Administrative Code

Creating a Report: Check the sections you'd like to appear in the report, then use the "Create Report" button at the bottom of the page to generate your report. Once the report is generated you'll then have the option to download it as a pdf, print or email the report.

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
6/25/2022

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, www.tax.virginia.gov, 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.

Website addresses provided in the Virginia Administrative Code to documents incorporated by reference are for the reader's convenience only, may not necessarily be active or current, and should not be relied upon. To ensure the information incorporated by reference is accurate, the reader is encouraged to use the source document described in the regulation.

As a service to the public, the Virginia Administrative Code is provided online by the Virginia General Assembly. We are unable to answer legal questions or respond to requests for legal advice, including application of law to specific fact. To understand and protect your legal rights, you should consult an attorney.