Welcome to the web site for Wise County's Commissioner of the Revenue.

My Staff and I have designed this site for the convenient use of our taxpaying citizens. Visitors have access to all the same property information that can be found in public records at the Wise County Courthouse.  Rest assured that all private information is confidentially withheld from the general public.

We are continually committed to empowering our citizens through interactive technology.  By utilizing this website, taxpayers will be able to save time and money as they navigate their way to the information needed.

It is a great honor and pleasure to serve you!

Doug

FROM THE COMMISSIONER

FEDERAL INCOME TAX INFORMATION

By ADRIANA MORGA - Associated Press

…Here's what you need to know:

When is the deadline to file taxes?

Taxpayers have until Tuesday to submit their returns from 2022. 

What do I need to file my tax return?

While the required documents might depend on your individual case, here is a general list of what everyone needs:

— Social Security number

— W-2 forms, if you are employed

— 1099-G, if you are unemployed

— 1099 forms, if you are self-employed

— Savings and investment records

— Any eligible deduction, such as educational expenses, medical bills, charitable donations, etc.

— Tax credits, such as child tax credit, retirement savings contributions credit, etc.

To find a more detailed document list, visit the IRS website.

Tom O'Saben, director of tax content and government relations at the National Association of Tax Professionals, recommends gathering all of your documents in one place before you start your tax return and also having your documents from last year if your financial situation has drastically changed.

Theresa Grover, site coordinator for the Volunteer Income Tax Assistance (VITA) program at Northeast Wisconsin Technical College, also recommends taxpayers create an identity protection PIN with the IRS to guard against identity theft. Once you create a number, the IRS will require it to file your tax return.

How do I file my taxes?

You can either file your taxes online or on paper. However, there is a big time difference between the two options. Paper filing can take up to six months for the IRS to process, while electronic filing cuts it down to three weeks.

What resources are out there?

For those who make $73,000 or less per year, the IRS offers free guided tax preparation that does the math for you. If you have questions while working on your tax forms, the IRS also offers an interactive tax assistant tool that can provide answers based on your information.

Beyond the popular companies such as TurboTax and H&R Block, taxpayers can also hire licensed professionals, such as certified public accountants. The IRS offers a directory of tax preparers across the United States.

The IRS also funds two types of programs that offer free tax help: VITA and the Tax Counseling for the Elderly program (TCE). People who earn $60,000 or less a year, have disabilities or are limited English speakers, qualify for the VITA program. Those who are 60 or older, qualify for the TCE program. The IRS has a site for locating organizations hosting VITA and TCE clinics.

If you have a tax problem, there are clinics around the country that can help you resolve these issues. Generally, these tax clinics also offer services in other languages such as Spanish, Chinese and Vietnamese.

How can I avoid mistakes in my tax return?

Many people fear getting in trouble with the IRS if they make a mistake. Here's how to avoid some of the most common ones:

— Double check your name on your Social Security card.

When working with clients, O'Saben always asks them to bring their Social Security card to double-check their number and their legal name, which can change when when people get married.

"You may have changed your name but you didn't change it with Social Security," O'Saben said. "If the Social Security number doesn't match to the first four letters of the last name, the return will be rejected and that will delay processing."

— Search for tax statements if you have opted out of paper mail.

Many people like to opt out of snail mail, but paper mail can also include your tax documents.

"If you didn't get anything in the mail doesn't mean that there isn't an information document out there that you need to be aware of and report accordingly," O'Saben said.

— Make sure you report all of your income.

If you had more than one job in 2022, you need the W-2 forms for each — not just the one from the job you ended the year with, says Christina Wease, interim director of the tax clinic at Michigan State University.

Additionally, if you have a business that uses PayPal or Venmo as a service, it must be reported in your tax return. For 2022, the use of those services needs to be reported if they amounted to 200 transactions in the calendar year and more than $20,000 in sales from goods or services.

What if I make a mistake?

Mistakes happen, and the IRS takes different approaches depending on each case. In general, if you make a mistake or you're missing something in your tax records, the IRS will audit you, Alev said. An audit means that the IRS will ask you for more documentation.

"Generally, they are very understanding and willing to work with folks. You're not going to get arrested if you type in the wrong field," Alev said.

What if I need an extension?

If you run out of time to file your tax return, you can file for an extension. However, it is important to remember that the extension is only to file your taxes, not to pay them. If you owe taxes, you should pay an estimated amount before the deadline so you avoid paying penalties and interest. If you expect to receive a refund, you will still receive your money when you file your taxes.

The deadline to file for an extension is Tuesday, which will give you until Oct. 16 to file your taxes. You can file for an extension through your tax software or preparer of preference, the IRS Free File tool or via mail.

What if I miss the tax deadline?

If you missed the tax deadline and you didn't file for an extension, there are several penalties that you might receive. If you missed the deadline you might receive a failure-to-file penalty. This penalty will be 5% of the unpaid taxes for each month the tax return is late, according to the IRS.

If you owe taxes and you didn't pay them prior to the tax deadline, you will receive a failure-to-pay penalty. Interest will also be charged on both taxes and penalties owed. If you are due for a refund, you will not receive a penalty and you will receive your tax return payment. If you had special circumstances that meant you were unable to file or pay your taxes on time, you might be able to remove or reduce your penalty.

If the amount of taxes you owe becomes too large, you can apply for a payment plan. Payment plans will allow you to pay off over time.

What if I haven't filed for years?

Wease explains that you can file taxes late and, if you were supposed to get a refund, you might still get it. If you haven't filed for years and you owe money to the IRS, you may be hit with penalties but the agency will can work with you to manage payment plans.

How can I avoid scams?

Tax season is prime time for tax scams, according to the IRS. These scams can come via phone, text, email and social media. The IRS uses none of those means to contact taxpayers.

Sometimes scams are even operated by tax preparers so it's important to ask lots of questions. If a tax preparer says you will get a refund that is larger than what you've received in previous years, for example, that may be a red flag, O'Saben said.

If you can't see what your tax preparer is working on, get a copy of the tax return and ask questions about each of the entries.

How long should I keep copies of my tax returns?

It's always good practice to keep a record of your tax returns, just in case the IRS audits you for an item you reported years ago. Both Wease and O'Saben recommend keeping copies of your tax return documents for up to seven years.

Filing your taxes can be anxiety-inducing—especially if you're not sure whether you're going to owe the government money or receive a nice tax refund. Overpaying your tax obligation throughout the year by having extra money withheld from your paychecks is an interest-free loan to the government, but finding out you're getting one can give you a pleasant boost when you file your taxes. It's a popular option: 74% of taxpayers received a refund in the 2020 tax year.

If you have self-employment income, changed jobs, made profits by selling stock, or chose not to give the federal government additional money throughout the year, you may owe taxes instead of receiving a refund. Nationwide, 1 in 5 people who filed taxes owe money on their returns, according to Stacker's analysis of 2020 tax year data from the IRS, the most recent year available.

The average amount owed was more than $6,500—a few thousand dollars more than the average tax refund. To find out which states' taxpayers had the highest balances, Stacker used Internal Revenue Service data to rank states by the average amount taxpayers owed on tax day.

Only tax filers who owed money on their return were included; in other words, those who received refunds don't factor into the averages. The number and share of tax filers who owed money on their return are also shown in the analysis but didn't factor into the ranking. 

• The Wise County Commissioner of the Revenue is excited to offer ANY UVA Wise and Mountain Empire Community College student FREE tax preparation services. 

2023 INCOME TAX RETURN ASSISTANCE

Beginning Wednesday, January 25, 2023,

Commissioner Douglas Mullins, Jr. and staff will continue to offer FREE tax preparation services, which will include the following options for Wise County Taxpayers:

• Same-day service (time permitting)
• Drop-off service (in-person or lockbox) 

$5.00 recovery charge (includes copy to mail & copy for your records; cash or check only)

Assistance offered Monday – Friday, 9:00am – 4:00pm

No appointments necessary

For more information, call (276) 328-3556, option 2

• Statement by Commissioner of the Revenue Douglas Mullins, Jr. regarding vehicle assessments. September 26, 2022

  Virginia state code 58.1-3503 directs the local assessing officer to value vehicles at 100% of the current market value, utilizing a recognized pricing guide. Those laws are made by state delegates and state senators. The Virginia general assembly also creates laws determining the type of property that may be assessed for the purpose of taxation and outlines the appeals process afforded to each taxpayer who disagrees with their assessment. All of these laws are created by state government. 

   My office determines fair market value of taxable property based upon those state laws. To determine the fair market value of vehicles, Wise County has used the standardized national pricing guide JD Power (formerly NADA) for over 20 years. We apply the lowest value offered in JD Power…clean loan value. There are higher values offered…clean retail and MSRP. The Commissioner is given little discretion with these values as state law requires uniformity for its citizens. As there are exceptions to most laws, extenuating circumstances involving the vehicle, may offer some latitude for adjustments. Otherwise, our input in the valuation process is to follow the national pricing guide.

   Local governing bodies are granted power to create tax rates by Virginia Code. Annual tax rates are applied to value assessments to determine final tax levies for taxable properties. Virginia law purposely delegates these two functions to different local offices in order to ensure checks and balances for its citizens.

   “This is the first year we’ve ever seen a car market like this. Lack of new car supply has driven the used car market to off-the-chart levels…we all normally expect to see our vehicles depreciate in value.” 

  JD Power projected back in January that there would be an average 39% increase in 2022 on used vehicles due to current supply and demand market factors.

   “I think most of us recognize that our used vehicle would bring a higher price this year than last year if we decided to sell it.” Because there is a shortage of new vehicles, dealerships are hungry to add cars and trucks to their fleet, driving prices to new record highs. Car owners are realizing as much as $6,000 of additional value this year. Scenarios like purchasing a new 2019 three years ago, driving it for three years and recouping nearly the entire purchase price is commonplace in this year’s market… unheard of pricing activity.

   At the end of the day, fair market value is just that…the price that you could expect to get for your vehicle in the market currently. National car pricing guides, such as JD Power, gather and analyze massive amounts of sales data before offering final fair market values. My office assigns the value created by JD Power’s research as the county assessment. The tax amount you pay on your vehicle is determined by a second function, the current county tax rate, set by the governing body. 

   In its presentation at the annual Commissioner of the Revenue Conference this month, a JD Power representative projected one more year of abnormally high car values, followed by a slow recovery back to normal historic pricing in 2024. 

  
  
• Information about your vehicle assessment for 2022… Values for used vehicles are determined by the recognized pricing guide JD Power (formerly NADA). My office has used this pricing guide for over 20 years. Your car assessment (value) is, and has always been, based upon the lowest value in the pricing guide (clean loan value). 

JD Power Valuation Services 2022 Used Car Values Projection (January 2022) “ …We are expecting values for all vehicles up to eight years in age to climb as high as 46% in Jan 2022 compared to Jan 2021. Additionally, if you look at full year 2020 versus 2021, prices look like they will end the year 39% higher on a year-over-year basis.”

1.  IF YOU FEEL YOUR VEHICLE IS NOT ASSESSED CORRECTLY, YOU MAY APPLY TO THE COMMISSIONER FOR CORRECTION OF THE ASSESSMENT PURSUANT TO VIRGINIA CODE SECTION 58.1-3980. IN ORDER TO DO SO, THE VEHICLE MUST BE APPRAISED BY ONE EXPERT (CAR DEALER, AUTO MECHANIC, OR INSURANCE APPRAISER.) YOU MUST PRESENT TO THE COMMISSIONER THE WRITTEN APPRAISAL OF THE VEHICLE. 

2. THE COMMISSIONER WILL GLADLY ACCEPT AN APPRAISAL – IT MUST INCLUDE THE FOLLOWING: 

• It must be on the letterhead of the appraiser.
• It must include the phone number, address and signature of the appraiser.
• The appraisal must state what the condition of the vehicle was on January 1 of the tax year for which the assessment is being questioned. 
• The appraisal must specify what is particularly wrong with the vehicle which makes it worth less than the average loan value in the J.D. Power Appraisal Guide, i.e. extent of rust, extent of body damage, absence of engine, etc.
• The appraisal must list each item that was probably wrong with the vehicle on January 1 and the amount deducted from the average loan value of each item.

3.  WE WILL BE GLAD TO EMAIL OR MAIL THE APPLICATION FOR CORRECTION OF ASSESSMENT. YOU CAN ALSO COMPLETE THE APPLICATION FOR ADMINISTRATIVE APPEAL OF LOCAL MOBILE PROPERTY ONLINE. THIS FORM ALONG WITH THE APPRAISAL SHOULD BE RETURNED TO THE COMMISSIONER. THE COMMISSIONER WILL REVIEW THE APPRAISAL AND NOTIFY THE TAXPAYER IF AN ADJUSTMENT CAN BE MADE.