Virginia Law

Article 3. Collection of Taxes.

Taxes unpaid on the date on which they are due and payable, as prescribed by the Commission pursuant to § 60.2-511, shall bear interest at the rate of one and one-half percent per month from and after such date until payment plus accrued interest is received by the Commission. Interest collected pursuant to this article shall be paid into the Special Unemployment Compensation Administration Fund continued by § 60.2-314.

Code 1950, § 60-77; 1968, c. 738, § 60.1-92; 1982, c. 363; 1986, c. 480.

Any check submitted for payment of taxes due as prescribed by § 60.2-511, which is dishonored by the payer, shall bear a bad check charge of twenty-five dollars. Charges collected pursuant to this section shall be paid into the Special Unemployment Compensation Administration Fund established by § 60.2-314.

1987, c. 114.

If the Commission accepts a form of payment by a means that incurs a charge, the Commission shall add that charge to such payment as described in subsection B of § 2.2-614.1.

1990, c. 687; 2002, c. 719.

No interest shall be assessed against or collected from any employer upon any taxes which accrued against such employer during the period of active service of such employer in the armed forces of the United States. Any proof of such service satisfactory to the Commission shall be sufficient. Any such employer who has already paid to the Commission any interest on taxes which would have been abated under this provision shall be entitled to a refund for the amount of interest so paid upon the filing of an application therefor.

Code 1950, § 60-77.1; 1952, c. 184; 1968, c. 738, § 60.1-93; 1986, c. 480.

If, after notice, any employer defaults in any payment of taxes or payment in lieu of taxes or interest or any penalty assessed pursuant to subsection C of § 60.2-501 and § 60.2-513, the amount due shall be collected by civil action in the name of the Commission. The employer adjudged in default shall pay the fees and costs of such action. Civil actions brought under this article to collect taxes or interest or any penalty from an employer shall be heard by the court at the earliest possible date. Such civil actions may be brought against any officer, employee, or agent of a corporation or partnership in his individual, personal capacity when that person willfully fails to cause the employer to pay the appropriate taxes and he had the authority to do so. No person shall be subject to this section unless it is proved (i) that such person had knowledge of the failure or attempt to make such payment and (ii) that such person had authority to prevent such failure or attempt. In addition to the foregoing remedies the Commission shall have such other remedies as are available to the State Tax Commissioner and county and city treasurers for the collection of taxes generally. The Commission is authorized to compromise, settle and adjust any tax or taxes, including interest, or any penalty assessed against any employer where in the judgment of the Commission the best interests of the Commonwealth will be promoted or served. The Commission may in such cases accept in full settlement of the tax assessed an amount less than that assessed.

Code 1950, § 60-78; 1968, c. 738, § 60.1-94; 1974, c. 466; 1977, c. 445; 1979, c. 634; 1986, c. 480; 1990, c. 687.

When an unsatisfied execution has been returned by an officer, and the employer against whom the judgment has been obtained on which the execution was issued continues in default of payment of taxes, or any portion thereof, such employer may be enjoined from operating and doing business in this Commonwealth until such taxes have been paid. The Circuit Court of the City of Richmond shall have exclusive original jurisdiction to grant such injunction upon the complaint of the Commission. Notice of the time and place when the application for the injunction will be made shall be served on the employer, and a copy of the bill of complaint shall be served with the notice.

Code 1950, § 60-79; 1968, c. 738, § 60.1-95; 1986, c. 480.

A. 1. In the event of any distribution of an employer's assets, taxes, interest and penalty then or thereafter due shall be a lien against such assets, prior to all claims of lien and general creditors. Taxes accruing by reason of an employment for an employer who is a receiver, trustee or other fiduciary shall be a lien against all the assets in the custody or control of such receiver, trustee or other fiduciary, prior and paramount to all other claims of lien and general creditors.

2. Nothing in this article shall be construed in derogation of any prior lien of the Commonwealth or any of its political subdivisions, nor any mortgage, deed of trust or other lien duly perfected prior to the date the taxes or any part thereof first accrued. However, no such lien in favor of the Commonwealth or any of its subdivisions, nor any mortgage, deed of trust or other lien shall in any case be preferred, paramount or prior to the lien for taxes due by any such receiver, trustee or other fiduciary upon payrolls earned in the employment of such receiver, trustee or other fiduciary.

B. 1. Any taxes, interest or penalty imposed by this chapter shall be a lien upon the assets of the business of any employer, subject to this chapter's provisions, who leases, transfers or sells out his business, or ceases to do business. Such employer shall be required, by the next reporting date as prescribed by the Commission, to file with the Commission all reports and pay all taxes due with respect to wages payable for employment up to the date of such lease, transfer, sale or cessation of the business. Such employer's successor in business shall be required to withhold sufficient of the purchase money to cover the amount of the taxes due and unpaid until such time as the former owner or employer produces a receipt from the Commission showing that the taxes have been paid, or produces a certificate from the Commission that no taxes are due.

2. If the purchaser of a business or successor of such employer fails to withhold purchase money or any money due to such employer in consideration of a lease or other transfer and the taxes are due and unpaid after the next reporting date, as set forth in subdivision 1 of this subsection, such successor shall be personally liable to the extent of the assets of the business so acquired for the payment of the taxes accrued and unpaid on account of the operation of the business by the former owner or employer.

3. Whenever the purchaser or successor of such employer files with the Commission a written request for a statement showing the amount of any tax due by such employer, unless such statement is furnished to such purchaser or successor within ninety days from the date such written request was filed, such purchaser or successor shall not be liable for any tax or taxes due by such employer, and the lien created by this section shall thereupon be released and discharged.

Code 1950, § 60-80; 1968, c. 738, § 60.1-96; 1977, c. 445; 1986, c. 480.

A. If within three years after the date on which any taxes or interest are paid an employing unit which paid such taxes or interest applies (i) for adjustment in connection with subsequent tax payments, or (ii) for a refund thereof because such adjustment cannot be made, and the Commission determines that such taxes or interest or any portion thereof was erroneously collected, or within sixty days from the final determination of any change or correction in the liability of the employing unit for any tax payable under this chapter, whichever is later, subject to the availability of Commission records, the Commission shall allow such employing unit to make an adjustment, without interest, in connection with subsequent tax payments by it. If such adjustment cannot be made, the Commission shall refund the amount, without interest, from the fund. For like cause and within the same period, an adjustment or refund may be so made on the Commission's own initiative.

B. Where the Commission finds upon satisfactory proof that any employing unit has erroneously paid to this Commonwealth taxes or interest upon wages earned by individuals in employment in another state, or under the provisions of the Federal Railroad Unemployment Insurance Act, a refund or adjustment shall be made, without interest, and without regard to the due date.

C. Where the Commission finds that an instrumentality of the United States has paid to this Commonwealth taxes or interest upon wages for any year with respect to which this Commonwealth is not certified by the Secretary of Labor of the United States under § 3304 of the Internal Revenue Code, a refund shall be made to such instrumentality, without interest, and without regard to the date of payment.

Code 1950, § 60-81; 1956, c. 440; 1968, c. 738, § 60.1-97; 1986, c. 480; 1989, c. 144; 1994, c. 161.