reglab/statecodes huggingface dataset:
2023 Code of Virginia › Title 58.1 - Taxation › Chapter 3 - Income Tax › § 58.1-476. Continuation of employer liability until notice

Once an employer has become liable to a return of withholding, he must continue to file a return even though no tax has been withheld, until such time as he notifies the Tax Commissioner, in writing, that he no longer has employees or that he is no longer liable for such returns. If an employer requests in writing that he be permitted to change from a monthly return to a quarterly return on the ground that his withholding has become less than $300 for each quarter, such change shall be permitted only at the beginning of a calendar year.
Code 1950, § 58-151.13; 1962, c. 612; 1968, c. 12; 1970, c. 540; 1972, c. 827; 1973, c. 279; 1974, c. 636; 1975, c. 49; 1977, cc. 396, 663; 1981, c. 283; 1984, c. 675.
2023 Code of Virginia › Title 58.1 - Taxation › Chapter 3 - Income Tax › § 58.1-477. Extensions

The Tax Commissioner may grant an employer a reasonable extension of time for filing any return under this article whenever in his judgment good cause exists. Whenever under the terms of such an extension the payment of any amount or amounts of money to the Tax Commissioner by the employer is postponed for a longer period than ten days from the time the same would be otherwise due and payable, such employer shall be charged with interest on such amount or amounts at a rate determined in accordance with § 58.1-15, from the time such amount or amounts were originally due and payable to the date of payment under the terms of the extension.
Code 1950, § 58-151.13; 1962, c. 612; 1968, c. 12; 1970, c. 540; 1972, c. 827; 1973, c. 279; 1974, c. 636; 1975, c. 49; 1977, cc. 396, 663; 1981, c. 283; 1984, c. 675.
2023 Code of Virginia › Title 58.1 - Taxation › Chapter 3 - Income Tax › § 58.1-478. Withholding tax statements for employees; employers must file annual returns with Tax Commissioner; penalties

A. Every person required to deduct and withhold from an employee's wages under this article shall furnish to each such employee in respect to the remuneration paid by such person to such employee during the calendar year, on or before January 31 of the succeeding year, or if his employment is terminated before the close of such calendar year, on the day on which the last payment of remuneration is made, a written statement in duplicate showing the following: (i) the name of such person; (ii) the name of the employee and his social security account number; (iii) the total amount of wages; and (iv) the total amount deducted and withheld under this article by such employer.
B. The written statements required to be furnished pursuant to this section in respect of any remuneration shall be furnished at such other times, shall contain such other information, and shall be in such form as the Tax Commissioner may by regulations prescribe.
C. 1. Every employer shall file an annual return with the Tax Commissioner, setting forth such information as the Tax Commissioner may require, not later than January 31 of the calendar year succeeding the calendar year in which wages were withheld from employees, and such annual return shall be accompanied by an additional copy of each of the written statements furnished to each employee under subsections A and B.
2. Every employer shall file the annual return and copies of written statements required under this subsection using an electronic medium using a format prescribed by the Tax Commissioner. Waivers shall be granted only if the Tax Commissioner finds that this requirement creates an unreasonable burden on the employer. All requests for waiver shall be submitted to the Tax Commissioner in writing.
D. The Tax Commissioner shall have the authority to require every employer to furnish the names and social security numbers of all employees whose wages or withholding amounts for the taxable year are below levels specified by the Tax Commissioner.
Code 1950, § 58-151.14; 1962, c. 612; 1971, Ex. Sess., c. 171; 1984, c. 675; 1987, c. 9; 1998, c. 335; 2001, cc. 297, 307; 2010, cc. 36, 151; 2016, cc. 660, 676.
2023 Code of Virginia › Title 58.1 - Taxation › Chapter 3 - Income Tax › § 58.1-478.1. Information furnished to the Department of Taxation

No person required to deduct and withhold from another employee's wages and to file a return or report of the same, through use of an electronic medium, with the Department of Taxation as provided under this article, shall be required to provide his own social security number for purposes of fulfilling his duty in filing the return or report. However, nothing in this section shall relieve such person who is filing the return or report from including his name, social security number, wages, taxes deducted and withheld, and other information required under this article in any file, batch, return, report, or statement that incorporates the same information for all employees of the organization and that is required under this article to be submitted to the Department.
2007, c. 770.
2023 Code of Virginia › Title 58.1 - Taxation › Chapter 3 - Income Tax › § 58.1-479. Refund to employer; time limitation; procedure

A. Where there has been an overpayment to the Tax Commissioner by the employer under this article, the Tax Commissioner shall order a refund or give credit to the employer only to the extent that the amount of such overpayment was not deducted and withheld from the employee's wages under this article. Every such refund shall be made out of the state treasury on the order of the Tax Commissioner upon the Comptroller.
B. Unless written application for refund or credit is received by the Tax Commissioner from the employer within two years from the date the overpayment was made, no refund or credit shall be allowed.
C. Any employer aggrieved by any action of the Tax Commissioner under this section may proceed in court under §§ 58.1-1825 through 58.1-1830 as though the case involved an assessment of income taxes, except that (i) the limitation shall be two years from the date the alleged overpayment was made, and (ii) the time which shall elapse from the filing of the written application with the Tax Commissioner under subsection B to the time when the Tax Commissioner takes final action with respect to such application shall be excluded from the computation of the period of two years.
Code 1950, § 58-151.16; 1962, c. 612; 1984, c. 675.
2023 Code of Virginia › Title 58.1 - Taxation › Chapter 3 - Income Tax › § 58.1-480. Withheld amounts credited to individual taxpayer; withholding statement to be filed with return

The amount deducted and withheld under this article during any calendar year from the wages of any individual shall be allowed to the recipient of the income as a credit against the tax imposed by this chapter for the taxable year beginning in such calendar year. If more than one taxable year begins in a calendar year, such amount shall be allowed as a credit against the tax for the last taxable year so beginning. As a prerequisite to obtaining such credit the individual taxpayer must file with his income tax return one copy of the withholding statement provided for by § 58.1-478.
Code 1950, § 58-151.17; 1962, c. 612; 1984, c. 675.
2023 Code of Virginia › Title 58.1 - Taxation › Chapter 3 - Income Tax › § 58.1-481. Withheld taxes not deductible in computing taxable income

The tax deducted and withheld under this article shall not be allowed as a deduction either to the employer or to the recipient of the income in computing taxable income under this chapter.
Code 1950, § 58-151.18; 1962, c. 612; 1984, c. 675.
2023 Code of Virginia › Title 58.1 - Taxation › Chapter 3 - Income Tax › § 58.1-482. Certain nonresidents; reciprocity with other states

If the income tax law of another state of the United States or of the District of Columbia results in its residents being allowed a credit under § 58.1-332 sufficient to offset all taxes required by this article to be withheld from the wages of an employee, the Tax Commissioner may by regulation relieve the employers of such employees from the withholding requirements of this article with respect to such employees.
Code 1950, § 58-151.19; 1962, c. 612; 1971, Ex. Sess., c. 171; 1984, c. 675.
2023 Code of Virginia › Title 58.1 - Taxation › Chapter 3 - Income Tax › § 58.1-483. Withholding state income taxes of federal employees by federal agencies

The Tax Commissioner is hereby designated as the proper official to make request for and to enter into agreements with the Secretary of the Treasury of the United States to provide for compliance with this article by the head of each department or agency of the United States in withholding state income taxes from wages of federal employees and paying the same to the Commonwealth. The Tax Commissioner is hereby authorized, empowered and directed to make request for and to enter into such agreements.
Code 1950, § 58-151.20; 1962, c. 612; 1984, c. 675.
2023 Code of Virginia › Title 58.1 - Taxation › Chapter 3 - Income Tax › § 58.1-484. Liability of employer for payment of tax required to be withheld

The employer shall be liable for the payment to the Tax Commissioner of the amounts required to be deducted and withheld under this article and an employer who has withheld and paid such amounts to the Tax Commissioner shall not otherwise be liable to any person for the amount of any such payment.
Code 1950, § 58-151.10; 1962, c. 612; 1984, c. 675.
2023 Code of Virginia › Title 58.1 - Taxation › Chapter 3 - Income Tax › § 58.1-485. Willful failure by employer to make return, to withhold tax, to pay it or to furnish employee with withholding statement; penalty

Willful failure by any employer to (i) make any return required by this article to the Tax Commissioner, (ii) withhold the required tax or to pay it to the Tax Commissioner as specified, or both, or (iii) furnish an employee the written statement required by § 58.1-478 shall be a Class 1 misdemeanor.
Code 1950, § 58-151.15; 1962, c. 612; 1984, c. 675.
2023 Code of Virginia › Title 58.1 - Taxation › Chapter 3 - Income Tax › § 58.1-485.1. False claims of employment status; penalty

A. It shall be unlawful for any person to knowingly coerce or threaten an individual to falsely declare his employment status for the purpose of evading the withholding or payment of taxes required under this article.
B. It shall be unlawful for any person to knowingly and falsely claim an individual's employment status for the purpose of evading the withholding or payment of taxes required under this article.
C. In addition to any other penalties provided by law, any violation of this section is punishable as a Class 1 misdemeanor.
D. As used in this section "employment status" has the same meaning as defined by the United States Internal Revenue Code.
2006, c. 393.
2023 Code of Virginia › Title 58.1 - Taxation › Chapter 3 - Income Tax › § 58.1-486. Bad checks

If any check tendered for any amount due under this chapter is not paid by the bank on which it is drawn and such person fails to pay the Commissioner the amount due the Commonwealth within five days after the Commissioner has given him written notice by registered or certified mail or in person by an agent that such check was returned unpaid, the person by whom such check was tendered shall be guilty of a violation of § 18.2-182.1.
1984, c. 675; 1992, c. 763.
2023 Code of Virginia › Title 58.1 - Taxation › Chapter 3 - Income Tax › § 58.1-486.1. Definitions

"Owner" means the same as that term is defined in § 58.1-390.1.
"Pass-through entity" means the same as that term is defined in § 58.1-390.1.
"Taxable year" when used in regard to pass-through entities means the taxable year of the pass-through entity for federal income tax purposes. If a pass-through entity does not have a taxable year for federal tax purposes, its tax year for purposes of this article shall be the calendar year.
2007, c. 796.
2023 Code of Virginia › Title 58.1 - Taxation › Chapter 3 - Income Tax › § 58.1-486.3. Penalty

A. If any payment is not made in full when due, there shall be added to the entire tax or to any unpaid balance of the tax a penalty of six percent of the amount thereof, if the failure is for not more than one month, with an additional six percent for each additional month or fraction thereof during which such failure to pay continues, not exceeding 30 percent in the aggregate. The entire tax or any unpaid balance of the tax, together with such penalty and interest, shall immediately become collectible. Interest upon such tax or any unpaid balance of the tax and on the accrued penalty shall be added at a rate determined in accordance with § 58.1-15 from the date the tax or any unpaid balance of the tax was originally due until paid. In the case of an additional tax assessed by the Department, if the return was made in good faith and the understatement of the amount in the return was not due to any fault of the taxpayer, there shall be no penalty on the additional tax because of such understatement, but interest shall be added to the amount of the deficiency at a rate determined in accordance with § 58.1-15 from the time the return was required by law to be filed until paid.
B. In any month or fraction thereof for which the pass-through entity is subject to the penalty imposed under § 58.1-394.1 and the penalty under this section, the greater of the two penalties shall apply.
C. The penalty under this section shall not apply to any tax attributable to income that was included in a return filed pursuant to § 58.1-395.
2010, c. 120.
2023 Code of Virginia › Title 58.1 - Taxation › Chapter 3 - Income Tax › § 58.1-491.1. Payments estimated by certain members of the armed services

Notwithstanding any other provision of this article, estimated tax declarations and installment payments shall not be required of any individual qualifying for an extension under subdivision 1 or 2 of subsections F and G of § 58.1-344 during the period of such extension.
1991, cc. 346, 361; 1996, c. 401.
2023 Code of Virginia › Title 58.1 - Taxation › Chapter 3 - Income Tax › § 58.1-493. Declarations of estimated tax to be filed with commissioner of revenue of county or city

A. Every resident individual who is required by this article to file a declaration of estimated tax shall file his declaration with the commissioner of the revenue for the county or city in which he resides, and every nonresident individual who is required by this article to file a declaration of estimated tax shall file his declaration with the commissioner of the revenue for the county or city in which all or a part of his income from sources within the Commonwealth was derived. Forms for use by taxpayers in preparing their declarations of estimated tax shall be supplied by the Department to the commissioners of the revenue, who shall mail or deliver them to the taxpayers needing them so far as ascertainable not later than January 15 of each year. Failure of any taxpayer to receive any such form shall not relieve him of his obligation to file a declaration of estimated tax.
B. Every trust or estate which is required by this article to file a declaration of estimated tax shall file the declaration with the commissioner of the revenue for the county or city in which the fiduciary qualified or, if there has been no qualification in this state, in the city or county in which the fiduciary resides, does business or has an office or wherein the beneficiaries or any of them may reside.
Code 1950, § 58-151.24; 1962, c. 612; 1984, c. 675; 1987, c. 484.
2023 Code of Virginia › Title 58.1 - Taxation › Chapter 3 - Income Tax › § 58.1-494. Sheets or forms for recording declarations of estimated tax; recording

The commissioner of the revenue shall, for recording declarations of estimated tax, make out assessment sheets or forms daily as and when declarations are received, and shall continue so to make out such sheets or forms daily until all declarations so received by him have been entered on such sheets or forms. The commissioner of the revenue shall each day deliver the original and, if the Department so prescribes, one copy of each such sheet or form so made out that day to the treasurer of the county or city.
Code 1950, § 58-151.25; 1962, c. 612; 1968, c. 343; 1981, c. 96; 1984, c. 675.
2023 Code of Virginia › Title 58.1 - Taxation › Chapter 3 - Income Tax › § 58.1-495. Payment of estimated tax; notice of installment due; information to be transmitted to Department

The estimated tax with respect to which a declaration is required by this article shall be paid as specified in § 58.1-491 to the treasurer of the county or city with whose commissioner of the revenue the taxpayer files his declaration of estimated tax.
In every case the taxpayer may make his first payment to the treasurer of the county or city by attaching such payment to his declaration when he files it with the commissioner of the revenue. The commissioner of the revenue shall transmit all such payments to the treasurer at the time he delivers to the treasurer the sheets or forms mentioned in § 58.1-494 or, if memorandum assessments are made, at the time such memorandum assessments are certified to the treasurer.
Within ten days after the close of each month each county and city treasurer shall transmit to the Department in such form as the Department may prescribe such information and data as may be required by the Department with respect to all collections of estimated tax throughout the next preceding month.
Code 1950, § 58-151.26; 1962, c. 612; 1977, c. 396; 1979, c. 33; 1981, c. 96; 1982, c. 530; 1984, c. 675.
2023 Code of Virginia › Title 58.1 - Taxation › Chapter 3 - Income Tax › § 58.1-496. Willful failure or refusal to file declaration of estimated tax, or making false and fraudulent statement, a misdemeanor

Any person required under this article to file a declaration of estimated tax who willfully fails or refuses to file such declaration, at the time or times required by this article, and any person who, with intent to defraud the Commonwealth, makes any false statement in any such declaration, shall be guilty of a Class 1 misdemeanor.
Code 1950, § 58-151.27; 1962, c. 612; 1984, c. 675.
2023 Code of Virginia › Title 58.1 - Taxation › Chapter 3 - Income Tax › § 58.1-497. Section 58.1-306 applicable to declaration of estimated tax

Section 58.1-306 (relating to special instances in which an individual taxpayer may file an income tax return with the Department of Taxation) shall also apply to a declaration of estimated tax.
Code 1950, § 58-151.28; 1962, c. 612; 1971, Ex. Sess., c. 171; 1972, c. 565; 1984, c. 675.
2023 Code of Virginia › Title 58.1 - Taxation › Chapter 3 - Income Tax › § 58.1-498. Oaths or affirmations unnecessary on returns, declarations and reports; misdemeanor to file false return, declaration or report

No return, declaration, or report filed under this article need be verified by the oath or affirmation of the person or persons who are required by law to file the same. Any such person who willfully files any such return, declaration or report which he does not believe to be true and correct as to every material matter shall be guilty of a Class 1 misdemeanor.
Code 1950, § 58-151.30; 1962, c. 612; 1984, c. 675; 1996, c. 315.
2023 Code of Virginia › Title 58.1 - Taxation › Chapter 3 - Income Tax › § 58.1-500. Declarations of estimated income tax required; contents, etc.

A. Every corporation subject to taxation under this chapter shall make a declaration of estimated tax for the taxable year if its income tax imposed by this chapter, for such taxable year, reduced by any credits allowable against the tax, can reasonably be expected to exceed $1,000.
B. For purposes of this article, "estimated tax" means the amount which the corporation estimates as the amount of the income tax imposed by this chapter for the taxable year less the amount which the corporation estimates as the sum of any credits allowable against the tax.
C. The declaration shall contain such pertinent information as the Commissioner may by forms or regulations prescribe.
D. A corporation may make amendments of a declaration filed during the taxable year under regulations prescribed by the Tax Commissioner, not exceeding the number specified in § 58.1-501.
E. A corporation with a taxable year of less than twelve months shall make a declaration in accordance with regulations prescribed by the Tax Commissioner.
Code 1950, § 58-151.36; 1968, c. 14; 1970, c. 588; 1984, c. 675.
2023 Code of Virginia › Title 58.1 - Taxation › Chapter 3 - Income Tax › § 58.1-501. Time for filing declarations of estimated income tax

A. The declaration of estimated tax shall be filed as follows:
If the requirements of subsection A of § 58.1-500 are first met:
1. Before the first day of the fourth month of the taxable year, the declaration shall be filed on or before the fifteenth day of the fourth month of the taxable year.
2. After the last day of the third month and before the first day of the sixth month of the taxable year, the declaration shall be filed on or before the fifteenth day of the sixth month of the taxable year.
3. After the last day of the fifth month and before the first day of the ninth month of the taxable year, the declaration shall be filed on or before the fifteenth day of the ninth month of the taxable year.
4. After the last day of the eighth month and before the first day of the twelfth month of the taxable year, the declaration shall be filed on or before the fifteenth day of the twelfth month of the taxable year.
B. An amendment of a declaration may be filed in any interval between installment dates prescribed for the taxable year, but only one amendment may be filed in each such interval.
C. The application of this section to taxable years of less than twelve months shall be in accordance with regulations prescribed by the Tax Commissioner.
Code 1950, § 58-151.37; 1968, c. 14; 1984, c. 675.
2023 Code of Virginia › Title 58.1 - Taxation › Chapter 3 - Income Tax › § 58.1-503. Where declarations filed and how payments made; crediting or refunding overpayments

Every corporation required by this article to file a declaration of estimated income tax shall file the same with and make payment to the Department.
Code 1950, § 58-151.39; 1968, c. 14; 1971, Ex. Sess., c. 171; 1984, c. 675.
2023 Code of Virginia › Title 58.1 - Taxation › Chapter 3 - Income Tax › § 58.1-511. Definitions

For the purposes of the article:
"Interest in real property" means any right in real property, including access thereto or improvements thereon, or water, including but not limited to an open-space easement or conservation easement, provided such interest complies with the requirements of the U.S. Internal Revenue Code § 170 (h), partial interest, mineral right, remainder or future interest, or other interest or right in real property.
"Land" or "lands" means real property, with or without improvements thereon; rights-of-way, water and riparian rights; easements; privileges and all other rights or interests of any land or description in, relating to or connected with real property.
"Public or Private Conservation Agency" means any Virginia governmental body, or any private not-for-profit charitable corporation or trust authorized to do business in the Commonwealth and organized and operated for natural resources, land conservation or historic preservation purposes, and having tax-exempt status as a public charity under the U.S. Internal Revenue Code of 1986, as amended, and having the power to acquire, hold and maintain land and/or interests in land for such purposes.
1999, cc. 968, 983; 2005, c. 940.
2023 Code of Virginia › Title 58.1 - Taxation › Chapter 3 - Income Tax › § 58.1-512.1. Determination of fair market value of donation

A. Each appraisal estimating the value of any donation upon which credits are to be based shall employ proper methodology and be appropriately supported by market evidence. The Department of Taxation shall establish and make publicly available guidelines that incorporate, as applicable (without limitation), requirements under § 170(h) of the United States Internal Revenue Code of 1986, as amended, and the Uniform Standards of Professional Appraisal Practice (USPAP). The Department shall update the guidelines as necessary as determined by the Tax Commissioner. Such guidelines shall be exempt from the Administrative Process Act (§ 2.2-4000 et seq.) but the Department shall provide for adequate public participation, including adequate notice and opportunity to provide comments on the proposed guidelines.
B. For purposes of any appraisal for a conveyance under the provisions of this article, the value for any structures or other improvements to land shall be determined in accordance with law. For any otherwise qualified donation of a less-than-fee interest under this article, however, no more than 25% of the total credit allowed shall be for reductions in value to any structures and other improvements to land.
C. The fair market value of any property with respect to a qualified donation shall not exceed the value for the highest and best use (i) that is consistent with existing zoning requirements; (ii) for which the property was adaptable and needed or likely to be needed in the reasonably near future in the immediate area in which the property is located; (iii) that considers factors such as, by way of illustration and not limitation, slopes, flood plains, and soil conditions of the property; and (iv) for which existing roads serving the property are sufficient to support commercial or residential development in the event that is the highest and best use proposed for the property. Any appraisal submitted in support of an application for a credit under this article shall include an affidavit by the appraiser that to the best of his knowledge and belief the valuation complies with this section and shall set forth in the affidavit or refer to the specific portion of the appraisal setting forth the facts and basis for this knowledge and belief.
2006, Sp. Sess. I, cc. 4, 5.
2023 Code of Virginia › Title 58.1 - Taxation › Chapter 3 - Income Tax › § 58.1-520. (Contingent expiration) Definitions

As used in this article:
"Claimant agency" means any administrative unit of state, county, city or town government, including department, institution, commission, authority, or the office of Executive Secretary of the Supreme Court, any circuit or district court and the Internal Revenue Service. All state agencies and institutions shall participate in the setoff program.
"Debtor" means any individual having a delinquent debt or account with any claimant agency which obligation has not been satisfied by court order, set aside by court order, or discharged in bankruptcy.
"Delinquent debt" means any liquidated sum due and owing any claimant agency, or any restitution ordered paid to a clerk of the court pursuant to Title 19.2, including any amount of court costs or fines which have accrued through contract, subrogation, tort, operation of law, or any other legal theory regardless of whether there is an outstanding judgment for that sum which is legally collectible and for which a collection effort has been or is being made.
"Mailing date of notice" means the date of notice appearing thereon.
"Refund" means any individual's Virginia state or local income tax refund payable pursuant to § 58.1-309. This term also includes any refund belonging to a debtor resulting from the filing of a joint income tax return or a refund belonging to a debtor resulting from the filing of a return where married individuals have elected to file a combined return and separately state their Virginia taxable incomes under the provisions of subdivision B 2 of § 58.1-324.
Code 1950, § 58-19.7; 1981, c. 408; 1982, c. 621; 1983, c. 545; 1984, cc. 269, 675; 1986, c. 322; 1988, c. 544; 1989, cc. 77, 245; 1994, c. 197; 1996, cc. 363, 413; 2013, c. 766; 2020, c. 900.
2023 Code of Virginia › Title 58.1 - Taxation › Chapter 3 - Income Tax › § 58.1-520. (Contingent effective date) Definitions

As used in this article:
"Claimant agency" means any administrative unit of state, county, city or town government, including department, institution, commission, authority, or the office of Executive Secretary of the Supreme Court, any circuit or district court and the Internal Revenue Service. All state agencies and institutions shall participate in the setoff program.
"Debtor" means any individual having a delinquent debt or account with any claimant agency which obligation has not been satisfied by court order, set aside by court order, or discharged in bankruptcy.
"Delinquent debt" means any liquidated sum due and owing any claimant agency, or any restitution ordered paid to a clerk of the court pursuant to Title 19.2, including any amount of court costs or fines which have accrued through contract, subrogation, tort, operation of law, or any other legal theory regardless of whether there is an outstanding judgment for that sum which is legally collectible and for which a collection effort has been or is being made.
"Mailing date of notice" means the date of notice appearing thereon.
"Refund" means any individual's Virginia state or local income tax refund payable pursuant to § 58.1-309. This term also includes any refund belonging to a debtor resulting from the filing of a joint income tax return or a refund belonging to a debtor resulting from the filing of a return where married individuals have elected to file a combined return and separately state their Virginia taxable incomes under the provisions of subdivision B 2 of § 58.1-324.
Code 1950, § 58-19.7; 1981, c. 408; 1982, c. 621; 1983, c. 545; 1984, cc. 269, 675; 1986, c. 322; 1988, c. 544; 1989, cc. 77, 245; 1994, c. 197; 1996, cc. 363, 413; 2013, c. 766; 2020, c. 900.
2023 Code of Virginia › Title 58.1 - Taxation › Chapter 3 - Income Tax › § 58.1-521. Remedy additional; mandatory usage; obtaining identifying information

A. The collection remedy under this article is in addition to and not in substitution for any other remedy available by law.
B. Except for county, city or town governments, which may utilize the provisions of this article, all claimant agencies shall submit, for collection under the procedure established by this article, all delinquent debts which they are owed.
C. All claimant agencies, whenever possible, shall obtain the full name, social security number, address, and any other identifying information, required by rules promulgated by the Tax Commissioner for implementation of this article, from any person for whom the agencies provide any service or transact any business and who the claimant agencies can foresee may become a debtor under the terms of this article.
Code 1950, § 58-19.8; 1981, c. 408; 1983, c. 258; 1984, cc. 675, 720; 1986, c. 322.
2023 Code of Virginia › Title 58.1 - Taxation › Chapter 3 - Income Tax › § 58.1-522. Participation in setoff program not permitted in certain instances

A. If the claimant agency determines that the administrative cost, as defined in the rules promulgated by the Tax Commissioner, of utilizing this article will exceed the amount of the delinquent debt, then such claimant agency shall not participate in the setoff program below such levels determined economically infeasible.
B. Neither the Virginia Commonwealth University Health System Authority (the Authority) nor the University of Virginia Medical Center (the Center) shall participate in the setoff program for debts related to medical treatment unless the Authority or Center has undertaken all reasonable efforts to determine whether an individual with delinquent debt is eligible for Medicaid or other assistance under the Authority's or the Center's financial assistance policy.
Code 1950, § 58-19.9; 1981, c. 408; 1982, c. 621; 1984, cc. 675, 720; 2020, c. 577.
2023 Code of Virginia › Title 58.1 - Taxation › Chapter 3 - Income Tax › § 58.1-523. Department to aid in collection of sums due claimant agencies through setoff

Subject to the limitations contained in this article, the Department, upon request, shall render assistance in the collection of any delinquent account or debt owing to any claimant agency. This assistance shall be provided by setting off any refunds belonging to the debtor from the Department by the sum certified by the claimant agency as due and owing.
Code 1950, § 58-19.10; 1981, c. 408; 1982, c. 621; 1984, c. 675.
2023 Code of Virginia › Title 58.1 - Taxation › Chapter 3 - Income Tax › § 58.1-524. Notification of Department by claimant agency; action of Department

A. A claimant agency seeking to attempt collection of a delinquent debt through setoff shall notify the Department and supply information necessary to identify the debtor whose refund is sought to be setoff. Notification to the Department and the furnishing of identifying information must occur on or before a date specified by the Department. The claimant agency shall verify that the delinquent debt is valid before notifying the Department requesting setoff, and shall promptly notify the Department when subsequent payments or other events render all or a portion of the debt invalid.
B. The Department, upon receipt of notification, shall determine whether the debtor to the claimant agency is entitled to a refund from the Department. Upon determination by the Department that a debtor specified by the claimant agency qualifies for such a refund, the Department shall notify the claimant agency that a refund is pending, specify its sum, and indicate the debtor's address as listed on the tax return.
C. The Department, upon certification as hereinafter provided in this article, shall set off the certified debt against the refund to which the debtor would otherwise be entitled.
Code 1950, § 58-19.11; 1981, c. 408; 1982, c. 621; 1984, c. 675; 1996, cc. 363, 413.
2023 Code of Virginia › Title 58.1 - Taxation › Chapter 3 - Income Tax › § 58.1-525. Notification of intention to set off and right to hearing

A. The claimant agency, upon receipt of notification from the Department that a debtor is entitled to a refund, within ten days shall mail a written notification to the debtor at his or her last known address and shall send evidence of same in the manner required by rules promulgated by the Tax Commissioner to the Department of its assertion of rights to the refund or any part thereof. The notification shall inform the debtor of the claimant agency's intention to direct the Department to apply the refund or any portion thereof against the debt certified as due and owing.
B. The contents of the written notification to the debtor and the Department's notification of the setoff claim shall clearly set forth the basis for the claim to the refund, the intention to apply the refund against the debt to the claimant agency, the debtor's opportunity to give written notice of intent to contest the validity of the claim before the claimant agency within thirty days of the date of the mailing of the notice, the mailing address to which the application for a hearing must be sent, and the fact that failure to apply for a hearing in writing within the thirty-day period will be deemed a waiver of the opportunity to contest the claim causing final setoff by default.
C. The written application by the debtor for a hearing shall be effective upon mailing the application postage prepaid and properly addressed to the claimant agency.
Code 1950, § 58-19.12; 1981, c. 408; 1982, c. 621; 1984, c. 675; 1986, c. 322; 1996, cc. 363, 413.
2023 Code of Virginia › Title 58.1 - Taxation › Chapter 3 - Income Tax › § 58.1-526. Hearing procedure

A. If a claimant agency other than the Internal Revenue Service receives written application of the debtor's intention to contest at a hearing the claim upon which the intended setoff is based, it shall grant a hearing according to procedures established by that agency under its operating statutes to determine whether the claim is valid. Additionally, it shall be determined at the hearing whether the claimed sum asserted as due and owing is correct, and if not, an adjustment to the claim shall be made. A debtor of the Internal Revenue Service shall contest the claim only in accordance with federal law and procedures.
B. Pending final determination at the hearing of the validity of the debt asserted by the claimant agency, no action shall be taken in furtherance of collection through the setoff procedure allowed under this article.
C. No person hearing the debtor's application contesting the claimant agency's claim shall have been involved in the prior circumstances which have culminated in such dispute.
D. No issue may be considered at the hearing which has been previously litigated.
E. In the case of setoff arising out of delinquent local taxes, the scope of the hearing shall be limited to determining whether the setoff is a tax obligation that remains due and owing to the locality, and shall not address the underlying basis of the tax obligation.
Code 1950, § 58-19.13; 1981, c. 408; 1982, c. 621; 1984, cc. 675, 720; 1996, cc. 363, 413; 1997, c. 496.
2023 Code of Virginia › Title 58.1 - Taxation › Chapter 3 - Income Tax › § 58.1-527. Appeals from hearings

A. Within 30 days after the decision of the claimant agency upon a hearing pursuant to § 58.1-526 has become final, the debtor aggrieved thereby may secure judicial review thereof by commencing an action in the circuit court of the county or of the city, or if the city has no circuit court, then in the circuit court of the county in which such city is geographically located, in which the debtor resides or in which the principal office of the claimant agency is geographically located. In such action against the claimant agency for review of its decision, the claimant agency shall be named a defendant in a petition for judicial review. This section shall not be construed to confer jurisdiction on the circuit court to review questions of federal income tax law when the claimant agency is the Internal Revenue Service.
B. Such petition shall also state the grounds upon which review is sought and shall be served upon the head of the claimant agency or upon such person as the claimant agency may designate. With its answer, the claimant agency shall certify and file with the court all documents and papers and a transcript of all testimony taken in the matter, together with its findings of fact and decision therein. In any judicial proceedings under this article, the findings of the claimant agency as to the facts shall be sustained if supported by the evidence. Such actions and the questions so certified shall be heard in a summary manner at the earliest possible date. An appeal may be taken from the decision of such court to the Court of Appeals in conformity with the general law governing appeals in equity cases.
C. It shall not be necessary in any proceeding under this section to enter exceptions to the rulings of the claimant agency, and no bond shall be required upon an appeal to any court.
D. Notwithstanding the other provisions of this section, if the claimant agency is otherwise subject to the Administrative Process Act (§ 2.2-4000 et seq.), appeals of such agency's decision as it relates to the debtor shall be held in accordance with Article 5 (§ 2.2-4025 et seq.) of the Administrative Process Act.
Code 1950, § 58-19.14; 1981, c. 408; 1982, c. 621; 1984, c. 675; 1996, cc. 363, 413, 573; 2021, Sp. Sess. I, c. 489.
2023 Code of Virginia › Title 58.1 - Taxation › Chapter 3 - Income Tax › § 58.1-528. Certification of debt by claimant agency; finalization of setoff

A. Upon final determination of the debt due and owing the claimant agency or upon the debtor's default for failure to comply with § 58.1-525, the claimant agency shall within twenty days notify the Department to setoff the refund against the debt. If the claimant agency fails to notify the Department within twenty days, the Department shall no longer be obligated to hold the refund for setoff.
B. Upon receipt by the Department of a notification of final determination and setoff from the claimant agency, the Department shall finalize the setoff by transferring the proceeds collected for credit or payment in accordance with the provisions of § 58.1-532 and by refunding any remaining balance to the debtor as if setoff had not occurred.
Code 1950, § 58-19.15; 1981, c. 408; 1982, c. 621; 1984, c. 675; 1996, cc. 363, 413.
2023 Code of Virginia › Title 58.1 - Taxation › Chapter 3 - Income Tax › § 58.1-529. Notice of final setoff

Upon the finalization of setoff under the provisions of this article, the Department shall notify the debtor in writing of the action taken along with an accounting of the action taken on any refund. If there is an outstanding balance after setoff, the notice under this section shall accompany the balance when disbursed.
Code 1950, § 58-19.16; 1981, c. 408; 1984, c. 675.
2023 Code of Virginia › Title 58.1 - Taxation › Chapter 3 - Income Tax › § 58.1-530. (Contingent expiration -- see Editor's note) Priorities in claims to be setoff

Priority in multiple claims to refunds allowed to be setoff under the provisions of this article shall be in the order in time which a claimant agency has filed a written notice with the Department of its intention to effect collection through setoff under this article. However, claims filed by any court or administrative unit of state government shall have priority over claims filed by any county, city or town; and claims filed by any court, administrative unit of state government, county, city or town shall have priority over claims filed by the Internal Revenue Service. Notwithstanding the priority set forth above according to time of filing, the Department has priority over all other claimant agencies for collection by setoff whenever it is a competing agency for a refund.
Code 1950, § 58-19.17; 1981, c. 408; 1983, c. 545; 1984, c. 675; 1996, cc. 363, 413.
2023 Code of Virginia › Title 58.1 - Taxation › Chapter 3 - Income Tax › § 58.1-530. (Contingent effective date -- see Editor's note) Priorities in claims to be setoff

Priority in multiple claims to refunds allowed to be setoff under the provisions of this article shall be in the order in time which a claimant agency has filed a written notice with the Department of its intention to effect collection through setoff under this article. However, claims filed by any court or administrative unit of state government shall have priority over claims filed by any county, city or town; and claims filed by any court, administrative unit of state government, county, city or town shall have priority over claims filed by the Internal Revenue Service. Notwithstanding the priority set forth above according to time of filing, the Department has priority over all other claimant agencies for collection by setoff whenever it is a competing agency for a refund.
Code 1950, § 58-19.17; 1981, c. 408; 1983, c. 545; 1984, c. 675; 1996, cc. 363, 413.
2023 Code of Virginia › Title 58.1 - Taxation › Chapter 3 - Income Tax › § 58.1-531. Disposition of proceeds collected; Department's annual statement of costs

A. Upon effecting final setoffs, the Department shall periodically pay to the respective claimant agencies the proceeds collected on their behalf. However, with respect to amounts collected under this article for any county, city or town, the Department is authorized to deduct a sum, not in excess of twenty-five percent of the amount collected, to offset the cost of making such collection.
B. The Department shall provide the Governor and the chairmen of the House Committee on Finance, the Senate Committee on Finance and Appropriations, and the House Committee on Appropriations with an annual statement setting forth the Department's cost of administering this article.
Code 1950, § 58-19.18; 1981, c. 408; 1982, c. 621; 1983, c. 545; 1984, cc. 675, 720; 1988, c. 331; 1989, c. 77.
2023 Code of Virginia › Title 58.1 - Taxation › Chapter 3 - Income Tax › § 58.1-531.1. Errors in setoff program

If as a result of an error by the Department of Taxation or the claimant agency a taxpayer has his refund set off erroneously and is denied all or a portion of his income tax refund, interest shall be paid to the taxpayer at the rate provided in § 58.1-15 and shall accrue in the manner provided in § 58.1-1833.
1988, c. 331; 1989, c. 77.
2023 Code of Virginia › Title 58.1 - Taxation › Chapter 3 - Income Tax › § 58.1-532. Accounting to claimant agency; confidentiality; credit to debtor's obligation

A. Simultaneously with the transmittal of proceeds collected to a claimant agency, the Department shall provide the agency with an accounting of the setoffs finalized for which payment is being made. The accounting, whenever possible, shall include the full names of the debtors and the debtors' social security numbers. No federal tax return information shall be divulged by the Department under any circumstances.
B. Upon receipt by a claimant agency of proceeds collected on a claimant agency's behalf by the Department and an accounting of the proceeds as specified under this section, the claimant agency shall credit the debtor's obligation.
Code 1950, § 58-19.19; 1981, c. 408; 1982, c. 621; 1984, c. 675.
2023 Code of Virginia › Title 58.1 - Taxation › Chapter 3 - Income Tax › § 58.1-533. Confidentiality exemption; use of information obtained

A. Notwithstanding § 58.1-3 or any other provision of law prohibiting disclosure by the Department of the contents of taxpayer records or information and notwithstanding any confidentiality statute of any claimant agency, all information exchanged among the Department, claimant agency, and the debtor necessary to accomplish and effectuate the intent of this article shall be lawful.
B. The information obtained by a claimant agency from the Department in accordance with the exemption allowed by subsection A shall only be used by a claimant agency in the pursuit of its debt collection duties and practices and any person employed by, or formerly employed by, a claimant agency who discloses any such information for any other purpose, except as otherwise allowed by § 58.1-3, shall be penalized in accordance with the terms of that section.
Code 1950, § 58-19.20; 1981, c. 408; 1982, c. 621; 1984, c. 675.
2023 Code of Virginia › Title 58.1 - Taxation › Chapter 3 - Income Tax › § 58.1-535. Application of funds on deposit

A. In addition to the collection remedy provided in this article, if a claimant agency has on deposit any funds which are due to the debtor, the claimant agency may apply such funds to the payment of any delinquent debt which the debtor owes to the claimant agency, provided that the claimant agency first provides written notification to the debtor of its intent to apply the funds against the debt.
B. The contents of the written notification to the debtor shall clearly set forth the basis for the claim to the funds on deposit, the intention to apply the funds against the debt to the claimant agency, and the right of the debtor to contest the validity of the claim before the claimant agency.
C. If as the result of an error by the claimant agency a debtor is denied all or a portion of his funds under the provisions of this section, interest shall be paid by the claimant agency to the debtor at the overpayment rate provided in § 58.1-15 for the time such funds were denied, except that a county, city or town shall pay interest in the manner prescribed in § 58.1-3916 or § 58.1-3918.
D. As used in this section:
"Debtor" means any individual, business or group having a delinquent debt or account with any claimant agency which obligation has not been satisfied by court order, set aside by court order, or discharged in bankruptcy.
"Funds on deposit" means any funds of a debtor that a claimant agency may have in its possession, including overpayments of taxes and any funds due to a debtor arising from a contractual agreement with a claimant agency.
1988, cc. 563, 768; 1989, c. 77; 1999, c. 631.