Administrative Code

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Virginia Administrative Code
Title 23. Taxation
Agency 10. Department of Taxation
Chapter 20. General Provisions Applicable to All Taxes Administered by the Department of Taxation

23VAC10-20-110. Offers in compromise.

A. Generally.

1. The Tax Commissioner has the authority to accept an offer in compromise of a penalty, or to abate a penalty in its entirety, if he determines that such action is justified. An offer in compromise is considered accepted only when the taxpayer is notified in writing by the Tax Commissioner.

2. The Tax Commissioner has the authority to accept an offer in compromise of taxes if he determines that the assessment is based upon a doubtful and disputed claim or that the tax liability is of doubtful collectibility.

B. Form of submission. An offer in compromise shall be submitted in the form of a letter addressed to the Tax Commissioner. See the department's website,, for contact information and the mailing address for the commissioner. The letter should state that it is an offer in compromise and identify the taxpayer, type of tax involved, taxable period, date and amount of the assessment and contain a complete statement of the reasons for acceptance of the offer. A check payable to the Department of Taxation in the amount of the offer may be attached to the letter in addition to any supporting documents. In the case of an offer in compromise based upon doubtful collectibility, the taxpayer shall submit signed financial statements in sufficient detail to indicate the financial condition of the taxpayer.

C. The Department of Taxation may deposit any payments submitted with offers in compromise into the state treasury unless the taxpayer specifically and clearly directs otherwise.

Statutory Authority

§ 58.1-203 of the Code of Virginia.

Historical Notes

Derived from VR630-1-105, eff. January 1, 1985, with retroactive effect according to § 58.1-203 of the Code of Virginia; amended, Virginia Register Volume 25, Issue 11, eff. March 4, 2009.

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