Virginia: Sales Tax Handbook
How to appeal a sales tax audit or penalty in Virginia
In Virginia, the Department of Taxation will frequently audit business sales tax returns and may issue penalties or punishments for tardy filing, incorrect reporting, willful omissions, or other violations. Penalties can range from fines to revocation of your sales tax permit depending on the infraction.
If you disagree with a penalty or ruling made by the Virginia Department of Taxation, you have several options you can pursue in appealing their decision. This page contains basic guidelines for appealing to the Department of Taxation, to an administrative appeal body, and through the courts.
Sales Tax Statute of Limitations in Virginia
In sales tax law, the "statute of limitations" is the maximum amount of time state authorities have to investigate and begin potential audit or prosecution related to a a filed Virginia sales tax return in the event of underpayment, incorrect reportings, etc. The Department of Taxation cannot begin an audit or issue a penalty after this timeframe.
The statute of limitations in Virginia is three years from the tax due date. If a fraudulent return was filed or no return at all was filed, it becomes six years from the tax due date.
Appealing to the Department of Taxation in Virginia
If you do not agree with a penalty or decision made by the Virginia Department of Taxation, you have the right to file an appeal and ask for reconsideration. In the case of a department appeal, an official petition must be filed with the Tax Commissioner less than ninety days after notice of assessment
TopAdministrative Sales Tax Appeals in Virginia
This district has no administrative appeal body
TopJudicial Sales Tax Appeals in Virginia
If all other appeal avenues fail, businesses can make a final appeal in the state court system. When working with judicial appeals, the suit must be filed with the Circuit Court within the later of three years following the assessment, or one year following the Commissioner's determination
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