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November 2, 2018
The South Dakota V. Wayfair Supreme Court decision now requires certain out-of-state vendors to register with the State of Vermont and collect/remit Sales Tax beginning July 1, 2018. We have received several inquiries about the Voluntary Disclosure Program (VDP) whereby the applicant is hoping to postpone the implementation date of this required registration, collection, and remission. The VDP is a program that allows qualifying taxpayers to voluntarily come forward to file and pay required taxes. VDP is not a program that can waive or delay the collection and reporting mandated by legislation. Therefore, it should be expected that any qualifying taxpayer accepted into the VDP, in connection to this court decision, will need to file and pay returns starting with July 1, 2018 and forward.
Did you know you can save yourself money by being proactive in amending your Vermont State Income Tax return? Periodically we receive information from the Internal Revenue Service that reports changes made to a Federal Income Tax return. In many situations we find taxpayers did not amend their Vermont State Income Tax return, when required, which results in additional tax, interest, and penalties being imposed.
1099R -Distributions from Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc. If you receive a distribution from these types of accounts or similar plans, it is important for you to know if the amounts received should be reported as income on your Federal Income Tax return. If the distribution is reportable income, you also need to consider the income when filing your Vermont State Tax return. Any time a taxable distribution is made, a 1099-R form is issued. Please review any 1099-R forms received carefully and refer to information provided by the IRS to determine if you should include this as income on your Federal return.
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.
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.
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