The Internal Revenue Service has placed three tax liens totaling more than $830,000 against Virginia Intermont College.
The liens were placed against the former private, liberal arts college during the first five months of this year, according to records on file with Bristol, Virginia Circuit Court. VI ceased operating as a school in May in the face of financial collapse, dwindling enrollment and the July 1 loss of its accreditation.
A federal tax lien is the government’s legal claim against property when an individual or business doesn’t pay a tax debt, according to the agency’s website. The lien protects the government’s interest in all property, including real estate, personal property and financial assets. A federal tax lien exists after the IRS assesses liability and sends a bill that explains how much is owed, but the individual or business neglects or refuses to fully pay the debt.