Virginia Tax Commissioner Determines Taxpayer Couldn’t Claim Fixed Date Conformity Subtractions for Overreporting Out-of-State Income

The Virginia Tax Commissioner Sept. 18 determined in a letter ruling that the Department of Taxation (DOT) correctly disallowed Taxpayer’s fixed date conformity subtractions. Taxpayer filed individual income tax returns and claimed fixed date conformity subtractions. The DOT disallowed the subtractions and issued an assessment. Taxpayer asserted that the subtractions were taken to correct an amount of out-of-state income he mistakenly reported to Virginia in a prior year that was carried forward by tax preparation software. The commissioner noted that if Taxpayer overreported out-of-state income to Virginia for a prior year, his remedy would be to claim an out-of-state credit ...