VIRGINIA DEPARTMENT OF TAXATION BACK TAX RELIEF

Get started resolving your state tax liabilities using the information below.  If you still need help, reach out to us using the contact form to the right of this page.

Check out the Virginia Taxpayer Bill of Rights.  Kind of boring, nothing in it that helps all that much.

VA-DOT Monthly Payment Plan

You will need to act quickly with the state of Virginia.  It may be very difficult to set up an installment agreement if you wait more than 30 days from the date of the Notice of Assessment to contact the Department of Taxation. 

More basics to get you started.

• You may be able to set up a payment plan via telephone and the DOT’s Teleplan automated system, available 24 hours/day.
• If you aren’t able to set up an agreement through Teleplan, you will be directed to a Service Representative to help you set it up.
• Your Payment Plan may not be approved if you’ve had a payment plan in the past that wasn’t paid promptly or defaulted.
• If you owe a large sum to the state or if you’ve defaulted payment plans in the past, a lien will be filed before approving your payment plan.
• Expect to have your payment plan set up for direct debit payments.
• 12 months is the standard time allowed for a payment plan.  You may be able to get up to 24 months to pay back the taxes if you can prove that your finances can’t support a bigger payment.

State of Virginia Offer in Compromise

The Virginia Offer in Compromise may be a chance at a fresh start for those of you that qualify.  We suggest reading about the Offer in Compromise online, but here is some basic information to get you going.

• You don’t need to submit a payment with your Offer, but you can.
• If you owe personal tax and business tax, and would like to request a Compromise for both, you will need to complete and submit a separate OIC for each tax debt.
• The OIC may be used to request a Penalty Waiver.
• We suggest reading about the IRS Offer in Compromise to help in determining your ability to pay and your Offer amount.

Penalty Relief

The Department of Taxation may remove penalties for Reasonable Cause.  This means that the accrual of the tax debt was not deliberate and was due to circumstances out of your control. 

Contact the VA-DOT to find out if the Offer in Compromise form will work in your specific situation to request the removal of penalties from your account.