58.1-312 - Limitations on assessment.
§ 58.1-312. Limitations on assessment.
A. The tax imposed by this chapter may be assessed at any time if:
1. No return is filed;
2. A false or fraudulent return is filed with intent to evade tax;
3. The taxpayer fails to comply with § 58.1-311 in not reporting a change orcorrection increasing his federal taxable income as reported on his federalincome tax return, or in not reporting a change or correction which istreated in the same manner as if it were a deficiency for federal income taxpurposes, or in not filing an amended return; or
4. The taxpayer fails to comply with § 58.1-311.1 by not reporting a changeor correction decreasing the tax paid to another state for which a credit wasclaimed on his Virginia income tax return as a result of an examinationconducted by any other state or an amended income tax return filed with anyother state.
B. The tax may be assessed within six years after the return was filed,whether such return was filed on or after the date prescribed, if thetaxpayer knowingly failed to disclose on his state income tax return atransaction identified by the Tax Commissioner as an abusive tax avoidancetransaction and published as provided in § 58.1-204. A return of tax filedbefore the last day prescribed by law for the timely filing thereof shall beconsidered as filed on the last day. If such return is false or fraudulent,an assessment may be made at any time whether or not the falsity or fraud isrelated to the abusive tax avoidance transaction.
C. If the taxpayer pursuant to § 58.1-311 or 58.1-311.1 reports a change orcorrection or files an amended return increasing his federal taxable income,decreasing the tax paid to another state, or reports a change or correctionwhich is treated in the same manner as if it were a deficiency for federalincome tax purposes, the assessment (if not deemed to have been made upon thefiling of the report or amended return) may be made at any time within oneyear after such report or amended return was filed. The amount of suchassessment of tax shall not exceed the amount of the increase in Virginia taxattributable to such federal change or correction. The provisions of thisparagraph shall not affect the time within which or the amount for which anassessment may otherwise be made.
D. If a deficiency is attributable to the application to the taxpayer of anet operating loss carry-back, or to a net capital loss carry-back, it may beassessed at any time that a deficiency for the taxable year of the loss maybe assessed.
E. An erroneous refund shall be considered an underpayment of tax on the datemade, and an assessment of a deficiency arising out of an erroneous refundmay be made at any time within two years from the making of the refund,except that the assessment may be made within five years from the making ofthe refund if it appears that any part of the refund was induced by fraud ormisrepresentation of a material fact.
F. If a return is required for a decedent or for his estate during the periodof administration, the tax shall be assessed within eighteen months afterwritten request therefore (made after the return is filed) by the executor,administrator or other person representing the estate of such decedent, butnot more than three years after the return was filed, except as otherwiseprovided in this subsection.
(Code 1950, § 58-151.0104; 1971, Ex. Sess., c. 171; 1984, c. 675; 2006, c.234; 2007, c. 524.)