West Virginia Implementing Vendor Payment Stoppage
West Virginia is in the process of implementing a two-part payment stoppage for vendors who don't pay state taxes. The Office of the State Auditor made the announcement earlier this month that the state will stop payments to vendors who owe the state money.
"The number of vendors to be included in the intercept routine will gradually get larger until all vendors are included," said State Auditor John B. McCuskey in a 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 in dollars in overdue tax bills, and ensure we are not compensating vendors, with state taxpayer dollars, who do not pay their taxes."
The first phase of this plan is already in place: the state withholding business with a vendor who has been deemed noncompliant. The second phase will be in place soon. It will "go one step further and 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," notes the release. Vendors will have payments halted if they are not in good standing with the State Tax Department.
"Vendors who do business with the state of West Virginia may not be able to do additional business with the state or receive checks for goods or services if they are delinquent on paying their state taxes. New business will be stopped and the state will soon be intercepting payments," according to the state auditor's release.
-Michael Miller, managing editor