I owe 3 years of state tax. I went under a payment plan but later on, I was not able to afford it and stopped paying. I am a server. I get paid mostly on tips and my hourly pay is $2.13. My checks are always zero, but VA placed a levy towards my wages.
I am about to get an hourly job, but I would like the levy to stop. I called VA Department of Taxation and I was told I can’t be on a payment plan because of my levy.
Also whatever amount VA deducts from my paycheck each month is not reflected towards what I owe. It stays the same amount when I check online. What can I do in regards to stopping the levy and see that my levy deduction has been applied towards what I owe?
According to the State of Virginia, you would not be eligible for a payment plan if any of the following are true:
- Padlock, revocation, criminal warrant, or bond
- Tax lien issued to an employer or bank, bankruptcy, or assignment to an outside collection agency or a Virginia Tax field agent – Source
State and federal income taxes that are past due may be eligible to be discharged in a consumer bankruptcy. Generally, if the taxes due are more than three years old and tax returns were filed, there is a chance.
You find a good local bankruptcy attorney and have a free discussion about what bankruptcy would mean for you. Bankruptcy is the fastest way to get a fresh start for the least amount of money.
Talking to a local bankruptcy attorney who is licensed in your state is a reasonable thing to do if the State is unwilling to cancel the levy. Of course, when you change employers the levy will stop but I’m sure they will track you down and institute it again.
Regarding an accounting of the funds already collected, you should log in to your account with the State of Virginia and see how they are applying your payments. Additionally, you can call 804-367-8045.