{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/58.1-3994.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/58.1-3994.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/58.1-3994.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/58.1-3994.html"}],"law_id":84655,"edition_id":1,"section_id":84655,"structure_id":15377,"section_number":"58.1-3994","catch_line":"Offers in compromise with respect to local taxes","history":"2004, c. 526.","full_text":"A\n\nNotwithstanding any other provision of law, the commissioner of the revenue or other official responsible for the assessment of any local tax appealed pursuant to § 58.1-3703.1 or § 58.1-3983.1 may, in his sole discretion, compromise and settle any disputed assessment of taxes prior to the time that such assessment is no longer subject to administrative or judicial review pursuant to applicable law if the commissioner or other official responsible for assessment determines that there is substantial doubt under applicable law, regulations, or guidelines as to the taxpayer’s liability for such taxes.B\n\nNotwithstanding any other provision of law, the treasurer or other official responsible for the collection of any local tax imposed pursuant to this title may, with the consent of the governing body or its designee, compromise and settle the amount due and payable when the treasurer or other official determines that the collection of the entire amount due and owing is in substantial doubt and the best interests of the locality will be served by such compromise. Whenever a tax otherwise due and owing is compromised pursuant to the provisions of this subsection, the difference between the amount of tax then due and owing, and the amount of tax paid pursuant to such compromise, shall be treated for the purposes of § 58.1-3921 in the same fashion as a tax rendered legally uncollectible by reason of the application of the United States Bankruptcy Code.C\n\nAny offer in compromise submitted to an official responsible for the assessment or collection of local taxes shall be made in writing and shall be deemed accepted only when the taxpayer is notified in writing of the acceptance by the responsible official.D\n\nWhenever a compromise and settlement is made pursuant to the provisions of this section, the responsible official shall make a complete record of the case, including: (i) the tax assessed; (ii) audit findings, if any; (iii) the taxpayer’s grounds for dispute or contest together with all evidences thereof; (iv) factors calling collectibility into substantial doubt; (v) any nonprivileged reports or recommendations made with respect to the liability of the taxpayer, the requirements of effective tax administration considered, and\/or the collectibility of taxes due; and (vi) the amount assessed or accepted and the terms and conditions attendant to settlement or compromise, with respect to the liability in question.E\n\nThe treasurer or other official charged with collection of taxes may deposit into the treasury of the county, city or town any and all payments submitted with offers in compromise, unless the taxpayer specifically, clearly and conspicuously directs otherwise in writing at the time the offer in compromise is submitted to the responsible official. For the purposes of this subsection, no restrictive endorsement or other notation upon a check or other payment instrument shall constitute clear and conspicuous notice of a direction not to deposit.F\n\nUpon acceptance of an offer in compromise by the responsible local official with respect to a tax liability, the matter thereafter may not be reopened except upon a showing of fraud, malfeasance or misrepresentation of a material fact.","order_by":null,"text":{"0":{"id":303422,"text":"Notwithstanding any other provision of law, the commissioner of the revenue or other official responsible for the assessment of any local tax appealed pursuant to § 58.1-3703.1 or § 58.1-3983.1 may, in his sole discretion, compromise and settle any disputed assessment of taxes prior to the time that such assessment is no longer subject to administrative or judicial review pursuant to applicable law if the commissioner or other official responsible for assessment determines that there is substantial doubt under applicable law, regulations, or guidelines as to the taxpayer’s liability for such taxes.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":303423,"text":"Notwithstanding any other provision of law, the treasurer or other official responsible for the collection of any local tax imposed pursuant to this title may, with the consent of the governing body or its designee, compromise and settle the amount due and payable when the treasurer or other official determines that the collection of the entire amount due and owing is in substantial doubt and the best interests of the locality will be served by such compromise. Whenever a tax otherwise due and owing is compromised pursuant to the provisions of this subsection, the difference between the amount of tax then due and owing, and the amount of tax paid pursuant to such compromise, shall be treated for the purposes of § 58.1-3921 in the same fashion as a tax rendered legally uncollectible by reason of the application of the United States Bankruptcy Code.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"C"},"2":{"id":303424,"text":"Any offer in compromise submitted to an official responsible for the assessment or collection of local taxes shall be made in writing and shall be deemed accepted only when the taxpayer is notified in writing of the acceptance by the responsible official.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B","next_prefix":"D"},"3":{"id":303425,"text":"Whenever a compromise and settlement is made pursuant to the provisions of this section, the responsible official shall make a complete record of the case, including: (i) the tax assessed; (ii) audit findings, if any; (iii) the taxpayer’s grounds for dispute or contest together with all evidences thereof; (iv) factors calling collectibility into substantial doubt; (v) any nonprivileged reports or recommendations made with respect to the liability of the taxpayer, the requirements of effective tax administration considered, and\/or the collectibility of taxes due; and (vi) the amount assessed or accepted and the terms and conditions attendant to settlement or compromise, with respect to the liability in question.","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C","next_prefix":"E"},"4":{"id":303426,"text":"The treasurer or other official charged with collection of taxes may deposit into the treasury of the county, city or town any and all payments submitted with offers in compromise, unless the taxpayer specifically, clearly and conspicuously directs otherwise in writing at the time the offer in compromise is submitted to the responsible official. For the purposes of this subsection, no restrictive endorsement or other notation upon a check or other payment instrument shall constitute clear and conspicuous notice of a direction not to deposit.","type":"section","prefixes":["E"],"prefix":"E","entire_prefix":"E","prefix_anchor":"E","level":1,"prior_prefix":"D","next_prefix":"F"},"5":{"id":303427,"text":"Upon acceptance of an offer in compromise by the responsible local official with respect to a tax liability, the matter thereafter may not be reopened except upon a showing of fraud, malfeasance or misrepresentation of a material fact.","type":"section","prefixes":["F"],"prefix":"F","entire_prefix":"F","prefix_anchor":"F","level":1,"prior_prefix":"E"}},"ancestry":[{"id":15377,"edition_id":1,"name":"Correction of Assessments, Remedies and Refunds","identifier":"5","label":"article","depth":4,"order_by":1,"parent_id":13043,"metadata":{},"date_created":"2026-06-26 03:54:27","date_modified":"2026-06-26 03:54:27","permalink":{"id":259003,"object_type":"structure","relational_id":15377,"identifier":"5","token":"58.1\/III\/39\/5","url":"\/58.1\/III\/39\/5\/","edition_id":1,"permalink":0,"preferred":1}},{"id":13043,"edition_id":1,"name":"Enforcement, Collection, Refunds, Remedies and Review of Local Taxes","identifier":"39","label":"chapter","depth":3,"order_by":1,"parent_id":12704,"metadata":{},"date_created":"2026-06-26 03:44:10","date_modified":"2026-06-26 03:44:10","permalink":{"id":258657,"object_type":"structure","relational_id":13043,"identifier":"39","token":"58.1\/III\/39","url":"\/58.1\/III\/39\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12704,"edition_id":1,"name":"Local Taxes","identifier":"III","label":"subtitle","depth":2,"order_by":1,"parent_id":12703,"metadata":{},"date_created":"2026-06-26 03:43:49","date_modified":"2026-06-26 03:43:49","permalink":{"id":256459,"object_type":"structure","relational_id":12704,"identifier":"III","token":"58.1\/III","url":"\/58.1\/III\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12703,"edition_id":1,"name":"Taxation","identifier":"58.1","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:43:49","date_modified":"2026-06-26 03:43:49","permalink":{"id":251959,"object_type":"structure","relational_id":12703,"identifier":"58.1","token":"58.1","url":"\/58.1\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":64276,"structure_id":15377,"section_number":"58.1-3980","catch_line":"Application to commissioner of the revenue or other official for correction","url":"\/58.1-3980\/","token":"58.1\/III\/39\/5\/58.1-3980","metadata":false},{"id":60797,"structure_id":15377,"section_number":"58.1-3981","catch_line":"Correction by commissioner or other official performing his duties","url":"\/58.1-3981\/","token":"58.1\/III\/39\/5\/58.1-3981","metadata":false},{"id":81054,"structure_id":15377,"section_number":"58.1-3982","catch_line":"Appeal by locality","url":"\/58.1-3982\/","token":"58.1\/III\/39\/5\/58.1-3982","metadata":false},{"id":81647,"structure_id":15377,"section_number":"58.1-3983","catch_line":"Remedy not to affect right to apply to court","url":"\/58.1-3983\/","token":"58.1\/III\/39\/5\/58.1-3983","metadata":false},{"id":61894,"structure_id":15377,"section_number":"58.1-3983.1","catch_line":"Appeals and rulings of local taxes","url":"\/58.1-3983.1\/","token":"58.1\/III\/39\/5\/58.1-3983.1","metadata":false},{"id":66459,"structure_id":15377,"section_number":"58.1-3984","catch_line":"Application to court to correct erroneous assessments of local levies generally","url":"\/58.1-3984\/","token":"58.1\/III\/39\/5\/58.1-3984","metadata":false},{"id":74227,"structure_id":15377,"section_number":"58.1-3985","catch_line":"Section 58.1-3984 not applicable to applications for correction of assessments for local improvements","url":"\/58.1-3985\/","token":"58.1\/III\/39\/5\/58.1-3985","metadata":false},{"id":75690,"structure_id":15377,"section_number":"58.1-3986","catch_line":"Correction of double assessments; time for filing","url":"\/58.1-3986\/","token":"58.1\/III\/39\/5\/58.1-3986","metadata":false},{"id":87131,"structure_id":15377,"section_number":"58.1-3987","catch_line":"Action of court","url":"\/58.1-3987\/","token":"58.1\/III\/39\/5\/58.1-3987","metadata":false},{"id":82649,"structure_id":15377,"section_number":"58.1-3988","catch_line":"Effect of order","url":"\/58.1-3988\/","token":"58.1\/III\/39\/5\/58.1-3988","metadata":false},{"id":86629,"structure_id":15377,"section_number":"58.1-3989","catch_line":"Remedy applicable upon general reassessments; all changes to be certified to commissioners","url":"\/58.1-3989\/","token":"58.1\/III\/39\/5\/58.1-3989","metadata":false},{"id":76480,"structure_id":15377,"section_number":"58.1-3990","catch_line":"Refunds of local taxes erroneously paid","url":"\/58.1-3990\/","token":"58.1\/III\/39\/5\/58.1-3990","metadata":false},{"id":58559,"structure_id":15377,"section_number":"58.1-3991","catch_line":"Repealed","url":"\/58.1-3991\/","token":"58.1\/III\/39\/5\/58.1-3991","metadata":false},{"id":81841,"structure_id":15377,"section_number":"58.1-3992","catch_line":"Appeal","url":"\/58.1-3992\/","token":"58.1\/III\/39\/5\/58.1-3992","metadata":false},{"id":81500,"structure_id":15377,"section_number":"58.1-3993","catch_line":"No injunctions against assessment or collection of taxes","url":"\/58.1-3993\/","token":"58.1\/III\/39\/5\/58.1-3993","metadata":false},{"id":84655,"structure_id":15377,"section_number":"58.1-3994","catch_line":"Offers in compromise with respect to local taxes","url":"\/58.1-3994\/","token":"58.1\/III\/39\/5\/58.1-3994","metadata":false},{"id":84149,"structure_id":15377,"section_number":"58.1-3995","catch_line":"Effect of application for correction of assessment or appeal upon applications for local permits and licenses","url":"\/58.1-3995\/","token":"58.1\/III\/39\/5\/58.1-3995","metadata":false}],"previous_section":{"id":81500,"structure_id":15377,"section_number":"58.1-3993","catch_line":"No injunctions against assessment or collection of taxes","url":"\/58.1-3993\/","token":"58.1\/III\/39\/5\/58.1-3993","metadata":false},"next_section":{"id":84149,"structure_id":15377,"section_number":"58.1-3995","catch_line":"Effect of application for correction of assessment or appeal upon applications for local permits and licenses","url":"\/58.1-3995\/","token":"58.1\/III\/39\/5\/58.1-3995","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/58.1-3994\/","history_text":"

This law was first created in 2004. The record of its establishment is cataloged in chapter 526<\/a> of that year\u2019s edition of \u201cActs of Assembly,\u201d the annual state publication listing all changes made to the Code of Virginia in that year.<\/p>","references":[{"id":68599,"section_number":"58.1-3212","catch_line":"Local restrictions and exemptions","order_by":null,"url":"\/58.1-3212\/"}],"refers_to":[{"id":73408,"section_number":"58.1-3703.1","catch_line":"Uniform ordinance provisions","order_by":null,"url":"\/58.1-3703.1\/"},{"id":86455,"section_number":"58.1-3921","catch_line":"Treasurer to make out lists of uncollectable taxes and delinquents","order_by":null,"url":"\/58.1-3921\/"},{"id":61894,"section_number":"58.1-3983.1","catch_line":"Appeals and rulings of local taxes","order_by":null,"url":"\/58.1-3983.1\/"}],"permalink":{"id":259065,"object_type":"law","relational_id":84655,"identifier":"58.1-3994","token":"58.1\/III\/39\/5\/58.1-3994","url":"\/58.1-3994\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/58.1-3994\/","token":"58.1\/III\/39\/5\/58.1-3994","dublin_core":{"Title":"Offers in compromise with respect to local taxes","Type":"Text","Format":"text\/html","Identifier":"\u00a7 58.1-3994","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> Notwithstanding any other provision of law<\/span>, the commissioner of the revenue or other official responsible for the assessment of any local tax appealed pursuant to § 58.1-3703.1<\/a> or § 58.1-3983.1<\/a> may, in his sole discretion, compromise and settle any disputed assessment of taxes prior to the time that such assessment is no longer subject to administrative or judicial review pursuant to applicable law<\/span> if the commissioner or other official responsible for assessment determines that there is substantial doubt under applicable law<\/span>, regulations, or guidelines as to the taxpayer<\/span>’s liability for such taxes. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> Notwithstanding any other provision of law<\/span>, the treasurer or other official responsible for the collection of any local tax imposed pursuant to this title may, with the consent of the governing body or its designee, compromise and settle the amount due and payable when the treasurer or other official determines that the collection of the entire amount due and owing is in substantial doubt and the best interests of the locality will be served by such compromise. Whenever a tax otherwise due and owing is compromised pursuant to the provisions of this subsection, the difference between the amount of tax then due and owing, and the amount of tax paid pursuant to such compromise, shall be treated for the purposes of § 58.1-3921<\/a> in the same fashion as a tax rendered legally uncollectible by reason of the application of the United States Bankruptcy Code<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> Any offer in compromise submitted to an official responsible for the assessment or collection of local taxes shall be made in writing and shall be deemed accepted only when the taxpayer<\/span> is notified in writing of the acceptance by the responsible official. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

D.<\/span> Whenever a compromise and settlement<\/span> is made pursuant to the provisions of this section, the responsible official shall make a complete record of the case, including: (i) the tax assessed; (ii) audit findings<\/span>, if any; (iii) the taxpayer<\/span>’s grounds for dispute or contest together with all evidences<\/span> thereof; (iv) factors calling collectibility into substantial doubt; (v) any nonprivileged reports or recommendations made with respect to the liability of the taxpayer<\/span>, the requirements of effective tax administration considered, and\/or the collectibility of taxes due; and (vi) the amount assessed or accepted and the terms and conditions attendant to settlement<\/span> or compromise, with respect to the liability in question. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

E.<\/span> The treasurer or other official charged with collection of taxes may deposit into the treasury of the county, city or town any and all payments submitted with offers in compromise, unless the taxpayer<\/span> specifically, clearly and conspicuously directs otherwise in writing at the time the offer in compromise is submitted to the responsible official. For the purposes of this subsection, no restrictive endorsement or other notation upon a check or other payment instrument shall constitute clear and conspicuous notice of a direction not to deposit. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

F.<\/span> Upon acceptance of an offer in compromise by the responsible local official with respect to a tax liability, the matter thereafter may not be reopened except upon a showing of fraud<\/span>, malfeasance or misrepresentation of a material<\/span> fact<\/span>. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nOFFERS IN COMPROMISE WITH RESPECT TO LOCAL TAXES (\u00a7 58.1-3994)\n\nA. Notwithstanding any other provision of law, the commissioner of the revenue\nor other official responsible for the assessment of any local tax appealed\npursuant to § 58.1-3703.1 or § 58.1-3983.1 may, in his sole\ndiscretion, compromise and settle any disputed assessment of taxes prior to the\ntime that such assessment is no longer subject to administrative or judicial\nreview pursuant to applicable law if the commissioner or other official\nresponsible for assessment determines that there is substantial doubt under\napplicable law, regulations, or guidelines as to the taxpayer’s liability\nfor such taxes.\n\nB. Notwithstanding any other provision of law, the treasurer or other official\nresponsible for the collection of any local tax imposed pursuant to this title\nmay, with the consent of the governing body or its designee, compromise and\nsettle the amount due and payable when the treasurer or other official\ndetermines that the collection of the entire amount due and owing is in\nsubstantial doubt and the best interests of the locality will be served by such\ncompromise. Whenever a tax otherwise due and owing is compromised pursuant to\nthe provisions of this subsection, the difference between the amount of tax then\ndue and owing, and the amount of tax paid pursuant to such compromise, shall be\ntreated for the purposes of § 58.1-3921 in the same fashion as a tax\nrendered legally uncollectible by reason of the application of the United States\nBankruptcy Code.\n\nC. Any offer in compromise submitted to an official responsible for the\nassessment or collection of local taxes shall be made in writing and shall be\ndeemed accepted only when the taxpayer is notified in writing of the acceptance\nby the responsible official.\n\nD. Whenever a compromise and settlement is made pursuant to the provisions of\nthis section, the responsible official shall make a complete record of the case,\nincluding: (i) the tax assessed; (ii) audit findings, if any; (iii) the\ntaxpayer’s grounds for dispute or contest together with all evidences\nthereof; (iv) factors calling collectibility into substantial doubt; (v) any\nnonprivileged reports or recommendations made with respect to the liability of\nthe taxpayer, the requirements of effective tax administration considered,\nand\/or the collectibility of taxes due; and (vi) the amount assessed or accepted\nand the terms and conditions attendant to settlement or compromise, with respect\nto the liability in question.\n\nE. The treasurer or other official charged with collection of taxes may deposit\ninto the treasury of the county, city or town any and all payments submitted\nwith offers in compromise, unless the taxpayer specifically, clearly and\nconspicuously directs otherwise in writing at the time the offer in compromise\nis submitted to the responsible official. For the purposes of this subsection,\nno restrictive endorsement or other notation upon a check or other payment\ninstrument shall constitute clear and conspicuous notice of a direction not to\ndeposit.\n\nF. Upon acceptance of an offer in compromise by the responsible local official\nwith respect to a tax liability, the matter thereafter may not be reopened\nexcept upon a showing of fraud, malfeasance or misrepresentation of a material\nfact.\n\nHISTORY: 2004, c. 526.","edition":{"id":1,"name":"2025","slug":"2025","date_created":"2026-06-21 22:39:22","date_modified":"2026-06-21 22:39:22","current":1,"order_by":1,"last_import":null}}