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Barbara, Enrolled Agent
Category: Tax
Satisfied Customers: 3362
Experience:  18+ years of experience in tax preparation; 25+ years of experience as a real estate/corporate paralegal.
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Am currently on installment plan state taxes. Failed. To

Customer Question

Am currently on installment plan for va state taxes. Failed. To file 12 and 13 year returns. Received a letter yesterday forcthe returns. I am concerned as I will owe around 4500 for both years. I want to know if my. Payment agreement will be canceled and how to best navigate concerned about levy or lien. No lectures please trying to do the right thing
Submitted: 1 year ago.
Category: Tax
Expert:  Robin D. replied 1 year ago.


No lectures from me. Stuff happens.

First get those returns filed. ASAP.

By not filing yes, your payment plan is in default with VA. VA will place a lien on property which holds it to secure payment if you do not go through with payment.

It is going to be up to the agent you speak with on if the state will let you do an installment agreement again. They could consolidate the payments but again, unless you have a good reason for not complying they will not. I know you probably will ask "what's a good reason". Something beyond your control, sickness, death in immediate family, whatever the reason you really had for not filing.

The state may levy your wages if you are an employee. Although in VA most creditors cannot get a wage garnishment order until they have first obtained a court judgment stating that you owe the creditor money that does not apply to state taxes owed.

The best way to navigate this is file the returns and call to request payment arrangement as soon as you can.

Expert:  Barbara replied 1 year ago.

Different expert here - my name is ***** ***** please allow me to provide you with information you will find helpful and which will put your mind at ease.

The situation is not as hopeless as you may think.

Since the letter you received from VA is requesting the tax returns but has not mentioned that your payment plan is in default, you are NOT in default yet. However, once you file your 2012 and 2013 tax returns and have tax liability, your current payment plan will then default. Once you receive notification from VA that your payment plan has defaulted, call them immediately to consolidate your tax liability into one payment plan. The states are like the IRS--they will work with you to reinstate your payment plan because they want to be paid.

I recently had a payment plan reinstated for a client who had defaulted twice on his payment plan with CA.

My best advice is to file your 2012 and 2013 tax returns as soon as possible so they can process them, and you will know what your outstanding tax liability is.

Please let me know if I can assist you further.

Thank you and best regards,


Expert:  Barbara replied 1 year ago.

Just following up with you to see if you have any other questions or concerns. If so, please come back to me here at your convenience, and I will be happy to assist you. If not, please take a moment to rate my answer since that is the only way I receive credit for answering you and alerts Just Answer to compensate me for a portion of the fee you previously paid.

Best regards,