TAX DEBT RELIEF OPTIONS – Virginia Department of Taxation

M&M Financial has been successfully resolving back tax liabilities for small businesses and individuals in Virginia since 2007 and nationwide since 2005.  We deal with the IRS and State taxing authorities, so you do not have to!  

If you or your business owe the Virginia Department of Taxation back-taxes we recommend first reading the Virginia Taxpayer Bill of Rights.

Below is some information that will help you start resolving your state tax liabilities.  If you have questions and would like to talk to a licensed Tax Resolution Specialist please do not hesitate to call us at 866-487-5624.


The best way for many taxpayers to settle their Virginia Department of Taxation tax liability is through a Payment Agreement.  If you receive a Notice of Assessment from VA-DOT, it’s imperative you set up a Payment Agreement within 30 days of the date on the notice.  Otherwise, it may be difficult to get an Agreement approved.    

Here are the basic parameters of VT-DOT Payment Plans:

An Automated Monthly Payment Plan may be set up if you owe less than $25,000 in tax, penalties and interest. You cannot have the following actions on your account for this agreement.
  • Padlock
  • Revocation
  • Criminal Warrant
  • Current Bankruptcy
  • Assignment to Virginia Tax Field Agent
  • Assigned to an Outside Collection Agency
  • and more
If you owe more than $25,000 you may be required to pay 10% to 20% down payment and 12 months is the standard term allowed. You may be able to negotiate up to 24 months or more. Additional stipulations may apply. We successfully negotiated a 96 month Installment Agreement in 2022 and a 47 month Installment Agreement in 2021 for clients in Virginia.


Offer in Compromise & Penalty Relief

Virginia does have an Offer n Compromise (OIC) program available for those that have accrued a tax liability and cannot pay the total balance due.  The OIC may also be used to request the abatement of penalties greater than $2,000, if you’ve had a circumstance out of your control and did not willingly neglect your tax obligation.  

You can learn about your Virginia Offer in Compromise HERE.


The Virginia Department of Taxation has some flexibility when it comes to back tax liabilities.  Each case varies based on factors such as your compliance history, type of tax owed and total amount past due.  Here are some case examples in your state negotiated by M&M.

page last reviewed 01/17/2024

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