Why did our business receive a vendor offset notice?

This notice was sent to the business (and Authorized Agent as applicable) because of unpaid debts the business has with Virginia Tax.

Can we send payment to avoid this action even though it is close to the cutoff date in the notice?

It is recommended payment be made as soon as possible, as delays may not prevent this action. You may use QuickPay or follow the payment instructions on the notice. Contact our Collections Department to set up a payment plan at 804.367.8045.

How will we know if our federal vendor payment was intercepted to pay a state tax debt?

The U.S. Department of Treasury will notify your business when a federal vendor payment offset has occurred. This notification will include the amount of the offset, the state to which the offset was paid, and a contact within that state to handle concerns or questions about the debt which prompted the federal vendor payment offset. If you have questions for the U.S. Department of Treasury please contact 800.304.3107.

This business is closed. What needs to be done to resolve this issue?

Although the business may be closed, the debt may still be valid and eligible for the U.S. Treasury offset program. Send us supporting documentation to verify the business is closed and if applicable also provide documentation to show the tax debt is not owed. Complete Virginia Form R-3 and/or file the appropriate Virginia tax returns for outstanding tax periods where necessary. Send the R-3 form to:

Virginia Department of Taxation
P.O. Box 1114
Richmond, VA 23218-1114
or fax to 804.367.2603.

Why did our business receive this notice when our business is already on a payment plan?

If the payment plan defaults for any reason, the debt may become eligible for the U.S. Treasury vendor offset program. Contact Virginia Tax at 804.367.8045 to speak to a representative regarding payment plans.

This business is in bankruptcy,what needs to be done to stop this action?

We will not submit debts to the U.S. Treasury for businesses under bankruptcy protection if proof of bankruptcy is submitted in a timely manner. It is recommended that proof of bankruptcy, including case number, filing date, and the name of the court in which the claim was filed, be provided to the address shown on the notice within 45 days of the date of the notice to avoid this action.

Our business has already paid this state debt, how do we stop the vendor offset?

To avoid this action, fax proof of payment to 804.254.6111 within 30 days of the date of the notice to provide time to resolve the offset.