Voluntary Disclosure Program

The Department’s position on disclosures is determined by the specifics of each disclosure applicant.

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. Requests for A Voluntary Disclosure should be sent to the Director of Compliance.

Sales and Use Tax

If a legitimate claim is made for voluntary disclosure of sales and use tax, the Department will generally agree to limit prior period exposure to three (3) years or to the date exposure was established, whichever is the lesser period, unless the taxpayer has been collecting sales taxes but not paying. The Department may agree to waive all penalties for voluntary disclosures as long as the tax and interest due are paid when assessed.

If the taxpayer has been collecting sales taxes from customers and not paying the tax, the Department will extend the prior period exposure to include all liabilities of this type. The specific facts of each case will determine the 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 a legitimate claim is made for corporate/business income tax, the Department will generally agree to limit prior period exposure to three (3) years or to the date exposure was established, whichever is the lesser period. The Department may agree to waive all penalties for voluntary disclosures as long as the tax and interest due are paid when assessed.

In the event that exposure is arguable or there is no traditional exposure, 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, penalties and other related information.

If you have questions or would like to apply, contact us at (802) 828-2514; by email; or mail your request to:

Vermont Department of Taxes
Attn: Director of Compliance
P. O. Box 429
Montpelier, VT 05601-042

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Contact Us

Commissioner Kaj Samsom
133 State Street | Montpelier, VT 05633
(802) 828-2505

Taxpayer Assistance Window
Office Hours: 7:45 a.m. - 4:30 p.m. Monday - Friday

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