Virginia Taxing Information

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The following information is unique to the state of Virginia and the Virginia Department of Taxes. The Compliance Division is the section of the department responsible for enforcement with the Collections Unit being responsible for contacting taxpayers regarding delinquent payments and unfiled returns.

Enforcement Actions

When all or any portion of a tax liability is not paid within 60 days after it becomes collectible, the commissioner may take aggressive enforcement actions including issuing a warrant for levy, filing of liens, revocation or suspension of licenses, offsetting federal refunds and more.

Penalties

If you fail to file a tax return on time or fail to pay a tax due on time, additional penalty fees may be added to your tax liability, including but not limited to: Late Filing - filing an income tax return more than 60 days after the due date will result in a $50 late filing charge. Filing an income tax return after an extended due date will result in a $50 late filing charge as well.

License Revocation

If you fail to collect or remit taxes, your business could be in danger of having the license to operate be revoked. If your license is revoked you must immediately stop conducting any business in Virginia that is covered by the license. Furthermore, the Department may place a notice at your place of business that lets the public know that your business is closed for failure to comply with tax laws. In the case you’re your business or anyone associated with the business has established a poor filing or payment history the Department may require a bond to protect the State’s revenues.

Late or Missing Business Filings

If you file a business return within 60 days of its due date you will not be charged a late filing penalty, however if you owe taxes you will still be assessed interest and a late payment penalty. If you file more than 60 days after the due date you will be charged a $50 late filing penalty even if no tax is due.

Failure to File A Business Tax Return

In the event that you have failed to file a return, the Department will estimate your taxes due, as well as penalties and interest. The estimated tax bill will start the collection process that may include liens, posting of bonds or suspension or revocation of licenses.

Power of Attorney

If you would like to authorize another person to discuss your tax matters with the Department, you will need to authorize that person with either an individual or power of attorney form.

We strive to save our clients money and time, while alleviating stress.  Just as there are many different tax related problems, there are many options for tax resolution.  Call us at 888-589-0955 for a free consultation. In a few minutes we will help you to better assess what options are best for your unique situation.