If you are unable to pay your taxes in full and have received a bill notice that is not being appealed, or is beyond its 60-day appeal period, your debt will be forwarded to Collections.
Please note: If your inability to repay your debt is a direct result of COVID-19, please review the COVID-19 Related Repayment Provisions information.
If you’d like to be set up for automatic payments, use our secure online payment service or learn about our payment options to find out what plan will work for you.
What You Need to Know
- The Department assumes you have the ability to pay unless you contact us.
- Any Vermont refunds you receive will be applied to your debt.
- Any payments due to you for goods provided or services performed may also be applied to your tax debt.
- The Department enters into reasonable payment plans.
- Debts are generally expected to be paid in full within one to two years.
Resolution of a delinquency will consider the taxpayer’s filing and payment history and the type of debt owed.
In addition to accruing interest and penalties, failure to pay your tax bill may result in more serious action by the Department. Please be advised that failure to pay taxes owed by the due date may result in one or more of the following:
- the Department imposing liens on your property;
- posting of your name and debt amount on the Top 100 Delinquent Taxpayer Report;
- court action
- garnishment of your wages by the Department;
- bank levies;
- your business and/or professional license(s) being revoked;
- suspension of your authority to do business; and/or the assignment of your debt to an outside collection agency.
When Your Debt is Assigned to an Outside Collection Agency
The Department’s Collections section will try to contact you in writing (letter or notice) about your tax debt. During the course of the collection process your debt may be referred to an outside collection agency. Common situations where this action might occur include:
- We cannot contact you because we do not have your correct address on file.
- You do not respond to our letters and notices.
- You do not make payment in full.
- You do not enter into a payment plan with the Department.
- You default on the payment plan (miss a payment).
We will attempt to notify you in writing before we assign the debt and authorize the agency to act on the Department’s behalf. If, however, we do not have your correct address, you may not receive our notice.
Once your debt is assigned to an outside collection agency, the Department is no longer actively involved, and you must work with the agency to resolve the debt. Collection agencies use a variety of methods to collect the debt, including correspondence by mail and telephone. Collection agencies usually will offer a payment plan option.
Offer in Compromise Program
Once your debt has become final, the Offer in Compromise program may be the solution for you to consider. If you meet the requirements of the program and your Offer in Compromise Agreement is accepted, you may be able to settle your debt for less than your current balance due.
Warning: Debt Collection Scams
Persons unauthorized by the Department of Taxes may contact you and demand immediate payment of tax debt. Criminals who operate this type of scam are experts in persuasion tactics, often using threats and bullying. If you aren’t sure whether a telephone call or email is real or a scam, hang up or delete the email. Contact the Department’s Collections section to verify if you owe real tax debt and if we have assigned your debt to an outside collections agency. More information is available on identity theft and fraud and how to avoid losing your identity and your money to scam artists.
Information About Liens
If you believe your debt is paid, but the lien has not been released, or if you have a Vermont Department of Taxes’ lien on your credit report that you believe has been paid, we may be able to locate specific details to help you.
We Can Help
If you’re unable to pay your debt, please contact us by telephone at (802) 828-2518, fax (802) 828-5282, or you can send us an email.
You can also contact us by mail at:
Vermont Department of Taxes
P.O. Box 429
Montpelier, VT 05601-0429