Tax Type
Individual Income Tax
Description
Third party tax lien
Topic
Collection of Delinquent Tax
Date Issued
06-26-1985
June 26, 1985
Re: § 58.1-1821 Application; Income Tax for 1979, 1980, & 1981 § 58.1-1804 Third Party Tax Lien Claim of Exemption from Legal Process
Dear ****
You have responded to a notice of tax lien by claiming that your wages are exempt from process. You have not claimed that there is any federal or state law granting you an exemption from process. Instead, you have described the business losses suffered by your husband and shown that the Internal Revenue Service accepted your proposal to delay payment of delinquent federal tax for 1982.
At least part of the reason for acceptance by the I.R.S. of delayed payment for your 1982 federal tax liability is the fact that your 1984 loss can be carried back to 1982 and offset some of your tax liability for 1982. The loss cannot be carried back to the 1979 and 1980 taxable years and, therefore, will not affect two of the assessments included in the notice of tax lien.
An exemption from legal process to collect taxes can only be granted by law. There is no exemption solely because you are having difficulty paying your debts. The notice of remedies on the back of the notice of tax lien advised you of this fact.
Therefore, I have no alternative but to deny your claim that your wages are exempt from process.
Economic hardship is a factor considered by the department in negotiating payment schedules for delinquent taxes. However, efforts to contact you prior to issuing the notice of lien produced no response. After the notice of lien was issued, you contacted the ***** District Office to discuss your situation.
You should keep the ***** office advised of your circumstances so that arrangements can be made for payment of your tax liability without further legal process. In particular, if your 1984 return allows you to carry a net operating loss back to 1981, part of your Virginia tax liability may be reduced.
Sincerely,
W. H. Forst
Tax Commissioner
Re: § 58.1-1821 Application; Income Tax for 1979, 1980, & 1981 § 58.1-1804 Third Party Tax Lien Claim of Exemption from Legal Process
Dear ****
You have responded to a notice of tax lien by claiming that your wages are exempt from process. You have not claimed that there is any federal or state law granting you an exemption from process. Instead, you have described the business losses suffered by your husband and shown that the Internal Revenue Service accepted your proposal to delay payment of delinquent federal tax for 1982.
At least part of the reason for acceptance by the I.R.S. of delayed payment for your 1982 federal tax liability is the fact that your 1984 loss can be carried back to 1982 and offset some of your tax liability for 1982. The loss cannot be carried back to the 1979 and 1980 taxable years and, therefore, will not affect two of the assessments included in the notice of tax lien.
An exemption from legal process to collect taxes can only be granted by law. There is no exemption solely because you are having difficulty paying your debts. The notice of remedies on the back of the notice of tax lien advised you of this fact.
Therefore, I have no alternative but to deny your claim that your wages are exempt from process.
Economic hardship is a factor considered by the department in negotiating payment schedules for delinquent taxes. However, efforts to contact you prior to issuing the notice of lien produced no response. After the notice of lien was issued, you contacted the ***** District Office to discuss your situation.
You should keep the ***** office advised of your circumstances so that arrangements can be made for payment of your tax liability without further legal process. In particular, if your 1984 return allows you to carry a net operating loss back to 1981, part of your Virginia tax liability may be reduced.
Sincerely,
W. H. Forst
Tax Commissioner
Rulings of the Tax Commissioner