The Voluntary Disclosure Program (VDP) encourages taxpayers who have not filed and paid their taxes, to come forward voluntarily. In return, the Department agrees to forgive applicable late file and late pay penalties for qualifying taxpayers, provided the associated tax and interest are paid in a timely manner.
Guidelines for Voluntary Disclosure Applicants
The Voluntary Disclosure Program covers all tax types administered by the Vermont Department of Taxes. Any taxpayer who meets the eligibility criteria can participate. To be found eligible for this program, the applicant must meet the following criteria related to the tax type(s) and period(s) they want to disclose:
- The applicant has not been contacted by the Vermont Department of Taxes
- The IRS has not made a determination of underpaid taxes
- The applicant is not currently under audit
- The Vermont Department of Taxes has not sent a bill
- The applicant is not currently under criminal investigation by any District Attorney or by any state or local law enforcement agency
How to Participate
The quickest and easiest way to participate in this program is to complete our online VDP application. The application is available on the myVTax homepage. Look for the Voluntary Disclosure Program Application link in the Submissions and Correspondence section. During the initial application process, simply answer a few questions and the system will inform you if you are eligible to participate in the program.
If you are found eligible and choose to continue to submit the VDP application, you will be required to provide information necessary to administer your VDP Agreement at that time.
Once your application has been submitted, the Department will review it. The Department will mail eligible applicants a VDP Agreement with filing and payment information.
Want More Information?
For questions regarding our Voluntary Disclosure Program please contact us at 802-828-2514 or TAX.OfficeAudit@vermont.gov.