If you have an unpaid tax bill, you should pay it in full as soon as possible to avoid additional penalties and interest. If you can’t pay in full, you may be able to set up a payment plan.

If you don’t pay or respond to your bill within 30 days, we may take collections actions, such as wage liens or bank liens. We may also refer your account to an outside collections agency. See the information below to learn more about steps we may take and options available if you are facing financial hardship.

For additional information about your rights during the collections process, see our Taxpayer Bill of Rights.

Types of Collections Actions

Wage Liens

Wage Liens

Wage liens are garnishments of wages, salaries, or commissions. We use the garnished funds to pay your overdue tax bill.

  • We'll ask your employer to withhold 25% of your net wages to pay your debts.
  • Your employer will garnish your wages until the balance is paid in full (including penalties and interest).
  • Your employer will send payments directly to us.
  • We will apply the garnished funds to your tax bill.

If a lien will cause adverse impacts, you have options. See "Financial Hardship" below for more information. 

Bank or Financial Institution Liens

Bank or Financial Institution Liens

Bank liens are garnishments of bank accounts and certain investment accounts. 

  • We’ll ask your bank or financial institution to hold any of your assets in the accounts they manage. 
  • The bank or institution is required by law to send funds from those accounts up to the total balance due (Virginia Code § 58.1-1804).
  • They will send payments directly to us from your account. 
  • We will apply the garnished funds to your debt.

The lien will expire after the due date shown on the lien letter. The bank or financial institution will release any holds on your account at that time.

  • If a lien will cause adverse impacts, you have options. See "Financial Hardship" below for more information. 
  • Certain funds are exempt from liens by law. See "Funds Exempt from Liens" below for more information. 
Memorandum of Lien

Memorandum of Lien

If a tax bill remains unpaid after failed collection attempts, we may file a Memorandum of Lien in one or more Circuit Courts.

  • A Memorandum of Lien has the same effect as a judgment in our favor. 
  • It is a matter of public record, and may adversely affect your credit, your ability to purchase items such as an automobile or home, or your ability to obtain employment. 
  • The recorded document will remain in force for 20 years, or until you pay the liabilities in full. 
Referrals to Outside Collections Agencies

Referrals to Outside Collections Agencies

In addition to working with you directly, we refer accounts to the following outside agencies who may reach out to you during the collections process: 

Once your account has been sent to an outside agency, you will work directly with them to address any questions, discuss payment options, and resolve your account. 

Visits to Your Business (Field Collections)

Visits to Your Business (Field Collections)

If other collections activities haven't been successful, Virginia Tax field agents may visit a business during its normal operating hours. We generally will not come to your home unless you are operating a home-based business. 

  • Agents will identify themselves as Virginia Tax employees.
  • Agents will always present an official photo ID.

To learn more about what to expect when working with a Virginia Tax field agent, see our Statement of Expectations: 

 

Financial Hardship

If you believe a lien creates severe financial hardship, we may be able to adjust the terms based on your circumstances. 

  • To be eligible for a hardship adjustment, you generally must have filed your taxes for the last 3 years.
  • To request consideration, complete a financial statement.
  • Send it to us by email, fax, or mail with your account number, collection ID, and all required documentation.

You can also always call us at 804.367.8045 to discuss your options.

Low-Income Considerations - Hardship Table

If your income is below 250% of Poverty Guidelines, call us at 804.367.8045 to discuss your options, which may include a significantly reduced payment plan. Refer to the table at the bottom of the IRS Taxpayer Advocate Low Income Taxpayer Clinics page here for current Income Ceiling Guidelines.

Funds Exempt From Liens

Under state and federal law, certain property and funds can't be taken by the lien process.

Exempted funds include:

If you believe exempted funds are being incorrectly garnished, notify us in writing. Include: The exemption you are claiming; Why you believe you qualify for the exemption; Documents to support your claim; Your contact information.

Send this information to us by email, fax, or mail.

How We Notify You of Collections Actions

Virginia Tax initiates most collections actions through regular mail delivered by the United States Postal Service. However, in some cases, we will call you to resolve an unpaid tax bill. We will still generally attempt to mail letters to the address we have on file for you first. 

We will never ask for personal information through text messages, over social media, or by other methods that aren’t secure.

Outside Agencies

In addition to working with you directly, we refer accounts to the following outside agencies who may reach out to you during the collections process: 

Once your account has been sent to an outside agency, you need to work directly with them to address any questions, discuss payment options, and resolve your account. 

Questions?

At any time, you can log into your individual online services account to see the following information:

  • Your balance
  • Your payment history
  • Detailed bill information

You can also use your online services account to make additional payments or to set up a payment plan.

To request a summary of all tax liabilities, please call our Customer Service Contact Center and request a Consolidated Bill Notice.