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
2/4/2023

23VAC10-20-144. Padlocking premises; remedies.

A. Removal of padlocks. If the taxpayer takes any one of the following actions, the Department of Taxation must cease the distraint and remove the notices and any other devises preventing entry to the business enterprise.

1. Full payment of all assessed taxes. Upon receipt of payment in full in cash or its equivalent for the amount of delinquent taxes specified in the notice to the taxpayer, plus any taxes, penalties and interest assessed after the date of the notice, and after the taxpayer has filed returns for all periods for which returns were delinquent and all taxes then due, the Department of Taxation shall cease the distraint and remove the padlocks.

2. Satisfactory payment arrangement. The Tax Commissioner may enter into a good faith agreement with the taxpayer that provides for the full payment of all delinquent taxes specified in the notice to the taxpayer. The agreement may provide for periodic payments to be made at specific dates. Upon agreement on a satisfactory payment arrangement the Department of Taxation shall cease the distraint and remove the padlocks.

3. Posting of bond. The taxpayer may file an application to the Tax Commissioner for correction of an assessment if he has reason to believe that the assessment is erroneous. However, if a taxpayer files an application after padlocking has occurred, the Department of Taxation will not cease the distraint and remove the padlocks during the time that it is considering the application for correction until the taxpayer has posted a bond in an amount and with security satisfactory to the Tax Commissioner.

B. Levy and sale. If the taxpayer fails to take any of the actions specified in subsection A within three business days after the padlocking of the business enterprise, collection may be enforced as provided in Article 19 (§ 8.01-196 et seq.) of Chapter 3 of Title 8.01 of the Code of Virginia. The Tax Commissioner may cause a writ of fieri facias to be issued or may direct the sheriff to sell property pursuant to a previous writ of fieri facias. As provided in § 8.01-201 of the Code of Virginia, such a writ shall require the sheriff to levy upon the "goods, chattels, and real estate" of the taxpayer.

C. Leased premises. If the business enterprise is located in leased premises and the taxpayer has not taken any of the actions specified in subsection A within three business days after padlocking, then the Department of Taxation may cause a writ of fieri facias to be issued and served as soon as practicable after expiration of the three-day period, if it has not already done so. The sheriff shall be directed to remove the property of the business enterprise from the leased premises for storage pending sale. Notwithstanding the preceding sentence, the Department of Taxation may make arrangements with the sheriff and the owner of the leased premises to store the property of the business enterprise at the leased premises for such time as may be deemed expedient.

Statutory Authority

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

Historical Notes

Derived from VR630-01-1805.1 § 5, eff. April 1, 1990.

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