Code of Virginia
Chapter 18 - Enforcement, Collection, Refund, Remedies and Review of State Taxes
§ 58.1-1812. Assessment of omitted taxes by the Department of Taxation

A. If the Tax Commissioner ascertains that any person has failed to make a proper return or to pay in full any proper tax, he shall assess the taxes prescribed by law, adding to the taxes so assessed the penalty prescribed by law, if any, for the failure to file a return (if a return was required by law but not filed within the time prescribed by law) and the penalty or penalties prescribed by law for the failure to pay the taxes and penalty or penalties within the time prescribed by law. If no penalty is so prescribed, he shall assess a penalty of five percent of the tax due, or if the failure to pay in full was fraudulent, a penalty of 100 percent of the tax due. In addition thereto, interest on the outstanding tax and penalty shall be charged at the rate established under § 58.1-15 for the period between the due date and the date of full payment.
Except as otherwise provided by law, the amount of tax shall be assessed within three years after the return was filed, whether such return was filed on or after the date prescribed, and no proceeding in court without assessment shall be begun for the collection of such tax after the expiration of such period. A return of tax filed before the last day prescribed by law for the timely filing thereof shall be considered as filed on the last day. A return of recordation tax shall be considered as having been filed on the date of recordation. If no return is filed, the tax may be assessed within six years of the date such return was due. If a false or fraudulent return is filed with intent to evade the payment of tax, an assessment may be made at any time.
Upon such assessment, the Department of Taxation shall send a bill therefor to the taxpayer and the taxes, penalties, and interest shall be remitted to the Department of Taxation within 30 days from the date of such bill. Effective January 1, 2023, such bill and notice of assessment shall identify the date the initial return or payment was received by the Department, any payment amounts received, and an explanation of the taxes, penalties, and interest related to such assessment on such taxpayer. If such taxes, penalties, and interest are not paid within such 30 days, interest at the rate provided herein shall accrue thereon from the date of such assessment until payment.
B. The Department of Taxation shall not assess penalty or interest on any assessment of tax for the recovery of an erroneous refund, provided that the tax is paid to the Department within 30 days from the date of the bill. If the tax is not remitted to the Department within 30 days from the date of such bill, interest at the rate provided herein shall accrue thereon from the date of such assessment until payment.
As used in this section, "erroneous refund" means any refund of tax resulting solely from an error by the Department of Taxation that results in the taxpayer receiving a refund to which the taxpayer is not entitled.
Code 1950, §§ 58-1160, 58-1161, 58-1162; 1971, Ex. Sess., c. 13; 1972, c. 721; 1973, c. 446; 1976, c. 456; 1977, c. 396; 1980, c. 663; 1984, c. 675; 1986, c. 39; 2022, c. 202.

Structure Code of Virginia

Code of Virginia

Title 58.1 - Taxation

Chapter 18 - Enforcement, Collection, Refund, Remedies and Review of State Taxes

§ 58.1-1800. Local treasurer to receive state taxes; list of delinquent taxes

§ 58.1-1801. Delinquent lists involving state taxes to be transmitted to the Department of Taxation; crediting treasurer; collections

§ 58.1-1802. When delinquent state taxes charged off; notification and record of charge-off

§ 58.1-1802.1. Period of limitations on collection; accrual of interest and penalty

§ 58.1-1802.2. Delinquent returns; enforcement; when approval required

§ 58.1-1803. Department of Taxation may appoint collectors of delinquent state taxes; Contract Collector Fund established

§ 58.1-1804. Collection out of estate in hands of or debts due by third party

§ 58.1-1805. Memorandum of lien for collection of taxes; release of lien

§ 58.1-1806. Additional proceedings for the collection of taxes; jurisdiction and venue

§ 58.1-1807. Judgment or decree; effect thereof; enforcement

§ 58.1-1808. Collection in foreign jurisdiction

§ 58.1-1809. Jurisdiction over Commonwealth for purpose of determining validity, amount and priority of tax lien

§ 58.1-1810. Reserved

§ 58.1-1812. Assessment of omitted taxes by the Department of Taxation

§ 58.1-1813. Liability of corporate officer or employee, or member, manager or employee of partnership or limited liability company, for failure to pay tax, etc.

§ 58.1-1814. Criminal liability for failure to file returns or keep records

§ 58.1-1815. Willful failure to collect and account for tax

§ 58.1-1816. Conversion of trust taxes; penalty; limitation of prosecutions

§ 58.1-1817. Installment agreements for the payment of taxes

§ 58.1-1817.1. Waiver of tax penalties for small businesses

§ 58.1-1818. Taxpayer problem resolution program; taxpayer assistance orders

§ 58.1-1819. Reserved

§ 58.1-1820. Definitions

§ 58.1-1821. Application to Tax Commissioner for correction

§ 58.1-1822. Action of Tax Commissioner on application for correction

§ 58.1-1823. Reassessment and refund upon the filing of amended return or the payment of an assessment

§ 58.1-1824. Protective claim for refund

§ 58.1-1825. Application to court for correction of erroneous or improper assessments of state taxes generally

§ 58.1-1826. Action of court

§ 58.1-1827. Correction of double assessments

§ 58.1-1828. Appeal

§ 58.1-1829. Costs in proceedings under §§ 58.1-1825 through 58.1-1828

§ 58.1-1830. Effect of order

§ 58.1-1831. No injunctions against assessment or collection of taxes

§ 58.1-1832. Chapter includes taxes, levies, penalties and interest

§ 58.1-1833. Interest on overpayments or improper collection

§ 58.1-1834. Taxpayer meetings; representation; recording meetings

§ 58.1-1835. Abatement of any tax, interest, and penalty attributable to erroneous written advice by the Department

§ 58.1-1836. Reserved

§ 58.1-1840. Repealed

§ 58.1-1840.1. Repealed

§ 58.1-1840.2. Virginia Tax Amnesty Program

§ 58.1-1845. Virginia Taxpayer Bill of Rights