2006 Code of Virginia § 58.1-1802.1 - Period of limitations on collection; accrual of interest and penalty

58.1-1802.1. Period of limitations on collection; accrual of interest andpenalty.

A. Where the assessment of any tax imposed by this subtitle has been madewithin the period of limitation properly applicable thereto, such tax may becollected by levy, by a proceeding in court, or by any other means availableto the Tax Commissioner under the laws of the Commonwealth, but only if suchcollection effort is made or instituted within twenty years from the date ofthe assessment of such tax. Prior to the expiration of any period forcollection, the period may be extended by a written agreement between the TaxCommissioner and the taxpayer, and subsequent written agreements may likewiseextend the period previously agreed upon. The period of limitations providedin this subsection during which a tax may be collected shall not apply toexecutions, levy or other actions to enforce a lien created before theexpiration of the period of limitations by the docketing of a judgment or thefiling of a memorandum of lien pursuant to 58.1-1805; nor shall the periodof limitations apply to the provisions of 8.01-251 and 8.01-458.

B. The running of the period of limitations on collection shall be suspendedfor the period the assets of the taxpayer are in the control or custody ofany state or federal court, including the United States Bankruptcy Court, orfor the period during which a taxpayer is outside the Commonwealth if suchperiod of absence is for a continuous period of at least six months.

C. If the Department of Taxation has no contact with the delinquent taxpayerfor a period of seven years and no memorandum of lien has been appropriatelyfiled in a jurisdiction in which such taxpayer owns real estate, interest andpenalty shall no longer be added to the delinquent tax liability. The mailingof notices by the Department to the taxpayer's last known address shallconstitute contact with the taxpayer.

D. For purposes of this section, the "last known address" of the taxpayermeans the address shown on the most recent return filed by or on behalf ofthe taxpayer or the address provided in correspondence by or on behalf of thetaxpayer indicating that it is a change of the taxpayer's address.

(1990, c. 659.)