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If you received from the Virginia Department of Taxation a Notice of Tax Lien and Demand for Payment of State Taxes, then so did whichever institution holds your money, such as your bank or credit union. The institution that received the demand is identified on the face of the notice, as is the amount due.
In most cases in Virginia, if your property taxes are delinquent on December 31 following the second anniversary of the due date, the locality can start a foreclosure on your home by filing a lawsuit in court seeking permission to sell the property.
The state has seven years from assessment to collect unpaid taxes through levies, court proceedings, or other actions allowed under state law. The seven-year statute of limitations on tax collection can be extended with the written agreement of the taxpayer.
We generally approve an offer in compromise when the amount you offer represents the most we can expect to collect within a reasonable period of time. Explore all other payment options before you submit an offer in compromise.
However, its critical to note that VA tax liens stay in place for 20 years. Effectively, this means that the state may be able to collect your back taxes through the lien after the seven-year statute expires, but it will not be able to garnish wages or take other actions after the seven-year period expires.
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The cons include: You may not qualify. Not everyone qualifies for OIC. This method is typically best for people who have very few assets and who are low income earners.
An offer in compromise (OIC) is a proposal to settle your tax bill for less than the full amount due. We can consider offers in compromise from individuals and businesses for the following reasons: Waiver of penalties over $2,000 if extenuating circumstances kept you from filing or paying your taxes on time.
You can submit an offer on taxes owed individually and for your business. Youll have to pay an application fee of $205 and make offer payments (based on the method you choose) with your offer submission, unless you meet certain low-income guidelines, which are in the IRS OIC Booklet.
You are liable to pay Virginia income tax as a nonresident on income you earn from any business, trade, profession, or occupation in Virginia. To report this income, file Form 763.
In most cases in Virginia, if your property taxes are delinquent on December 31 following the second anniversary of the due date, the locality can start a foreclosure on your home by filing a lawsuit in court seeking permission to sell the property.

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