Tax Overview: Virginia
Virginia tax debts are handled by the Department of Taxation and can trigger liens, levies, and wage garnishments. The state's OIC program will stop collections while under review. Installment agreements are available up to 12 months without financials. IAs will NOT lift garnishments, but the state is notably responsive on garnishment modifications — agents can fax a modification to the employer the same day. Virginia has a 20-year statute for tax liens.
Key Tax Facts
- OIC available via Form 21-OIC-IND — WILL stop collections
- Installment agreements up to 12 months without financials
- Over 12 months: complete last 2 pages of OIC form for financial disclosure
- Client must be compliant with ALL returns for any resolution
- IA will NOT lift garnishment or levy
- Garnishment modification: provide pay frequency and payroll fax number — agent faxes modification to employer same day
- 20-year statute for state tax liens
- State does NOT have W2 information unless client filed an actual return
Common Tax Issues
The 12-month without-financials limit is relatively short — many taxpayers need the extended option
IAs do not lift garnishments, but the same-day modification process is faster than most states
The state's lack of W2 data without a filed return can complicate verification of income and withholding
20-year lien statute means Virginia debts persist nearly as long as NY and CA
Resolution Options in Virginia
Payment Plans (Installment Agreements)
Without financials: Up to 12 months
With financials: Up to 24 months
12 months without financials. Over 12 months: complete last 2 pages of OIC form. Must be compliant with ALL returns. IA will NOT lift garnishment.
Offer in Compromise (OIC)
Available: Yes
Stops collections while pending
Form: Form 21-OIC-IND
WILL stop collections.
Wage Garnishment
Rate: Varies
Can lift with payment plan: No
Can reduce amount: Yes
Provide pay frequency and payroll fax number. Agent faxes modification to employer same day.
Penalty Abatement
Available: Yes
Bank Levy
Can release: No
Recent Tax Changes
- Rates unchanged (2%-5.75%)
Official Resources
How Tax Advocate Group Helps Virginia Taxpayers
Whether you're dealing with the IRS, the Virginia Department of Taxation, or both — we provide comprehensive tax resolution services to Virginia residents and businesses.