Current through Register Vol. 41, No. 3, September 23, 2024
A.
Filing.
1. Amended returns claiming a refund
of any tax administered by the Department of Taxation are governed by §
58.1-1823 of the Code of Virginia.
2. The amended return shall supply all the
information required in an original return and, in addition, the taxpayer must
attach a statement explaining the changes made and the reasons for the changes.
If the refund claim is due to a change in federal taxable income or estate, the
taxpayer must furnish a copy of the Revenue Agent's Report or other appropriate
notice that the change has been accepted by the Internal Revenue Service.
a. When a dealer is applying for a refund of
sales tax, the dealer shall attach a list of the purchasers from whom the tax
was collected and to whom the refund and interest, if allowed, will be
paid.
b. When a consumer is
applying for a refund of sales or use tax assessed against a dealer or
contractor, the consumer shall identify the dealer or contractor, explain the
circumstances surrounding the payment by the consumer, and explain why the
claim for refund could not or would not be made by the dealer or
contractor.
3. See
§ 58.1-9 of the Code of Virginia for provisions relating to filing a
return by mail.
B. Final
determination. For the purposes of §§ 58.1-311 and 58.1-1823 of the
Code of Virginia, any one of the following shall be deemed a final
determination of a change in liability for the federal tax:
1. Payment or refund of any federal income or
estate tax not the subject of any other final determination described in
subdivision 2, 3, 4, or 5 of this subsection . The payment of a federal income
or estate tax is a final determination for Virginia purposes even though a
refund suit may be pending or contemplated that could result in another final
determination;
2. The receipt of an
assessment or other notice that the amount of deficiency or overassessment
stated on federal Form 870 or similar form has been agreed to by the
IRS;
3. The expiration of the
90-day time period (150-day period in the case of notice addressed to a person
outside the states of the union and the District of Columbia) within which a
petition for redetermination may be filed with the United States Tax Court with
respect to a statutory notice of deficiency issued by the Internal Revenue
Service, if a petition is not filed with that court within such time;
4. A closing agreement entered into with the
Internal Revenue Service under § 7121 of the Internal Revenue Code (
26 USC § 1
et seq.). The final determination shall occur when the
taxpayer receives notice of the signing by the Commissioner of Internal
Revenue;
5. A decision by the
United States Tax Court, a United States district court, the U.S. Claims Court,
a United States court of appeals, or the United States Supreme Court that has
become final, or the date the court approves a voluntary agreement stipulating
disposition of the case.
C. Assessment. The denial in whole or in part
of a taxpayer's claim for refund, or the department's failure to act within
three months, is treated as an assessment for the purpose of permitting a
taxpayer to pursue other administrative and judicial remedies, but only as to
matters first raised by the amended return. Therefore an amended return should
not be filed if the claim for refund involves issues that were previously
considered in the course of an audit, application for correction, or protective
claim.
Statutory Authority: § 58.1-203 of the Code of
Virginia.
