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1. How can I correct an error in my business tax filing?
Local business taxes are self-reported and every effort should be made to file timely and correctly by the required deadlines. If an assessment has been erroneously levied on a business based upon incorrect information, please contact a representative in the business tax division who will determine whether the error can in some cases simply be corrected, as in the case of a typo; for example or whether an administrative appeal should be filed.
2. What is an administrative appeal?
Virginia Code § 58.1-3703.1 A 5 b provides that any person assessed with a local license tax as a result of an appealable event may file an administrative appeal of the assessment within one year from the last day of the tax year for which such assessment is made or within one year from the date of the appealable event, whichever is later, with the Commissioner of the Revenue or other local assessing official. An appealable event is an increase in the assessment of a local license tax payable by a taxpayer, the denial of a refund, or the assessment of a local license tax where none previously was assessed. Business license, tangible personal property, machinery and tools, and transient occupancy taxes may also be appealed under Virginia Code § 58.1-3980 within three years from the last day of the tax year for which such assessment is made or within one year from the date of the assessment, whichever is later.
3. How do I file an appeal?
Virginia Code § 58.1-3983.1 Appeals and Rulings of Local Taxes, clarifies a taxpayer's appeal rights. A letter should be sent to the Commissioner of the Revenue's office stating your intention to appeal. Virginia Code § 58.1-3983.1 states that an appeal must be filed in good faith and sufficiently identify the tax periods covered by the challenged assessments, the amount in dispute, the remedy sought, each alleged error in the assessment, the legal grounds upon which the taxpayer relies and any other facts relevant to the taxpayer's position. Should the appeal be filed on behalf of another person or business, the appeal letter should also include evidence of the authority to file an appeal on behalf of the taxpayer.
4. How long will the appeal take?
You may review the appeal process on the Virginia Policy Library Rulings of the Tax Commissioner website http://www.tax.virginia.gov/laws-rules-decisions/rulings-tax-commissioner/04-28 - Document Number PD 04-28.
5. When will my taxes be due if I am appealing my assessment?
Taxes must be filed and paid on the due date regardless of whether or not an appeal is taking place. Taxes not paid by the due date will result in a late payment penalty plus a monthly interest charge. If you pay your taxes in full and there is an assessment change, overpayments will be refunded or underpayments assessed. Assessment appeals do not relieve businesses of paying taxes by the due date.
6. What can I do if I disagree with my local business license classification?
Taxpayers may appeal to the Virginia Tax Commissioner or request a written ruling from the Tax Commissioner with regard to the classification of the business for Business Professional Occupational License (BPOL) tax purposes, regardless of whether the locality has conducted an audit, issued an assessment, or taken any other action.
7.What if I disagree with the determination of the Commissioner of the Revenue?
Taxpayers who disagree with the Final Local Determination issued by the Commissioner of the Revenue may appeal the local determination to the Tax Commissioner of the Commonwealth of Virginia. The appeal to the State must be filed within 90 days of the final local determination and include the errors made by the local assessing officer and include a copy of the final local determination. A copy of your businesses appeal rights will be included when you are issued the final local determination.