Virginia State Income Tax Protest

VIRGINIA STATE INCOME TAX PROTEST — ADMINISTRATIVE APPEAL TO THE TAX COMMISSIONER

TABLE OF CONTENTS

1. Caption and Cover Letter
2. Identification of Taxpayer and Assessment
3. Statement of Timeliness
4. Issues Presented
5. Statement of Facts
6. Argument and Authorities
7. Calculation of Disputed Amount
8. Request for Relief
9. Hearing Election and Stay of Collection
10. Reservation of Rights and Further Appeal
11. Verification
12. Signature Block and Power of Attorney
13. Certificate of Service
14. Virginia Practice Notes
15. Sources and References

1. CAPTION AND COVER LETTER

[DATE]

VIA CERTIFIED MAIL — RETURN RECEIPT REQUESTED
AND ELECTRONIC SUBMISSION (where available)

Tax Commissioner
Virginia Department of Taxation
Office of Tax Policy / Appeals & Rulings
P.O. Box 27203
Richmond, Virginia 23218-7203

Re: Administrative Appeal Pursuant to Va. Code § 58.1-1821

Taxpayer: [TAXPAYER FULL LEGAL NAME]

SSN/FEIN: [XXX-XX-XXXX / XX-XXXXXXX]

Tax Type: Virginia Individual / Corporate / Pass-Through Income Tax

Tax Period(s): [YEAR(S)]

Bill / Assessment No.: [ASSESSMENT NUMBER]

Date of Assessment: [DATE OF ASSESSMENT]

Disputed Amount: $[AMOUNT]

Dear Tax Commissioner:

Pursuant to Va. Code § 58.1-1821 and 23 VAC 10-20-165, the above-named Taxpayer ("Taxpayer") respectfully files this Administrative Appeal of the referenced Assessment and requests that the Tax Commissioner correct the Assessment, abate the disputed tax, penalties, and interest, and confirm that all collection activity is suspended pending final determination.

2. IDENTIFICATION OF TAXPAYER AND ASSESSMENT

2.1. Taxpayer. [TAXPAYER NAME], a [INDIVIDUAL / CORPORATION / PARTNERSHIP / S-CORPORATION / LLC] organized under the laws of [STATE], with principal residence/place of business at [ADDRESS], and Virginia tax identifier [ID].

2.2. Authorized Representative. [ATTORNEY / CPA NAME], [FIRM], [ADDRESS], [PHONE], [EMAIL], Virginia Bar / CPA No. [####]. A completed Virginia Form PAR 101 (Power of Attorney and Declaration of Representative) is attached as Exhibit A.

2.3. Assessment. On [DATE OF ASSESSMENT], the Department of Taxation issued a Notice of Assessment, Bill No. [NUMBER], asserting Virginia income tax liability for taxable year(s) [YEAR(S)] in the following amounts:

2.4. Disputed Amount. Taxpayer disputes $[AMOUNT] of the Assessment. Taxpayer [does / does not] concede the remaining $[AMOUNT].

3. STATEMENT OF TIMELINESS

3.1. The Assessment is dated [DATE]. Pursuant to Va. Code § 58.1-1821, an administrative appeal must be filed within ninety (90) calendar days of the date of assessment.

3.2. This Appeal is filed on [FILING DATE], which is the [Nth] day after the date of assessment and is therefore timely.

3.3. This Appeal is complete on its face and includes (i) a statement of the contested issues of law and fact, (ii) Taxpayer's reconciliation of the proper liability, (iii) supporting documentation listed in Section 14 hereof, and (iv) a Power of Attorney where applicable, satisfying the completeness requirements of 23 VAC 10-20-165.

4. ISSUES PRESENTED

4.1. Whether the Department erred in [ISSUE 1 — e.g., disallowing the Virginia subtraction for [item] under Va. Code § 58.1-322.02].

4.2. Whether the Department erred in [ISSUE 2 — e.g., denying the Land Preservation Tax Credit, Low-Income Housing Credit, or other Virginia credit].

4.3. Whether the Department erred in [ISSUE 3 — e.g., asserting Virginia residency / domicile under Va. Code § 58.1-302].

4.4. Whether the Department erred in [ISSUE 4 — e.g., applying the apportionment factors of Va. Code § 58.1-408 et seq.].

4.5. Whether penalties asserted under Va. Code § 58.1-[SECTION] should be abated for reasonable cause and good faith.

5. STATEMENT OF FACTS

5.1. Taxpayer timely filed Virginia Form [760 / 763 / 760PY / 500 / 502] for tax year [YEAR] on [DATE], reporting Virginia taxable income of $[AMOUNT] and tax of $[AMOUNT].

5.2. [Describe the underlying transaction, residency facts, business operations, or credit claim that produced the tax position. Include dates, dollar amounts, and citations to supporting exhibits.]

5.3. On [DATE], the Department issued a Notice of Proposed Adjustment / Notice of Audit / Notice of Assessment.

5.4. [Describe the audit history, IDR responses, conferences, and any prior agreements or stipulations.]

5.5. Taxpayer has cooperated fully with the Department throughout the examination and provided all books, records, and supporting documentation requested.

6. ARGUMENT AND AUTHORITIES

6.1. The Disputed Adjustment Is Contrary to Virginia Law.

Virginia conforms to federal taxable income subject to specific Virginia modifications. Va. Code § 58.1-322 (individual) / § 58.1-402 (corporate). The Department's adjustment [describe how the adjustment misapplies the conformity rules / a specific subtraction / a specific credit]. See, e.g., [CASE OR PUBLIC DOCUMENT RULING], P.D. [NUMBER] (Va. Tax Comm'r [DATE]) (similar facts; relief granted).

6.2. The Department Bears the Burden of Going Forward; Taxpayer Has Met Its Burden.

While the Taxpayer ultimately bears the burden of proving the Assessment erroneous, see Va. Code § 58.1-205, that presumption does not relieve the Department of identifying a statutory basis for its adjustment. The administrative record reflects [describe the absence of a sound legal basis / arithmetic error / misclassification].

6.3. Penalty Abatement Is Warranted.

Penalties asserted under [STATUTE] must be abated where the Taxpayer acted with reasonable cause and in good faith. Va. Code § 58.1-105; Public Document P.D. [NUMBER]. Taxpayer [describe reliance on professional advice / Department guidance / the complexity of the transaction / first-time noncompliance].

6.4. Interest Should Run Only on the Properly Determined Liability.

Statutory interest under § 58.1-15 attaches only to a liability that is in fact owed. If the underlying tax is abated, interest must be abated commensurately.

7. CALCULATION OF DISPUTED AMOUNT

8. REQUEST FOR RELIEF

WHEREFORE, Taxpayer respectfully requests that the Tax Commissioner:

• A. Correct the Assessment by abating $[AMOUNT] of contested tax;
• B. Abate associated penalties of $[AMOUNT] for reasonable cause under Va. Code § 58.1-105;
• C. Abate interest commensurate with the abated tax under Va. Code § 58.1-15;
• D. Issue a refund of any overpaid amounts already collected, with statutory interest under Va. Code § 58.1-1833;
• E. Confirm in writing that collection activity is suspended pending final determination pursuant to Va. Code § 58.1-1822;
• F. Grant such other and further relief as is just and proper.

9. HEARING ELECTION AND STAY OF COLLECTION

9.1. Hearing. Taxpayer [REQUESTS / WAIVES] an informal in-person or telephonic conference. If an informal conference is granted, please coordinate scheduling through the undersigned representative.

9.2. Stay of Collection. Filing of this Appeal automatically suspends collection of the contested assessment until the Tax Commissioner issues a final determination, pursuant to Va. Code § 58.1-1822 and Department policy. Taxpayer requests written confirmation of the collection hold.

9.3. Payment Under Protest (Optional). [If applicable:] Taxpayer has paid the contested amount under protest by check no. [####] dated [DATE] to preserve the right to a refund and to halt accrual of interest, without conceding liability.

10. RESERVATION OF RIGHTS AND FURTHER APPEAL

10.1. Taxpayer reserves the right to supplement this Appeal upon receipt of further information or in response to Department inquiries.

10.2. Taxpayer reserves all rights to seek judicial review in a Virginia Circuit Court pursuant to Va. Code § 58.1-1825 within the longer of (i) three (3) years from the date of assessment or (ii) one (1) year from the Tax Commissioner's final determination under § 58.1-1822.

10.3. Taxpayer reserves all rights under the Virginia Taxpayer Bill of Rights (Va. Code § 58.1-1845), including the right to request the assistance of the Department's Taxpayer Rights Advocate.

11. VERIFICATION

I, [TAXPAYER / OFFICER NAME], declare under penalty of perjury under the laws of the Commonwealth of Virginia that I have read the foregoing Administrative Appeal and accompanying exhibits, and the factual statements set forth herein are true and correct to the best of my knowledge, information, and belief.

[________________________________]

[NAME], [TITLE]

Date: [DATE]

12. SIGNATURE BLOCK AND POWER OF ATTORNEY

Respectfully submitted,

[LAW FIRM / CPA FIRM NAME]

By: [________________________________]

[ATTORNEY / CPA NAME]

Virginia State Bar No. / VA CPA License No. [####]

Authorized Representative for Taxpayer

[FIRM ADDRESS]

[CITY, STATE ZIP]

Telephone: [NUMBER]

Email: [EMAIL]

Enclosure: Virginia Form PAR 101 (Power of Attorney) — Exhibit A

13. CERTIFICATE OF SERVICE

I certify that on [DATE], I caused a true and correct copy of the foregoing Administrative Appeal, with all exhibits, to be served on the Virginia Department of Taxation via Certified Mail, Return Receipt Requested, addressed to:

Tax Commissioner
Virginia Department of Taxation
Office of Tax Policy / Appeals & Rulings
P.O. Box 27203
Richmond, Virginia 23218-7203

A copy was also submitted electronically through the Department's online portal (where available).

[________________________________]

[REPRESENTATIVE NAME]

14. VIRGINIA PRACTICE NOTES

• Strict 90-day window. Va. Code § 58.1-1821 measures the period in calendar days (including weekends and holidays) starting the day after the date of assessment. Virginia Tax strictly enforces this — an incomplete filing returned for additional information is treated as untimely. File by certified mail with proof of mailing, and keep a duplicate filing through the online portal where available.
• No separate Tax Court. Unlike many states, Virginia routes administrative appeals directly to the Tax Commissioner. There is no intermediate tax tribunal. Judicial review lies in a Virginia Circuit Court (de novo, bench trial, no jury).
• Collection suspension is automatic but interest accrues. Filing the protest stays collection but does not stop interest. Where cash flow permits, consider paying the contested amount under protest and pursuing a refund claim under § 58.1-1822 / § 58.1-1824 to halt interest.
• Burden of proof. Va. Code § 58.1-205 places the burden on the taxpayer to prove the assessment erroneous. Build the administrative record carefully — anything not raised before the Tax Commissioner may be limited on circuit-court review.
• Public Document rulings. Tax Commissioner rulings (P.D. numbers) are not binding precedent but are highly persuasive. Cite Virginia Tax's online ruling library at tax.virginia.gov.
• Local taxes are different. This template is for state-level taxes administered by the Department. Local tax appeals (BPOL, machinery & tools, local property) follow Va. Code §§ 58.1-3980 to 58.1-3984 and 58.1-3983.1 — different forums and deadlines.
• Judicial appeal venue. Va. Code § 58.1-1825 directs venue to the circuit court designated under Va. Code § 8.01-261(13)(b). Confirm the proper court for your specific tax type before filing.
• Taxpayer Rights Advocate. Va. Code § 58.1-1845 authorizes the Department's Taxpayer Rights Advocate to assist with unresolved disputes. Consider escalation to the Advocate where the case has stalled.

15. SOURCES AND REFERENCES

• Va. Code § 58.1-1821 (Application to Tax Commissioner) — https://law.lis.virginia.gov/vacode/title58.1/chapter18/section58.1-1821/
• Va. Code § 58.1-1822 (Action of Tax Commissioner) — https://law.lis.virginia.gov/vacode/title58.1/section58.1-1822/
• Va. Code § 58.1-1825 (Application to circuit court) — https://law.lis.virginia.gov/vacode/title58.1/chapter18/section58.1-1825/
• Va. Code § 58.1-1845 (Virginia Taxpayer Bill of Rights) — https://law.lis.virginia.gov/vacode/title58.1/chapter18/section58.1-1845/
• 23 VAC 10-20-165 (Administrative appeals regulation) — https://law.lis.virginia.gov/admincode/title23/agency10/chapter20/section165/
• Virginia Tax — Administrative Appeals page — https://www.tax.virginia.gov/administrative-appeals
• Virginia Tax — Public Document rulings library — https://www.tax.virginia.gov/laws-rules-decisions/rulings-tax-commissioner
• Virginia Form PAR 101 (Power of Attorney) — https://www.tax.virginia.gov/forms

Disclaimer: This template is provided for informational purposes only and does not constitute legal advice. An attorney licensed in Virginia must review and customize this document before filing. Laws, citations, and Department procedures change frequently; verify all authorities before use.