                                 CODE OF VIRGINIA

ACTION OF TAX COMMISSIONER ON APPLICATION FOR CORRECTION (§ 58.1-1822)

If the Tax Commissioner is satisfied, by evidence submitted to him or otherwise,
that an applicant is erroneously or improperly assessed with any tax
administered by the Department of Taxation, or that an action with respect to a
transferred credit or other tax attribute is erroneous, the Tax Commissioner may
order that such assessment or action be corrected. If the assessment exceeds the
proper amount, the Tax Commissioner shall order that the applicant be exonerated
from the payment of so much as is erroneously or improperly charged, if not
already paid into the state treasury, and, if paid, that it be refunded to him.
If the assessment is less than the proper amount, the Tax Commissioner shall
order that the applicant pay the proper taxes. He shall refund to the taxpayer
any exempt funds which have been improperly collected. The Tax Commissioner
shall refrain from collecting a contested assessment until he has made a final
determination under this section unless he determines that collection is in
jeopardy. In any action on an application for correction, the Tax Commissioner
shall state in writing the facts and law supporting the action on such
application.
		For all outstanding liabilities upon which an application for correction has
been filed, interest shall accrue on the outstanding liability at the rate
prescribed by § 58.1-15 until nine months from the date of assessment. From
nine months after the date of the related assessment until the Tax Commissioner
issues a determination under this section, interest shall accrue at the
&#8220;Federal short-term rate&#8221; established pursuant to § 6621(b) of the
Internal Revenue Code. If the Tax Commissioner determines that any portion of
the assessment is correct after considering the application for correction,
accrual of interest at the rate prescribed in § 58.1-15 shall resume 30 days
after the date of the Tax Commissioner&#8217;s action on the application for
correction. If the Tax Commissioner issues a determination within nine months
from the date of assessment, interest shall accrue on the outstanding liability
solely at the rate prescribed by § 58.1-15.

HISTORY: Code 1950, § 58-1119; 1972, c. 721; 1980, c. 633; 1984, c. 675; 1997,
c. 428; 2008, c. 549; 2011, c. 295.