Penalty & Interest Charges
The underpayment in each quarter is
assessed from the estimated payment due date to the date the tax is paid:
• Interest of 0.5% per month.
• Penalty of 1% per month.
Calculating the Charges: Use VT
Worksheet IN-152 to calculate the
amount. Enter the result on Form
IN-111, Section 9, Line 36, and
include the amount with your tax
payment. Payment at the time of
filing may reduce the charges as they accrue up to the time of payment. If
you have an overpayment but owe underpayment charges, the charges are
subtracted from the overpayment. NOTE: If you annualize for Federal
estimated tax payments, use VT Worksheet IN-152A.
Exceptions to Charges: (1) Taxpayers with occupations as farmers or
fishermen are not required to make estimated payments. If you are billed,
contact the Department to have the bill adjusted. (2) Taxpayers using the
annualized method for Federal estimated payments should use IN-152A to
calculate applicable interest and penalty and send a copy of the Federal
Form 2210 with supporting pages to the Department.
Next Year: You
may wish to adjust your withholding, or make estimated payments, or a
combination of both.
It's quick, easy,
and it's the law....