Vermont Back Taxes Resolution Guide: Resolving VT Tax Problems

The Vermont Department of Tax is responsible for enforcing tax compliance in the state of Vermont. Just like the IRS, the Vermont Department of Taxes offers various alternatives to individuals to resolve state owed back taxes and other state-specific tax problems. Below are several remedies offered by the state of Vermont to help taxpayers get back into compliance with their tax obligations.

Vermont Tax Payment Plan

If you cannot pay your taxes in full with the state of Vermont you can pay them in monthly payments. Realize that if you enter into a payment plan they will continue to charge you interest on the amount owed until the entire balance has been paid off. The VT Department of Taxes requires that taxpayers that cannot pay their tax liabilities in full to call or write to them in order to set up a payment plan. Below is the contact information to set up a payment plan:

Phone: (802) 828-2518

Mail:
VT Department of Taxes
ATTN: Compliance
PO Box 429
Montpelier, Vermont 05601-0429

Abatement of Penalties

The Vermont Department of Taxation may possibly remove or reduce tax penalties that were charged to an individual or business if they can show reasonable cause for not being in full compliance with the tax law. They do not have a formal method for abating penalties. They will consider individuals and businesses on a case by case basis.

To talk to a representative about abating penalties you will have to call their collections department at (802) 828-2518 and talk to them about your situation and they will provide you with details on what you can do if they think you qualify for the abatement.

Vermont Taxpayer Advocate

The Vermont Taxpayer Advocate was set up to help taxpayers that could not resolve tax problems through the normal channels. You can use their services if you meet one of the following requirements:

• You are suffering from significant financial hardship
• You are facing an immediate threat of adverse action
• You will suffer irreparable injury or long-term adverse impact if you don’t get immediate help
• You experienced a delay of 90 days or more when trying to resolve a tax problem through normal channels
• You have not received a response or resolution from the VT Department of Taxes by the date that they promised

Information Needed When Contacting Taxpayer Advocate

• Name, Address and SSN
• Phone number and/or e-mail address
• Type of tax and reporting period you are having an issue with
• Description of the problem and hardship (if applicable)
• Summary of the attempts made to resolve the problem through the normal channels
• Include dates and staff member names with whom you spoke if possible
• Power of attorney form if you would like to authorize someone else to speak on your behalf

Our Simple Tax Relief Process