it wanted credit for use tax it had acc…
How long do I have to ask Virginia to reconsider a final determination, and can I get reconsideration by re-arguing the same points?
Too late -- the assessment stands. A Virginia dealer asked the Department to reconsider a determination that had upheld its sales and use tax assessment (the dealer hadn't provided enough records to e…
The Department issued a bigger second assessment after my audit waiver expired, and it won't drop a sampled sale where the customer paid the tax. Are either of those right?
Mixed -- the taxpayer won a refund on the late second assessment but lost the sampling argument. An engineering firm was audited (Oct 2018-Sept 2021) after the auditor found its sales were sourced to …
My locality treated a phone call as my BPOL tax appeal — is that a valid local appeal, and can the state Tax Commissioner still hear my case?
A phone call is NOT a valid local appeal, so the Department still had no jurisdiction to decide the case on the merits — but, on reconsideration, it gave the taxpayer a fresh two-month window to file …
I paid Virginia sales tax by mistake on exempt purchases and later got a use tax audit bill. Can I credit that overpaid tax against the audit, and what if the vendor is gone?
No — the audit assessment was upheld and both the credit and the refund were denied. A technology-services company was audited and assessed use tax on untaxed purchases; during the audit it asked for …
If a marketplace facilitator already collected Virginia sales tax on my sales, can I still get a refund of tax I also remitted — even if I file the claim on the last day of the three-year deadline without the amended return?
No — the refund was denied on a strict deadline technicality, even though the seller appeared to have paid twice. An out-of-state dealer sold tools to Virginia customers through a marketplace facilita…
I filed an old Virginia return late and asked for the overpayment to be credited forward instead of refunded — does the three-year refund deadline still block it?
Yes — the credit was denied and the resulting assessments were upheld. A taxpayer (now deceased) filed his 2016 Virginia return on August 13, 2020, asking that the overpayment be CREDITED as an estima…
Virginia is still collecting income tax assessments from the late 1990s and 2000s — doesn't the seven-year collection statute of limitations make them uncollectible?
No — the assessments remain collectible. A nonfiler was assessed Virginia income tax for twelve years spanning 1998 through 2011 and argued the SEVEN-YEAR collection statute of limitations had run. Bu…
We didn't know our farm's venue rentals were taxable, so we never filed returns — can the auditor really go back six years instead of three, and do we owe the 20% amnesty penalty?
The six-year reach-back stands — innocent ignorance doesn't shrink it — but the 20% amnesty penalty stays off as long as the payment plan stays current. A farm that rents out its venue was audited for…
We refused to sign the auditor's waiver, but the audit still grew from three years to six — and can't our purchases share our sister company's manufacturing exemption since we jointly bought the equipment?
A split result with a clean rule: a nonfiler's audit can reach BACK six years without the taxpayer's consent — but it cannot be stretched FORWARD past the set period without a mutual agreement, and re…
The county says my Machinery and Tools tax appeal was filed too late, but the delay was caused by the Department's own year-long filing mistake — what happens now?
The Department fixed the fairness problem itself: it restarted the one-year local-appeal clock from the date of its OWN corrective ruling, so the taxpayer's appeal counted as timely after all. A taxpa…
I run a flower shop that sells arrangements in glass and metal vases — do I owe Virginia's litter tax just because those containers are on the taxable products list?
No — selling containers that happen to be on the litter tax's product list isn't enough if those items are merely INCIDENTAL to your real business, and here the Department also allowed a partial refun…
My husband's serious medical condition delayed us filing our tax returns by years — can Virginia still deny our refund because of the statute of limitations?
Yes — Virginia's three-year refund deadline has no built-in exception for medical hardship, however sympathetic the circumstances. A husband and wife filed their 2015 Virginia return in November 2019 …
My e-filed corporate return was rejected and refiled a day late because I forgot a schedule -- does that shorten my three years to file an amended return, and do I have to add back interest on a loan I used to buy stock?
The corporation won on both issues. First, its 2013 return had been electronically filed on the extended due date but was automatically rejected by Virginia's e-filing system for missing a required sc…
I paid use tax on my company plane when we moved to Virginia, then years later got charged a separate aircraft tax to license it -- can I get the earlier payment refunded as a double payment?
No — even though the Department, on reconsideration, agreed its earlier ruling had wrongly found the refund request untimely, the taxpayer still couldn't prove it was entitled to a refund on the merit…
I filed an appeal of old Virginia income tax assessments years late, claiming the 1099s the Department relied on were the result of fraud by the company that issued them -- can the Department still fix my assessments?
No relief on any front -- the appeal was years too late, no valid protective claim existed, and even on the merits the taxpayer had no proof. A Virginia resident was assessed individual income tax for…
I have old Virginia income tax assessments from 2010 and 2011 that I never appealed because I didn't live in Virginia at the time -- can I appeal them now, over a decade later?
No -- far too late. A taxpayer had outstanding Virginia income tax assessments for failing to file returns for the 2007, 2008, and 2017 taxable years; after Department liens collected part of the mone…
The Department is still trying to collect Virginia income tax assessments from 2009-2013 -- doesn't the current 7-year collection statute of limitations mean these are too old to collect anymore?
No -- the current 7-year collection deadline only applies to assessments made on or after July 1, 2016, and these were older. A taxpayer's Virginia income tax assessments for 2009 through 2013 (issued…
My late father never filed Virginia income tax returns for several years going back to the 1990s, and the Department abated one assessment and then issued a brand-new one for the same year -- can his estate get all these old assessments declared uncollectable, and was that replacement assessment even valid?
Both stand -- the old assessments remain collectible, and the replacement 2007 assessment was valid. An estate sought a ruling that Virginia income tax assessments issued to a now-deceased taxpayer fo…
The Department's own auditor told me over the phone to go ahead and file an appeal of my old assessments -- does that give me a fresh 90-day window to appeal, even years after the original assessments?
No -- an auditor's informal instruction to file an appeal doesn't create a new appeal right; only an actual assessment or new final determination does that. A taxpayer had Virginia income tax assessme…
The Department denied my sales/use tax refund claim as untimely because of when the package reached a regional postal facility, and separately said my power of attorney form wasn't properly signed -- do either of those actually defeat my refund claim?
Neither defeats the claim -- the taxpayer's own mailing receipt proved timely filing, and a power of attorney defect is irrelevant to whether a refund claim itself was validly filed. A taxpayer's repr…
I filed an amended Virginia sales tax return claiming a refund a little while after the original filing deadline -- can the Department still deny it purely for being late?
Yes -- Virginia's three-year deadline to claim a sales tax refund runs from the original return's due date, and it is enforced strictly with no grace period. A company that provides computer and data …
Can I get a Virginia tax determination reconsidered if I missed the 45-day deadline, or if I claim I never received the original assessment notice?
No, in this case. A request to reconsider a Tax Commissioner's final determination must be filed within 45 days, and a late request is barred regardless of the underlying merits. Separately, Virginia …
Can I use a Virginia assessment appeal to fix my own reporting mistakes on my original return, even if I agree the audit itself was correct?
No. A Virginia Code § 58.1-1821 administrative appeal must identify actual errors the Department made in the assessment itself -- it can't be used as a backdoor way to fix mistakes you made on your ow…
Can Virginia's three-year deadline to claim a sales tax refund be extended if I missed a follow-up document request?
No. Virginia's three-year statute of limitations for a sales and use tax refund claim is a hard deadline the Department has no authority to extend, and neither an incomplete refund claim nor equitable…
How long do I have to claim a refund of Virginia income tax I actually paid on a return I filed?
Three years from the original due date of the return, with no extensions available -- a taxpayer who paid his 2017 Virginia tax on time but didn't ask for a refund of that year's overpayment until Sep…
How long does Virginia have to recover a refund it paid out by its own mistake, and do I owe interest on the money back?
Two years from the date the erroneous refund was issued -- when the Department's own processing error increased a couple's mortgage-interest deduction and paid them a bigger refund than they'd actuall…
Did Virginia's 2020 COVID-19 payment-deadline extension also extend the 3-year deadline to claim a refund for an old tax year?
No -- Virginia's COVID-19 payment extension (moving the 2020 payment deadline to June 1, 2020) applied only to PAYMENTS, not to the deadline for filing a return to claim a refund, so a taxpayer who fi…
If I don't file an amended Virginia return after the IRS adjusts my federal income, how long does Virginia have to assess me for the difference?
There is no time limit -- Virginia's normal 3-year assessment deadline (Va. Code § 58.1-104) has a built-in exception: if a taxpayer fails to file the amended Virginia return required within one year …
Can I avoid Virginia income tax by arguing I'm not a U.S. citizen, had no contract to pay tax, or that the IRS has no authority in Virginia?
No -- Virginia residency and income tax liability don't depend on U.S. citizenship, a personal contractual agreement to pay tax, or the IRS's authority to operate in the state; the Department rejected…
Does filing a "notice of intent to appeal" a Virginia tax assessment pause or extend the 90-day appeal deadline?
No -- Virginia strictly enforces a 90-day deadline (from the assessment date) to file a COMPLETE appeal, and filing a mere "notice of intent to appeal" within that window does not pause or extend the …
Does Virginia's current 7-year statute of limitations on tax collections apply to old assessments from the 1990s, and does a 2021 bank lien on a decades-old debt mean the Department missed its deadline?
No -- Virginia's current 7-year collection statute of limitations only applies to assessments made on or after July 1, 2016; assessments from 1994-1996 (for the 1987-1993 tax years here) were instead …
If I discover years later that I was entitled to a Virginia tax subtraction I never claimed, can I still get a refund by filing an amended return?
Only if you file within three years of the original return's due date -- a married couple who didn't realize until 2020 that they could subtract taxable Social Security income from their Virginia retu…
The IRS told Virginia I owed tax for years I never filed a Virginia return, and I didn't appeal within 90 days -- can I still dispute the assessed amount?
No -- once you miss Virginia's strict 90-day deadline to appeal a tax assessment, the Department can no longer consider your appeal, no matter how wrong you believe the assessed amount is. A Virginia …
I submitted an offer in compromise instead of a formal appeal after my sales tax audit assessment -- when the offer was rejected years later, can I still appeal the original assessment?
No -- submitting an offer in compromise instead of a formal administrative appeal doesn't stop or extend Virginia's 90-day deadline to appeal the underlying assessment, and the clock isn't restarted b…
I filed a refund claim with my county for prior years' business tangible personal property tax, and the county denied part of it as filed too late under the appeal deadline -- but I thought refund claims had a longer filing window?
A locality can't treat your refund claim as if it were a formal "appeal" and then deny part of it under the shorter one-year appeal deadline -- refund claims have their own three-year statute of limit…
I got a 'Detail Bill Information' notice a month after my original assessment -- does that give me a fresh 90 days to appeal?
No -- only the Department's official "Notice of Assessment" starts the 90-day appeal clock; a later document like a "Detail Bill Information" notice, which just restates a balance already due, does no…
Another state audited and corrected my tax return years after I originally filed -- can I still amend my Virginia return to claim a bigger credit for the extra tax I ended up owing that state?
Yes -- Virginia gives you a special one-year window, running from the final determination of a change or correction to your income tax in another state, to amend your Virginia return and claim any res…
I submitted an intent to appeal along with an offer in compromise, but the Department said my appeal was incomplete and closed my case -- can I still file a complete appeal after my offer in compromise is later rejected?
No -- Virginia's 90-day appeal deadline runs from the date of assessment, and pursuing an offer in compromise instead of, or alongside, a complete appeal does not extend or restart that clock. A taxpa…
The Department denied my 2017 deduction for carryover contributions to my kids' Virginia 529 prepaid tuition accounts, saying I'd already used up all my carryovers in earlier years -- but I think my math is right. Can the Department go back and recheck years that are now outside the statute of limitations?
The Department can't reach back into years that are now outside the three-year statute of limitations to permanently fix your prior over-claimed deductions -- so it has to calculate what your CURRENT …
My landscaping business was audited for six years instead of the usual three because I'd never registered for use tax, and the auditor won't remove items I say I already paid tax on, or leased equipment, or downloaded software -- can I fight any of this without documentation?
No -- without documentation, none of these claims (tax already paid, exempt equipment leases, exempt electronically-delivered software) can remove items from your audit, and if you were never register…
The IRS adjusted my 2013 return back in 2016, but I never reported it to Virginia because I believe (and am still contesting with the IRS) that their adjustment itself was made after their own deadline had passed -- can Virginia still assess me years later?
Yes -- once a taxpayer fails to file an amended Virginia return reporting a federal change, Virginia can assess the resulting tax at any time, with no statute-of-limitations shield, and the Department…
My sales tax appeal was postmarked just 9 days after the 90-day deadline -- can the Department still consider it?
No -- Virginia strictly enforces its 90-day appeal deadline with no exception for a short delay, and this appeal was barred even though it missed the deadline by only 9 days. The taxpayer's sales and …
My corporation's unpaid withholding tax assessment was converted to me personally as a responsible officer years after the company stopped operating -- was that too late under the statute of limitations?
No -- it was timely, because the specific three-year deadline for OMITTED taxes runs from when the return was actually filed (which was late here), not from the general filing due date the taxpayer as…
My company took title to equipment outside Virginia through an affiliate transfer, and calls it a corporate reorganization or a gift -- can Virginia still assess use tax once the equipment gets used here?
Yes. A marine cargo terminal operator owed Virginia use tax on ship-to-shore cranes because it took actual possession and began using them at the Virginia port once the cranes were erected, tested, an…
If the IRS adjusts my income or audits a partnership I'm invested in, how and when do I have to report that change to Virginia?
Generally, you (or, for a partnership-level federal audit, the partnership itself) must report a federal tax adjustment to Virginia within one year of its 'final determination date.' These Department …
The IRS adjusted our itemized deductions years ago, and Virginia only just assessed us for it -- shouldn't there be a time limit on how long Virginia can wait before catching a mismatch like this?
No -- there's no statute of limitations at all for the Department to assess additional tax when a taxpayer's federal income was adjusted and no amended Virginia return was ever filed to report it, reg…
The Department audited us for SIX years and reclassified our 1099 subcontractors as employees just because we couldn't produce invoices and business licenses -- is that enough proof, and can they really go back that far?
Partially in the taxpayer's favor on both fronts -- a worker's status as an independent contractor can't be decided just because the business couldn't produce specific paperwork like invoices or busin…
The IRS adjusted my old federal return years ago and I never amended my Virginia return -- can Virginia still assess me now, and can I settle the bill for less?
Yes, Virginia can assess tax with no time limit at all if a taxpayer never files the Virginia amended return required after an IRS adjustment, and no, an offer to settle for less doesn't work when the…
Can a taxpayer get a Virginia income tax refund by amending her return more than three years later, based on a correction made to her other state's return?
No -- the refund was denied as time-barred, because the one-year exception for changes made by another state only applies when that change actually decreases Virginia tax, and here the State A rate co…
Can a Virginia taxpayer get an income tax refund after the statute of limitations has run because their tax preparer made a filing error?
No -- the refund was denied as time-barred because the return was not filed until October 2019, more than three years after the May 2, 2016 deadline, and the Taxpayers could not prove their preparer h…
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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.