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Vermont sales tax notices

Got a letter from the Vermont Department of Taxes? Find it below to see what it means, why businesses usually receive it, and what to do next.

Sources checked

Tax authority

Vermont Department of Taxes (opens in a new tab)

Official notice guide (opens in a new tab)

Disagree with a notice?

Appeal a Notice of Assessment in writing. You can use Respond to Correspondence on myVTax (you need the letter ID from the notice) or mail the Taxpayer Appeal Form (TAX-610) that came with the notice, along with supporting documents. The appeal must be signed. The Department first tries to settle the case. If it cannot, a formal hearing is held before the Commissioner through a Department hearing officer. After the Commissioner's determination, you have 30 days to appeal to Superior Court. Collection action pauses during an appeal, but penalty and interest keep accruing.

Deadline: 60 days from the mailing date of the notice of assessment

Source: Vermont Department of Taxes (opens in a new tab)

Failure to file

The authority has no return on record for a period it expects one, often because an account is open but filings stopped.

Failure to file

Notice of Intent to Assess (NOIA)

An informal notice that the Department intends to assess tax. It explains why the notice was sent, gives a response date, and says what happens if you do nothing.

Why you got it

  • The Department did not receive a return by the due date
  • An audit found underpaid tax
  • Penalty and interest are owed

What to do

  1. Read the notice and check it against your records by the response date shown.
  2. If a return is missing, file it, and pay the tax with the enclosed voucher or on myVTax.
  3. If you disagree, follow the steps on the notice. You can respond by mail, but responding on myVTax is quicker. Attach any documents that support your position
  4. If you do not respond, an assessment will be issued in the next billing cycle.

Before you pay penalties: check whether you can ask for them to be waived, and what the state needs paid first. How to ask

Source: Notice of Intent to Assess (NOIA) | Department of Taxes (opens in a new tab)

Balance due

A bill for tax, penalty, or interest the authority says is unpaid.

Balance due

Statement of Account

A bill statement that itemizes the total past-due amount, including tax, penalty and interest. A payment voucher is at the bottom.

Why you got it

  • Tax was paid late or not in full
  • A return was filed late, which triggers penalties and interest

What to do

  1. Check the itemized tax, penalty and interest against your records. If you think payments were not credited, have the payment dates, amounts and methods ready when you call.
  2. Pay the tax on myVTax, or mail a check or money order with the voucher to PO Box 1779, Montpelier, VT 05601-1779. If you have no Notice of Assessment, call the Compliance Division at 802-828-2518.
  3. If the penalty or interest resulted from reasonable cause or hardship, ask the Department to abate it.

Before you pay penalties: check whether you can ask for them to be waived, and what the state needs paid first. How to ask

Source: Understanding Your Tax Bill | Department of Taxes (opens in a new tab)

Assessment

A proposed or final determination of tax owed, sometimes estimated when returns were never filed.

Assessment

Notice of Assessment (NOA)

The formal tax bill, sent as a first or second notice. It includes a statement of your account and instructions on how to appeal.

Why you got it

  • A Notice of Intent to Assess went unanswered or was not disputed
  • An audit was completed with tax still due

What to do

  1. Check the assessment against your records.
  2. If you disagree with the assessment, appeal in writing within 60 days on myVTax (with the letter ID) or with the enclosed Form TAX-610.
  3. If you agree with the tax, pay on myVTax or by mail with the voucher, or set up a payment plan on myVTax or by calling 802-828-2518.
  4. To ask only for abatement of penalty or interest for reasonable cause or hardship, use the contact details on the notice. You do not need to file an appeal for this.

Before you pay penalties: check whether you can ask for them to be waived, and what the state needs paid first. How to ask

Response window: Appeals must be received within 60 days of the mailing of the notice

Source: Understanding Your Tax Bill | Department of Taxes (opens in a new tab)

Audit

A request for records or notice that the authority is examining your returns.

Audit

Audit notification letter

A letter telling you that the Department has selected you for a desk audit or a field audit. It names the tax type, the audit periods and the records to collect.

Why you got it

  • The Department found discrepancies in data from the IRS, the Vermont Department of Labor, the Secretary of State or other agencies
  • Findings from earlier audits, reviews of filed returns, or tips

What to do

  1. Respond promptly. Confirm or set up an appointment with the examiner if the letter asks you to.
  2. Gather the documents listed in the letter for the audit periods.
  3. Settle factual issues with the auditor during the audit. Before an assessment is issued, review the preliminary notice of issues.

Source: What is an Audit | Department of Taxes (opens in a new tab)

Collections

Enforcement on unpaid balances, such as liens, levies, warrants, or referral to a collection agency.

Collections

Collections letter or notice

A letter from the Collections section about a tax debt that was not appealed or is past its 60-day appeal period. It may warn that the debt will be sent to an outside collection agency.

Why you got it

  • An assessed bill was not paid and not appealed within 60 days
  • You did not respond to earlier notices, or you defaulted on a payment plan

What to do

  1. Contact Collections at 802-828-2518 or tax.collections@vermont.gov to pay or set up a payment plan.
  2. Act quickly. Unpaid debts can lead to liens, bank levies, wage garnishment, license revocation, listing on the Top 100 Delinquent Taxpayer Report, or referral to a collection agency.
  3. If you believe a lien should have been released after payment, contact the Department.
  4. If you get an unexpected demand for payment, check with Collections that it is real.

Before you pay penalties: check whether you can ask for them to be waived, and what the state needs paid first. How to ask

Source: Collections | Department of Taxes (opens in a new tab)

Ask for penalty relief

Penalties on a Vermont notice aren't always final. You can ask for them to be waived. Follow the steps below, including anything the state requires you to file or pay before it reviews the request.

Abatement of penalty or interest (reasonable cause or hardship)

  1. If you can, pay the tax on myVTax or set up a payment plan there. Paying does not stop you asking for abatement
  2. Contact the Department at the email address or phone number on your Notice of Assessment and ask for abatement of penalty or interest. You do not need to file an appeal for this
  3. Explain the reasonable cause or hardship when you contact the Department

What qualifies: Reasonable cause or hardship

Interest: You can request abatement of penalty or interest due to reasonable cause or hardship without filing an appeal

Source: Understanding Your Tax Bill | Department of Taxes (opens in a new tab)

Before you respond

  • Check the date on the notice. Response windows usually run from that date, not the day you open it.
  • Match the account number and filing period to your own records before paying or disputing.
  • If returns are missing, filing the actual returns usually replaces an estimated bill. Confirm how on the notice or with the authority.
  • Ask about penalty relief before paying penalties, and check what must be paid with the request. See how
  • Keep a copy of the notice and everything you send back.

This page is general information, not tax or legal advice. Notice names and procedures change, so always follow the instructions on your notice and the official sources linked above.

Need the rates, nexus thresholds and filing rules? Read the Vermont sales tax guide.

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