Virginia Tax Commissioner Rules on Statute of Limitations for Collection of Individual Income Tax Assessments

The Virginia Tax Commissioner issued a ruling regarding the collectability of individual income tax assessments for tax years 1997, 1998, and 1999. The Commissioner determined that the Department of Taxation initiated collection actions within the applicable 20-year statute of limitations period, thus the assessments remained collectible until paid in full. However, the Commissioner determined that penalties and interest should not have accrued after September 13, 2018, due to the lack of contact with the taxpayer and no memorandum of lien having been filed in a jurisdiction in which the taxpayer owned real estate. [Va. Dep’t of Tax’n, Ruling of the ...