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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 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 defined as 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 clarifies a taxpayer's appeal rights. An application should be filed with the Commissioner of the Revenue's office. 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. 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, over-payments will be refunded or underpayments assessed. Assessment appeals do not relieve businesses of paying taxes by the due date.

5. What if I disagree with the determination by the Commissioner of Revenue?

Taxpayers who disagree with the final determination issued by the Commissioner of Revenue may appeal the local determination to the Tax Commissioner of the Commonwealth of Virginia at PO Box 1880, Richmond, VA 23218-1880. The appeal to the State must be filed within 90 days of the final local determination. The appeal shall be in such form as the Tax Commissioner may prescribe and the taxpayer shall serve a copy of the appeal upon the local assessing officer.

The appeal should contain the following: (1) Complete application for review as submitted to the local assessing officer. (2) Local assessing officer's final local determination. (3) A statement explaining why the taxpayer believes the local assessing officer is in error. The statement should include analysis of how the local assessing officer misinterpreted or misapplied facts or legal authority and also include facts, issues and legal authority that the taxpayer believes the local assessing officer failed to take into consideration.

Collection activity may commence or resume at any time after the date of the final local determination and will not be suspended until a Notice of Intent to Appeal or Appeal to the Tax Commissioner is timely filed and the Commissioner of Revenue receives a copy.