W Virginia Withholds Payment To Tax Delinquent Vendors

Taxes

The West Virginia State Auditor’s office has announced a new tax program aimed at vendors who owe the state money.

The program will prevent vendors who owe the state money from being payed. Instead, the money will be sent to the State Treasury to benefit the state’s taxpayers.

“The number of vendors to be included in the intercept routine will gradually get larger until all vendors are included,” State Auditor John B. McCuskey said in a press release. “This process is designed to insure the State is not paying vendors who are not paying their taxes. We believe this new approach will capture millions of dollars in overdue tax bills, and ensure we are not compensating vendors, with state taxpayer dollars, who do not pay their taxes.”

Phase one, which is already in place, stops a non-compliant vendor from being able to carry out any additional business within the state. The vendor will not be able to resume business in West Virginia until it has corrected its delinquency. In addition, a soon-to-launch phase two will not only stop the payment, but also allow for the State Tax Department to redirect the funds back to the state to collect past-due taxes.

Vendors are flagged via information matched against vendor payment files, on a daily basis, to determine if the state is about to pay a vendor for goods or services received. If the vendor is delinquent on its taxes, then all or a portion of the payment will be withheld until the vendor contacts the state and gets into compliance.

“Our office continues to lead the way in utilizing technology to benefit the taxpayers,” McCuskey added. “We are very proud of this new program and hopeful the savings created will help alleviate some of the current financial problems in our state.”