WV State Tax Department - Compliance Division

Forced Collection Actions. . .

We understand that most people truly want to pay the taxes that they owe. The first priority of the Compliance Division is to work with you to meet your tax obligations. However, in cases where an effort is not being made to “get right” with the State Tax Department, State law gives the Department broad power to enforce tax laws through forced collection actions. These actions include the issuance of a tax lien, the levy of personal property, garnishment of wages, revocation of your business registration certificate, or the seizure of property.

Notice of Tax Lien...

A Notice of Tax Lien is a claim for taxes owed the State and is recorded in your county courthouse. After a lien is recorded, it is a matter of public record. Credit reporting agencies routinely check courthouse records and the lien may be added to your credit report. A lien also attaches to your property. The filing of a tax lien is the first step in forced collection actions.

Levy...

A levy is the seizure of money in the possession of a third party that belongs to a delinquent taxpayer. A levy is issued for tax liability that has been established by the recording of a tax lien, authorized by a Distress Warrant, and after efforts to encourage voluntary payment have failed. Bank accounts, certificates of deposit, notes payable, rents payable, the cash value or proceeds from insurance, Federal or State tax refunds, or any other money owed to a taxpayer can be seized to satisfy the liability.

Wage Garnishment...

A wage garnishment is another kind of levy. Your employer can be served with a Notice of Levy. Money will then be withheld from your wages and paid to the State to satisfy your tax liability. A schedule of exemptions is attached to the levy form to aid your employer in determining the amount to be withheld. Generally, you will be allowed $154.50 each week as a personal exemption and $25.00 per week for each person who qualifies as a dependant.

Revocation of Business License...

When a business fails to respond to our efforts to help them meet their tax obligations, then a certified notice of our intent to revoke their business license may be mailed. A business then has the right to a hearing to present their reasons why the license should not be revoked. Engaging in business for more that 30 days after a business license has been revoked is a misdemeanor offense punishable by a fine of $100.00 per day.

Seizure of Property...

When a taxpayer continues to resist our efforts to help bring them into compliance, the State may seize the property of the taxpayer. The seized property can be sold at auction and the proceeds of the sale applied to the liability of the taxpayer. Prior to this action, the taxpayer would have been afforded many opportunities to settle the liability. A taxpayer in this situation would receive certified notice of our intent to seize and sell property.

The Compliance Division is always ready to work with you to avoid any of these forced collection actions. Please contact us today and let us show you how we can help!

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	Forced Collection Actions. . . We understand that most people truly want to pay the taxes that they owe. The first priority of the Compliance Division is to work with you to meet your tax obligations. However, in cases where an effort is not being made to “get right” with the State Tax Department, State law gives the Department broad power to enforce tax laws through forced collection actions. These actions include the issuance of a tax lien, the levy of personal property, garnishment of wages, revocation of your business registration certificate, or the seizure of property. Notice of Tax Lien... A Notice of Tax Lien is a claim for taxes owed the State and is recorded in your county courthouse. After a lien is recorded, it is a matter of public record. Credit reporting agencies routinely check courthouse records and the lien may be added to your credit report. A lien also attaches to your property. The filing of a tax lien is the first step in forced collection actions. Levy... A levy is the seizure of money in the possession of a third party that belongs to a delinquent taxpayer. A levy is issued for tax liability that has been established by the recording of a tax lien, authorized by a Distress Warrant, and after efforts to encourage voluntary payment have failed. Bank accounts, certificates of deposit, notes payable, rents payable, the cash value or proceeds from insurance, Federal or State tax refunds, or any other money owed to a taxpayer can be seized to satisfy the liability. Wage Garnishment... A wage garnishment is another kind of levy. Your employer can be served with a Notice of Levy. Money will then be withheld from your wages and paid to the State to satisfy your tax liability. A schedule of exemptions is attached to the levy form to aid your employer in determining the amount to be withheld. Generally, you will be allowed $154.50 each week as a personal exemption and $25.00 per week for each person who qualifies as a dependant. Revocation of Business License... When a business fails to respond to our efforts to help them meet their tax obligations, then a certified notice of our intent to revoke their business license may be mailed. A business then has the right to a hearing to present their reasons why the license should not be revoked. Engaging in business for more that 30 days after a business license has been revoked is a misdemeanor offense punishable by a fine of $100.00 per day. Seizure of Property... When a taxpayer continues to resist our efforts to help bring them into compliance, the State may seize the property of the taxpayer. The seized property can be sold at auction and the proceeds of the sale applied to the liability of the taxpayer. Prior to this action, the taxpayer would have been afforded many opportunities to settle the liability. A taxpayer in this situation would receive certified notice of our intent to seize and sell property. The Compliance Division is always ready to work with you to avoid any of these forced collection actions. Please contact us today and let us show you how we can help!
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