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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
11/5/2024

23VAC10-20-143. Procedure for padlocking a business enterprise.

A. Order to padlock and notice of distraint. If the Tax Commissioner determines that it is in the best interest of the Commonwealth to cause a business enterprise to cease operations by padlocking, he shall issue an order requiring that such action be done. In issuing an order to padlock and notice of distraint, the Tax Commissioner shall certify:

1. He has determined that padlocking is an appropriate method of collecting delinquent taxes; and

2. There has been compliance by the Department of Taxation with the notice requirements found in 23VAC10-20-142.

B. Delivery of order and notice. The Tax Commissioner or his delegate shall personally deliver the order to padlock and the notice of distraint to the business enterprise. The order and notice will be delivered during the normal business hours of the business enterprise. If the owner of the business enterprise is present, the order and notice shall be presented to the owner. In the absence of the owner, the order and notice shall be presented to the person having responsibility for the operation of the business enterprise. If no such person is present, the order and notice shall be posted. In all cases, the order and notice shall also be mailed to the last known address of the taxpayer.

C. Employees' and customers' personal effects. After delivering or posting the order to padlock and notice, employees and customers of the business enterprise shall be allowed to gather their personal belongings and to leave the premises.

D. All entrances to the business enterprise shall be adequately secured in order to ensure that no individual may enter the business enterprise to remove inventory, merchandise or other property. After all individuals have left the business premises, steps shall be taken to protect the inventory and other property of the business enterprise.

E. Notices of distraint. A copy of the order to padlock and the notice of distraint shall be posted at each entrance of the business enterprise that is padlocked. The notice shall contain the name of the Tax Commissioner's designated agent or agents, street address and telephone number where any person may call concerning the distraint. The notice shall contain a statement that it is a Class 1 misdemeanor for anyone to enter the premises without prior approval of the Tax Commissioner or his designee.

Statutory Authority

§§ 58.1-203 and 58.1-1805 of the Code of Virginia.

Historical Notes

Derived from VR630-01-1805.1 § 4, eff. April 1, 1990.

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