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Virginia local tax · BPOL & business personal property audits

Got a BPOL audit letter or a business license bill you don't agree with? We can help.

Virginia counties, cities and towns audit local business license (BPOL) and business personal property filings, often looking back several years. Our Ashburn advisors review the assessment, fix what is wrong and appeal what is not, in Loudoun, Fairfax and anywhere in Virginia.

Forms & standards
Va. Code § 58.1-3700§ 58.1-3703.1 appealsOut-of-state deductionBPOL classificationBusiness personal propertyState Tax Commissioner

Serving Virginia, Loudoun County, Fairfax County, Northern Virginia.

What we handle

Why BPOL audits cost more than they should

Most Virginia localities charge a yearly business license tax on gross receipts, and the rate depends on how your business is classified. In Fairfax County, professional services pay $0.31 per $100 while business services pay $0.19; in Loudoun County the same categories pay $0.33 and $0.17. A reclassification alone can nearly double the bill, and auditors often go back three prior years.

Many assessments can be reduced. Receipts earned in other states, receipts belonging to another Virginia locality, and amounts that are not gross receipts at all are common errors. Virginia law gives you a local appeal and then an appeal to the State Tax Commissioner, and collection of the disputed amount is generally suspended while the appeal is pending.

Speak with an advisor
  • Audit and assessment reviewWe compare the auditor's numbers with your federal returns, ledgers and contracts and identify every overstatement.
  • Classification disputesProfessional versus business service, personal service, contractor or retail: the category sets the rate.
  • Gross receipts and exclusionsRemoving amounts that are not taxable gross receipts and documenting each exclusion.
  • Out-of-state deductionDeducting receipts from business in states where you file income tax, a frequent issue for consultants and federal contractors.
  • Multi-location and situs issuesAssigning receipts to the right office when you work in several Virginia localities.
  • Unregistered or late yearsRegistering missed years and requesting penalty relief before the locality estimates for you.
  • Business personal property auditsEquipment, furniture and computer listings, depreciation schedules and disposals.
  • AppealsLocal administrative appeals, appeals to the State Tax Commissioner, and support for counsel in circuit court.

Where we help

Rates in our two largest counties

Fairfax

Fairfax County BPOL

Under $10,000 no fee; $10,001–$50,000 $30; $50,001–$100,000 $50; above that, rates per $100 such as professional $0.31, business service $0.19, retail $0.17, contractors $0.11.

Loudoun

Loudoun County BPOL

$30 when gross receipts are $200,000 or less; above that, rates per $100 such as professional $0.33, business service $0.17, retail $0.17, contractors $0.13.

Deadlines

Due March 1 in both

Annual license filings and payment are due March 1; late filing or payment generally adds a 10% penalty.

Towns

Towns and cities differ

Leesburg, Herndon, Vienna and other towns, and independent cities, license businesses themselves, with their own rates.

Our approach

How the engagement runs.

Read the notice

We confirm the years, the locality, the deadline and what the auditor is asking for.

Rebuild the numbers

Gross receipts by year, location and activity, reconciled to your federal returns.

Respond and negotiate

A written response with support for classification, deductions and exclusions.

Appeal if needed

Local appeal, then the State Tax Commissioner within 90 days of the local final decision.

Questions

Frequently asked

If your question isn't here, call (703) 880-8412 and you'll reach a person.

What is BPOL tax in Virginia?

BPOL stands for Business, Professional and Occupational License tax. Most Virginia counties, cities and towns charge it each year based on the prior year's gross receipts, with rates that vary by type of business. Fairfax County and Loudoun County both require filing and payment by March 1.

Why am I being audited for BPOL?

Localities compare license filings with state and federal data, business registrations and property records. Common triggers are a business that never registered, receipts that don't match income tax returns, a change of address, or a classification the locality thinks is wrong.

How far back can a Virginia locality assess BPOL?

Generally up to three prior years for taxes that were omitted, plus the current year. Penalties and interest are usually added, which is why early review matters.

Can I deduct receipts from work outside Virginia?

Often, yes. Virginia allows a deduction for receipts attributable to business conducted in another state where you are liable for an income or similar tax. Consultants, federal contractors and professionals working across state lines frequently overpay because they don't claim it.

How do I appeal a BPOL assessment?

File a local administrative appeal with the assessing official, generally within one year of the assessment or the end of the tax year. After the local final determination, you can appeal to the Virginia Tax Commissioner within 90 days. Collection of the disputed amount is generally suspended while those appeals are pending.

Do you only handle Loudoun and Fairfax?

No. We represent businesses before counties, cities and towns across Virginia, including Arlington, Prince William, Alexandria, Leesburg and Herndon, as well as Loudoun and Fairfax.

Latest updates

IRS & federal tax

All IRS & federal tax updates
Nov 5, 2026IRS & federal tax

IRS releases 2027 inflation adjustments (Rev. Proc. 2026-35)

For 2027 the joint-return standard deduction rises to $33,200, the estate tax basic exclusion to $15,480,000, the annual gift exclusion to $20,000 and the Section 179 expensing limit to $2,640,000. Our advisors recommend revisiting year-end gifting and equipment purchase plans with these figures in mind.

Source: IRS (IR-2026-133)

Our guidance

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