VERMONT DEPARTMENT OF TAXES BACK TAX RELIEF

Get started resolving your state tax liabilities using the information below.  If you still need help, reach out to us using the contact form to the right of this page.

VT-DOT Monthly Payment Plan

The message Vermont wants to send to taxpayers before discussing an installment agreement to pay back-taxes, is that it’s cheaper in the long run to pay them when they’re due.  I believe we all realize that, so let’s take a look at what you can expect when you contact the State about a payment plan.

According to the DOT’s website, your ability to pay will be determined, in part, by the following.

• Number of dependents you support
• The value and equity in any property or other assets you own
• Monthly income and expenses
• Other debts you may have

In the past, we’ve found that the State would like to keep monthly payment plans around the 12 month time frame.  You can expect to complete the DOT’s Financial and Income Statement form and provide supporting documents, such as tax returns, proof of income and bank statements.

State of Vermont Offer in Compromise

The commissioner has the authority to accept an Offer in Compromise.

Here are a few tidbits about the VT OIC.

• probably won't work for Trust Taxes
• probably won't work if you have a history of non-compliance
• don't bother if you've had an OIC granted in the past 5 years
• 5% down payment is non-refundable

find more on the OIC web page.

Penalty Relief

Getting penalties removed on a Sales Tax liability is pretty tough to do in any state.  Vermont is no different.

However, the Department may consider your request for penalty abatement if you have Reasonable Cause. 

The IRS states that Reasonable Cause relief is considered when you’ve exercised ordinary business care and prudence to meet your tax obligations.  We expect Vermont to have a similar stance.