VSCPA Works to Design a Fair and Equitable Tax Appeals Process

November 1, 2005

VSCPA Tax Appeals Task Force Update

By Damon L. DeSue, CPA

In the September/October issue of Disclosures, we introduced the VSCPA Tax Appeals Task Force, which was created to review several alternatives for the creation of an independent Virginia tax dispute resolution process.

Since then, the Task Force has held three meetings to focus on designing a process that provides a fair and equitable mechanism to resolve tax disputes. With input from Task Force members representing the public and private accounting sectors, as well as the legal community, the Task Force is working diligently to design a process to benefit taxpayers in Virginia.

Our goal is to create legislation for consideration by the Virginia General Assembly during the 2006 session.

With the 2006 session in mind, the Task Force is stepping up its efforts to initiate productive activities in the following work areas: legislative drafting, coalition building, internal grassroots awareness and other activities (such as lobbying). Check out our progress in each work area below.

Legislative Drafting

The Task Force's Legislative Subcommittee prepared a draft executive summary and legislative proposal for the tax dispute resolution system. Key elements of these documents include the essential components to designing and implementing a fair and equitable system. The following components are considered essential to developing the system:

  • Overseeing branch of government: executive, judicial or legislative
  • Identification of qualified professionals to hear claims
  • Location of hearings
  • Administrative procedures for filing claims
  • Authority to bind parties to decisions
  • Tax resolution documentation requirements
  • Alternatives for smaller versus larger claims
  • Appeal rights to the courts
  • Taxpayer representation
  • Availability of decisions for public record

As a group, the Task Force will analyze and research the Subcommittee's recommendations and finalize our proposal for review by the VSCPA Board of Directors.

Coalition Building

In addition to drafting legislation, the Task Force is building support for the tax dispute resolution system. A Coalition Subcommittee is assisting the Task Force with strengthening our ability to introduce the proposal to the General Assembly. Representatives from the following organizations have joined the VSCPA in its efforts to promote the tax dispute resolution system:

  • Accountants Society of Virginia
  • Tax Executive Institute
  • Virginia Bar Association
  • Virginia Chamber of Commerce
  • Virginia Manufacturers Association
  • Virginia Society of Enrolled Agents

In addition to these organizations, we are actively soliciting feedback from the Virginia Department of Taxation to ensure that the implementation of a tax dispute resolution process enhances and improves the current system for taxpayers in Virginia.

We are still seeking additional organizations to strengthen our coalition network. To express an interest in becoming a coalition partner, please contact Bill McDermott at (804) 346-9595 or David Dye at (804) 744-0638.

Internal Grassroots Awareness & Other Activities

With the ever-growing interest in the tax dispute resolution system, the Task Force believes that for this process to be successful, we will need active participation from the VSCPA membership to help identify unresolved tax dispute issues in Virginia communities.

The development of this grassroots movement includes receiving information about instances where the current system has contributed to an unfair and non-equitable tax resolution to a specific issue. The Task Force is interested in all categories involving individual or business tax issues. Please send these circumstances to Erin Collins at (800) 733-8272 or Tim Winks at (703) 918-3541.

In addition to soliciting your participation, subcommittees for the Task Force's marketing and lobbying agendas will be formed to establish a cohesive communication channel to the VSCPA membership. During the upcoming months, each subcommittee will design materials to help bolster support for the tax dispute resolution system.

To read the last article on the Task Force's efforts, click here. We appreciate your support of the VSCPA Tax Appeals Task Force.

Damon L. DeSue, CPA, is the director of State & Local Tax Services with Cherry, Bekaert & Holland LLP in Virginia Beach. He is the chair for the VSCPA Tax Appeals Task Force. Contact him at (757) 228-7022.

LAST UPDATED 11/1/2005

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