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Voluntary Disclosure Program

The Department’s voluntary disclosure program is administered through the Compliance Division. The Department’s position on disclosures is determined by the individual fact pattern for each disclosure applicant.

The following are guidelines for voluntary disclosure applicants:

In order to be considered for the voluntary disclosure program, the disclosure applicant must not have been contacted by the Department prior to initiating the disclosure process.

Sales and Use Tax

If sufficient nexus exists for sales and use tax, the Department will generally agree to limit prior period exposure to (3) three years or to the date nexus was established, whichever is the lesser period, unless the taxpayer has been collecting sales taxes and not remitting. The Department may agree to waive all penalties, provided that the tax and interest due are paid when assessed.
If the taxpayer has been collecting sales taxes from customers and not remitting the tax, the Department will extend the prior period exposure to include all liabilities of this type. The specific facts present in each case will determine the disposition of penalties.

Questionable taxability – If there is questionable liability, that is, if it is not entirely clear whether a taxpayer’s sales are subject to sales tax, the Department may agree to prospective filing or to a limited prior period exposure.

Corporate and Business Income Tax

If sufficient nexus exists for corporate/business income tax, the Department will generally agree to limit prior period exposure to (3) three years or to the date nexus was established, whichever is the lesser period. The Department may agree to waive all penalties, provided that the tax and interest due are paid when assessed.

In the event that nexus is arguable or there is no traditional nexus, the Department may agree to prospective filing or to a shorter prior period exposure.

Other Taxes, e.g. Meals and Rooms Tax, Withholding Tax, Individual Income Tax, Etc.

Applicants for voluntary disclosure for other taxes should contact the Department for time exposure, applicability of penalties and other related information.

Voluntary disclosure inquiries should be addressed to:
Vermont Department of Taxes
Attn: Director of Compliance
P. O. Box 429
Montpelier, VT 05601-0429
E-mail:  tax-compliance@state.vt.us

 
Vermont Department of Taxes, 133 State Street, Montpelier, Vermont 05633-1401