                                 CODE OF VIRGINIA

DISPOSITION OF RETURNS; HANDLING OF STATE INCOME TAX PAYMENTS; AUDIT (§
58.1-307)

A. As soon as the individual and fiduciary income tax returns have been received
by the commissioner of the revenue and entered upon the assessment sheets or
forms, the commissioner of the revenue shall forward such returns to the
Department. The Department, however, may authorize the commissioner of the
revenue to retain such returns for such length of time as may be necessary to
enable him to review them under &#xA7; 58.1-305 and to use them in ascertaining
delinquents. As soon as practicable after each such return is received by the
Department, it shall examine and audit it. Except in criminal and internal
investigations, the Department shall conduct its audits, inspections of records,
and meetings with taxpayers at reasonable times and places. For purposes of
informal meetings on appeals under &#xA7; 58.1-1821, Richmond shall be a
reasonable place to meet.

B. If any income tax return filed with and received by the commissioner of the
revenue or director of finance or other assessing officer is accompanied by
payment, in whole or in part, of the liability shown on such return, such
officer, within two banking days of receipt of such return, shall deliver such
payment or payments to the treasurer. The commissioner of the revenue or
director of finance or other assessing officer shall maintain a record of the
date on which such payments are received and shall also record the date on which
such payments are delivered to the treasurer. The Auditor of Public Accounts
shall either prescribe or approve the commissioner of the revenue&#8217;s or
director of finance&#8217;s or other assessing officer&#8217;s record-keeping
system and shall audit such records as provided for in Chapter 14 (&#xA7; 30-130
et seq.) of Title 30. The Auditor, in his discretion, upon a showing of hardship
making it difficult to comply with these requirements, may prescribe or approve
alternative arrangements intended to accomplish the same result. The treasurer
shall act in accordance with subsection B of &#xA7; 2.2-806 and 58.1-3168 in the
handling, deposit, and accounting of such payments.

HISTORY: Code 1950, § 58-151.070; 1971, Ex. Sess., c. 171; 1984, c. 675; 1991,
c. 485; 1996, c. 634.