Legal Collections Employer Liens

Frequently Asked Questions Regarding Third-Party Tax Liens

Why didn't the City of Chesapeake notify me that they sent the tax lien to my employer?

When a lien is issued a copy is mailed to the taxpayer. There are no provisions in the Code of Virginia that requires a specific warning to the taxpayer regarding an impending lien. The Code of Virginia § 58.1-3912 (A) addresses the mailing of bills. Prior to mailing the lien, the original tax bill and several delinquent notices are sent to the taxpayer. This gives the taxpayer the opportunity to pay or contact the Treasurer's office to make acceptable payment arrangements.

There are two names on the tax bill, why did you come after me? I was just the co-signer.

All names that appear on the registration are equally liable for payment of taxes.

I thought the Treasurer's Office had to take me to court before it could garnish my wages?

This is not a garnishment; Code of Virginia § 58.1-3952 (A) gives the Treasurer the authority to take such action without going through due process.

When does the lien need to be paid?

Upon receipt of the lien. The taxpayer's lien clearly states: "If you do not want your employer to deduct your wages, you must pay immediately." The employer must take deductions from the first pay period following receipt of the lien. Tax liens have an issue and return date. Some taxpayers incorrectly believe that they have until the return date to pay or that their employer can wait until the last pay period to deduct the amount owed.

What can I do to prevent my employer from deducting for this tax lien?

In order to prevent the employer from deducting the lien amount, the taxpayer must pay the amount listed immediately by cash, money order or certified check.

When will my employer deduct this amount?

The employer should start withholding the beginning of the next pay period after receipt of the Tax lien. The taxpayer must contact their employer to find out exactly when the deduction will start.

How much will my employer deduct each pay period?

Employers should deduct the full amount (100%) upon receipt of the tax lien. If the taxpayer resigns and the employer did not withhold the full amount of the lien, the employer can be held liable for payment.

After the lien has been issued to my employer, can I make payment arrangements?

Yes, however any amount agreed upon will have to be deducted by your employer. The taxpayer should provide the name and the fax number of their payroll department to the Treasurer's Office so that we can notify the employer of the correct amount to deduct.

Why can't I make the payments to the Treasurer's Office during a payment arrangement?

Once the lien has been issued, the payment must come directly from the employer.

If the employee that has been issued the tax lien is no longer employed by my company, what do I do?

On company letterhead or on the lien notice, indicate the date of termination, last known mailing address and the name and address of the former employee's new employer, if known. Fax or mail this information to the Treasurer's Office.

On occasion the employee will call the Treasurer's Office upon receipt of the Tax lien to inform us that they are not employed with the company that the tax lien was sent.

One of the Treasurer's collection agents will record the new employer's name and address. If they are unemployed, the collector will record their contact information and when they can pay the delinquent tax bill. The collector will make the appropriate arrangement based on the best available information.