Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 20 - GENERAL PROVISIONS APPLICABLE TO ALL TAXES ADMINISTERED BY THE DEPARTMENT OF TAXATION › Section 23VAC10-20-165 - Administrative appeals

Current through Register Vol. 40, No. 24, July 15, 2024
A.
				Definitions. The following words and terms when used in this section shall have
				the following meanings unless the context clearly indicates otherwise:
"Administrative appeal" means an application for correction
				  of an assessment filed with the Tax Commissioner pursuant to § 58.1-1821
				  of the Code of Virginia.
"Assessment" means a determination of the amount of tax,
				  including additional or omitted tax, that is due. An assessment includes a
				  written assessment made pursuant to a notice by the department or a
				  self-assessment made by a taxpayer upon the filing of a return or otherwise not
				  pursuant to notice. A return filed or tax paid before the last day prescribed
				  by law for the filing or payment thereof shall be deemed to be filed or paid on
				  the last day specified for the filing of a return or the payment of tax, as the
				  case may be. The denial of a refund claim is deemed to be an assessment, and a
				  taxpayer may file an administrative appeal in response to the denial of a
				  refund claim.
"Collection action" means the use of any means permitted by
				  law, direct or indirect, by the department, or collection agencies authorized
				  by the department, to obtain payment on an assessment.
"Complete appeal" means an administrative appeal containing
				  sufficient information, as prescribed in subsection D of this section, so that
				  the grounds upon which the taxpayer relies in contesting an assessment are
				  fully set forth to allow the Tax Commissioner to make an informed final
				  determination.
"Date of assessment" means, for purposes of filing an
				  administrative appeal, the date stated on the notice of assessment. In the case
				  of a denial of a refund claim, the date of assessment is the date of the
				  department's correspondence informing the taxpayer that the refund claim is
				  denied. If the department fails to act within three months on an amended return
				  claiming a refund, the date of assessment is the day following the expiration
				  of the three-month period for the purpose of permitting the taxpayer to pursue
				  an administrative appeal under § 58.1-1821 of the Code of Virginia.
"Department" means the Virginia Department of Taxation and
				  its employees.
"Determination" means the Tax Commissioner's written final
				  determination issued pursuant to § 58.1-1822 of the Code of Virginia to a
				  taxpayer's administrative appeal. A determination also includes the Tax
				  Commissioner's written response to a request for reconsideration pursuant to
				  subsection F of this section, except as provided in subdivision F 5 of this
				  section.
"Notice of assessment" means the department's official form
				  labeled "Notice of Assessment" that contains written information that sets out
				  the date of the assessment, amount of assessment, the tax type, taxable period,
				  account number, bill number and name of the taxpayer. A subsequent statement of
				  balance due the department does not constitute a new notice of assessment. Such
				  subsequent statements include reports of payments applied to assessments,
				  updated bills reflecting additional accrued interest, or other changes to an
				  assessment. A notice of assessment may be preceded by correspondence proposing
				  adjustments to a filed return based on an audit or other information received
				  by the department. Such correspondence is not a notice of assessment but is
				  intended to provide taxpayers an opportunity to correct any errors before an
				  assessment is made.
"Notice of intent to appeal" means a taxpayer's written
				  statement filed with the department that informs the department of a taxpayer's
				  intent to file an administrative appeal of an assessment to the Tax
				  Commissioner.
"Tax Commissioner" means the chief executive officer of the
				  Department of Taxation.
"Taxpayer" means a person, corporation, partnership, limited
				  liability company, organization, trust or estate or other entity subject to the
				  taxes administered by the Department of Taxation.
B. Administrative appeal process.
1. Taxpayer appeal rights.
a. Section 58.1-1821 of the Code of Virginia
				gives a taxpayer the right to an administrative appeal of an assessment issued
				by the Department of Taxation, if the taxpayer believes that the department has
				incorrectly assessed tax, penalty or interest. The administrative appeal must
				include all elements listed in subsection D of this section.
b. The 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. See subsection C of this section for computing the 90-day
				limitations period.
c. A taxpayer
				is not required to pay the portion of an assessment that is the subject of an
				administrative appeal until the Tax Commissioner has issued a determination
				that requires such payment unless the Tax Commissioner determines collection is
				in jeopardy.
d. An administrative
				appeal may be filed with the department by hand delivery, email, common
				carrier, delivery service, United States mail, facsimile transmission or by any
				other means that ensures the filing of a complete appeal to the department
				within the 90-day limitations period.
e. The department will determine the manner
				best suited to resolve an appeal, which may include submission of additional
				documents and memoranda, further audit, holding a conference with the taxpayer
				or the taking of testimony.
f. An
				administrative appeal of an assessment filed pursuant to § 58.1-1821 of
				the Code of Virginia is not subject to the Administrative Process Act (§
				2.2-4000 et seq. of the Code of Virginia).
g. An application under § 58.1-1821 of
				the Code of Virginia does not extend the period in which a taxpayer may apply
				to a court under § 58.1-1825 of the Code of Virginia. See
				23VAC10-20-190 C.