WV launches system to withhold payments from tax delinquent vendors

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CHARLESTON, W.Va. – The West Virginia State Auditor’s Office announced a new program Thursday that is aimed at stopping vendors who provide services to the state from being paid, if they owe state taxes.

“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,” said State Auditor John McCuskey.

A similar program, on the federal level, which is administered by the State Auditor’s Office, already exists.

The plan will happen in two phases.


Phase one, which is currently in place, will stop any new or additional business with a vendor the State Tax Department has identified as owing tax dollars. Vendors in this category will need to contact the State Tax Department and correct their delinquency in order to receive any new or additional business with the state, McCuskey said.

Phase two, which will go into affect soon, according to officials will not only stop the payment, but also allow for the State Tax Department to redirect the payment back to the state to collect past due taxes.

“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,” McCuskey said.
 

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