Compliance Corner

The Compliance Division’s work contributes to the mission of the Department of Taxes by informing and educating taxpayers about complex tax laws, selecting and conducting audits, and collecting unpaid taxes. We have 55 auditors, collectors, technical, and support staff working on behalf of all Vermonters to ensure taxpayers are paying the right amount of tax.

One of our primary goals is to encourage “voluntary compliance” – that is, to enable Vermont taxpayers to accurately determine what taxes they are liable for and pay the correct amount on their own. Another goal is to provide a level playing field for Vermont taxpayers by making sure that everyone is paying their fair share, in accordance with current law.

Tax laws are complex, which can lead to honest mistakes. And there are people and businesses who under report taxes or do not file tax returns at all. We work diligently to identify people and businesses who are not reporting and paying the correct amount of tax and help bring them in to compliance. This is achieved through educational outreach, fact sheets, regulations, and audits conducted from our office in Montpelier and field staff located around the state.

We are continually looking for ways to improve service to Vermont taxpayers, and we welcome your feedback. You can contact the Compliance Division by phone at (802) 828-2514 or send an e-mail.


TIPS & NEWS

July 1, 2018

  • Fact Sheets: Your Guide to Taxation in Vermont
    The Department has been working hard in recent years to provide detailed information about a variety of tax types and topics. Check out our library of fact sheets to learn more about the topics we cover.

July 1, 2018

  • We are currently in the third run of our Personal Income Tax Discrepancy Program in our new tax system. This program uses federal data to identify taxpayers who have underpaid Vermont tax. Over those three runs we have improved the program and decreased the rate of improperly identified taxpayers by almost 60%. Thank you to all who have provided feedback that helped us improve selection parameters.


NOTABLE CASES

July 1, 2018

Multiple Home Businesses
We matched information and data to try to identify taxpayers who were misreporting expenses on Schedule C. 

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CURRENT WORK

July 1, 2018

Personal Income Tax Discrepancy
Our office audit staff is currently working on the personal income tax “Discrepancy” program for 2015. This program involves matching data items on the Vermont IN-111 and related schedules with information from the IRS and other state agencies.

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Larger Businesses
The Department has recently invested some resources in examining some of our large corporate taxpayers, too. Due to confidentiality restrictions of IRS Publication 1075 and the relatively small pool of companies affected, we cannot disclose detailed information. Even so, we are able to provide the following high-level overview.

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