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Tax relief services in Virginia Beach, VA
Virginia Beach, VAVirginia Beach-Chesapeake-Norfolk Metro

Virginia Beach Tax Relief — IRS Help for Virginia Beach Residents

Virginia Beach anchors Hampton Roads, one of the largest military concentrations on the planet — home to Naval Station Norfolk, Joint Expeditionary Base Little Creek-Fort Story, NAS Oceana, and a defense contracting ecosystem that underpins the regional economy. Virginia's progressive income tax ranges from 2% to 5.75%, and the VA DOR coordinates with the IRS on data-sharing. Our team provides professional federal tax resolution services to Virginia Beach and Hampton Roads residents throughout Virginia Beach, Norfolk, Chesapeake, Portsmouth, Suffolk, and Newport News — with deep expertise in military tax law, defense contractor issues, and the unique challenges facing a transient military community.

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1.8M

Hampton Roads Metro Population

80K+

Active Duty Military

Norfolk (Granby St)

Hampton Roads IRS Office

2%–5.75%

State Tax Rate

Tax Relief Services in Virginia Beach, VA

New Beginning Tax Solutions provides professional IRS tax relief services to residents and businesses in Virginia Beach, part of the Virginia Beach-Chesapeake-Norfolk metropolitan area. With a metro population of 1.8M, Virginia Beach is home to thousands of taxpayers who may face IRS collections, liens, levies, audits, and back tax issues. Our team understands the local economy, the industries that drive Virginia Beach, and the specific tax challenges that Virginia Beach residents encounter.

The IRS maintains a significant enforcement presence across the Virginia Beach-Chesapeake-Norfolk metro area. Virginia Beach taxpayers are subject to the same federal tax code as all Americans — but local economic conditions, industry concentrations, and cost of living all shape how IRS collection actions affect Virginia Beach's residents and businesses.

Key Virginia Beach Industries

Military & Defense

Naval Station Norfolk, NAS Oceana, JEB Little Creek, NATO

Maritime & Shipbuilding

HII/Newport News Shipbuilding, BAE Systems, Colonna's

Tourism & Hospitality

Virginia Beach Oceanfront, hotels, restaurants, events

Agriculture

Farming, aquaculture, seafood, agribusiness

Healthcare

Sentara, Bon Secours, CHKD, military medical facilities

Logistics & Ports

Port of Virginia, warehousing, trucking, intermodal

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IRS Offices Near Virginia Beach, VA

Virginia Beach residents can visit these IRS Taxpayer Assistance Centers for in-person help. Appointments are required — call the number listed or schedule online at IRS.gov before visiting.

IRS Norfolk TAC

200 Granby St, Norfolk, VA 23510

Phone: 844-545-5640

Hours: Mon–Fri 8:30 AM – 4:30 PM (by appointment)

VA State Tax Agency

Virginia Department of Taxation

Virginia imposes a progressive personal income tax with rates from 2% (on income up to $3,000) to 5.75% (on income above $17,000) — meaning most taxpayers reach the top bracket quickly. Virginia offers a military spouse tax relief provision (the Military Spouses Residency Relief Act is observed at the federal level, but VA state rules may require filing). The VA DOR shares data with the IRS; an IRS audit adjustment is reported to Virginia and generally triggers a corresponding Notice of Assessment.

Visit Virginia Department of Taxation Website

Common Tax Problems for Virginia Beach Residents

While Virginia Beach taxpayers face the same IRS code as everyone else, certain issues are more common in the Virginia Beach-Chesapeake-Norfolk metro area due to the local economy, cost of living, and industry mix.

Active Duty Military & Veteran IRS Issues

Hampton Roads has over 80,000 active duty personnel across all branches, concentrated at Naval Station Norfolk (the world's largest naval base), NAS Oceana (master jet base), and JEB Little Creek-Fort Story. Military-specific IRS issues include: (1) combat zone tax exclusion — service members in designated combat zones can exclude basic pay and special pay from income, and the filing deadline is automatically extended 180 days after leaving the zone, but the exclusion must be properly documented, (2) PCS (Permanent Change of Station) moving expense deductions — military moves are still deductible (unlike civilian moves), but only unreimbursed expenses beyond what the government pays, (3) non-taxable allowances — BAH (Basic Allowance for Housing) and BAS (Basic Allowance for Subsistence) are not taxable and should not appear on W-2s, but errors occur, and (4) the Earned Income Tax Credit election for combat pay — service members can elect to include non-taxable combat pay in earned income to qualify for or increase the EITC. Military spouses with frequent relocations often have multiple years of unfiled returns across multiple states.

Defense Contractor IRS Audits & Government Contract Accounting

Hampton Roads has a massive defense contractor ecosystem supporting the Navy, shipbuilding, and military installations. Defense contractors face IRS audits that intersect with DCAA (Defense Contract Audit Agency) compliance requirements: (1) government contract cost accounting standards don't always align with IRS rules — a cost that DCAA considers allowable may not be deductible under the Internal Revenue Code, (2) small defense contractors and SDVOSBs (Service-Disabled Veteran-Owned Small Businesses) claiming government set-aside contracts face IRS scrutiny of their pass-through entity tax positions, (3) contractor employees working overseas or aboard ships face foreign earned income exclusion questions and potential FBAR/FATCA reporting for foreign accounts, and (4) security clearance holders face additional consequences from IRS tax problems — unpaid taxes can result in clearance suspension or revocation under the adjudicative guidelines for financial considerations.

Shipbuilding & Maritime Industry Worker Tax Challenges

Newport News Shipbuilding (Huntington Ingalls Industries) alone employs over 25,000 workers in the metro, and the maritime sector extends to ship repair, port operations, and defense maritime services. Shipyard workers and maritime professionals face: (1) shift differential and overtime income that pushes marginal tax rates higher than base wages would suggest, (2) travel and per-diem for ship repair crews that go where the ships are — expenses must be substantiated with contemporaneous records, (3) union dues and unreimbursed employee expenses (suspended for most employees under TCJA through 2025 but reverting thereafter), and (4) for maritime professionals working on vessels in international waters, foreign earned income exclusion (up to $126,500 for 2024) may apply if they meet the physical presence or bona fide residence tests — but the exclusion is often misunderstood and improperly claimed.

Military Spouse Residency & Multi-State Tax Filing

Under the Military Spouses Residency Relief Act (MSRRA, as amended by the Veterans Auto and Education Improvement Act), a military spouse who moves to a state solely to be with the service member (pursuant to military orders) may retain residency in their original state for tax purposes and is not subject to the new state's income tax on wages earned in the new state. However, MSRRA compliance is not automatic: the spouse must affirmatively claim the exemption, the employer must not withhold tax for the new state, and the rules differ for self-employment income and non-wage income. Many Hampton Roads military spouses have incorrectly filed in Virginia when they should have retained their prior state residency — or vice versa. An IRS audit that reveals income across multiple states can trigger a cascade of state residency audits.

Real Client Results

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Virginia Beach Tax Relief — Questions Answered

Where is the IRS office serving Virginia Beach?
The IRS Taxpayer Assistance Center serving Hampton Roads is in Norfolk at 200 Granby Street, in the Walter E. Hoffman United States Courthouse. Appointments are required — call 844-545-5640 or schedule online. Virginia Beach does not have its own TAC; the Norfolk office serves the entire metro. We represent clients at IRS offices nationwide and can handle your case without you needing to visit the Norfolk TAC.
I'm active duty Navy stationed in Norfolk — can I get IRS filing extensions?
Yes. Service members in a combat zone receive an automatic extension of at least 180 days after leaving the zone to file returns and pay taxes, with no interest or penalties during that period. Service members deployed outside the US but not in a combat zone receive an automatic 2-month extension to June 15 for filing (but not for payment). Additionally, service members can request Currently Not Collectible (CNC) status based on financial hardship — military pay may qualify if you can demonstrate that enforced collection would impair your ability to meet basic living expenses. None of these provisions are automatic — they must be claimed.
I'm a defense contractor — does an IRS tax problem affect my security clearance?
Potentially, yes. The adjudicative guidelines for security clearance determinations (Security Executive Agent Directive 4) list financial considerations as a specific area of concern. Unpaid federal tax debt, a federal tax lien, or a pattern of failing to file returns can be considered evidence of poor financial judgment or susceptibility to financial pressure — both of which are clearance concerns. The IRS does not proactively report tax issues to DCSA (Defense Counterintelligence and Security Agency), but clearance holders are required to self-report significant financial problems, and a tax lien is a public record that can be discovered during a periodic reinvestigation. We recommend that clearance holders address IRS problems proactively — documented repayment or resolution demonstrates responsibility and mitigates the security concern.
I'm a military spouse who moved to Virginia Beach for my spouse's orders — which state do I pay tax to?
Under the Military Spouses Residency Relief Act (MSRRA), you can retain your original state of residency for tax purposes and are not subject to Virginia income tax on wages earned in Virginia — provided (1) you moved to Virginia solely to be with the service member, (2) the service member is in Virginia pursuant to military orders, and (3) you maintain residency in the same state as the service member. This election is not automatic — you must file the appropriate exemption forms with your employer and potentially file a Virginia non-resident return. If you've been incorrectly filing in Virginia, or if you've been claiming MSRRA incorrectly, you may need to amend prior returns. An IRS audit can trigger a Virginia residency review.
I work at the shipyard in Newport News — what do I need to know about IRS audits?
Shipyard workers with substantial overtime, shift differential, and incentive pay can have W-2 income that fluctuates significantly year to year. The IRS generally does not audit W-2 income in isolation — it's reported by your employer and matched. However, if you have side income (a small business, rental property, gig work) alongside your shipyard W-2, that side income is where the IRS focuses. Additionally, if you travel for ship repair work and claim unreimbursed employee business expenses (once the TCJA suspension expires), those deductions require contemporaneous documentation — mileage logs, receipts, and a clear business purpose for each expense.

Get Free Tax Relief Help in Virginia Beach, VA

Whether you live in downtown Virginia Beach or the surrounding Virginia Beach-Chesapeake-Norfolk metro area, our team can review your IRS situation and explain your options — free, confidential, and with no obligation.

New Beginning Tax Solutions is a private tax resolution company and is not affiliated with the IRS or any government agency. Results vary based on individual circumstances.