Installment agreements for the payment of taxes

# A.

# 1.

The Tax Commissioner is required to offer to enter into a written agreement with any taxpayer filing a return for taxes imposed under Article 2 (§ 58.1-320 et seq.) of Chapter 3 under which such taxpayer is allowed to satisfy his tax liability in installment payments over a payment period of up to five years on petition by the taxpayer, if the Tax Commissioner determines such an agreement will facilitate collection.

# 2.

Except as identified in subdivision 1, the Tax Commissioner is authorized to enter into a written agreement with any taxpayer under which such taxpayer is allowed to satisfy his tax liability in installment payments, if the Tax Commissioner determines such an agreement will facilitate collection.

# B.

Except as otherwise provided in this section, any agreement entered into by the Tax Commissioner under subsection A shall remain in effect for the term of the agreement.

The Tax Commissioner may terminate any installment agreement if:

# 1.

Information that the taxpayer provided prior to the date such agreement was entered into was inaccurate or incomplete; or

# 2.

The Tax Commissioner determines that the collection of any tax to which an agreement relates is in jeopardy.

# C.

The Tax Commissioner may alter, modify, or terminate an installment agreement in the case of the failure of the taxpayer:

# 1.

To pay any installment at the time it is due;

# 2.

To pay any other tax liability at the time it is due; or

# 3.

To file with the Department any required tax or information return during the time period such agreement is in effect.

# D.

The Tax Commissioner may alter, modify, or terminate an installment agreement under other exceptional circumstances as he deems appropriate.