Current Work: Personal Income Tax Discoveries

The Office Audit team has three active Personal Income Tax (PIT) discoveries. Since July 1, 2018, the following discoveries have uncovered over $9M in unpaid taxes involving 1,648 taxpayers.

• CP2000 Discovery: A notice containing preliminary findings is mailed to a taxpayer based on information the Internal Revenue Service (IRS) has identified as being under reporters, which information appears to not be considered on the Vermont tax return filed.
• IRMF Non-Filer Discovery: A notice is mailed to the taxpayer when the Department has information that indicates a strong possibility a Vermont Personal Income Tax return should have been filed. The estimated tax liability on the preliminary notice is based on data received from the IRS and other information available to the Department. The preliminary notice indicates the taxpayer needs to file a return or let us know why they believe they do not have a filing requirement in Vermont.
• IMF Non-Filer Discovery: This discovery covers situations where the taxpayer has filed a Federal return, but did not file a Vermont Income Tax. The estimated tax liability on the preliminary notice is based on data received from the IRS and other information available to the Department.bThe preliminary notice indicates the taxpayer needs to file a return or let us know why they believe they do not have a filing requirement in Vermont.

Over the course of the next four months, we will be ramping up to release the following next set of PIT discoveries:

Go back to the Compliance Corner.