What is a Formal Ruling?
A Formal Ruling is the Department’s written response to your written request for an explanation of how Vermont tax law applies to your proposed personal or business transaction.
Formal Rulings are binding on the Department, but only with respect to current law and the requesting person and the facts you present. If the facts are inaccurate or incomplete, or the law changes before the proposed transaction occurs, the ruling is not binding on the Department.
The Department will not issue a Formal Ruling on an issue which is currently under audit or the subject of an appeal or litigation.
How to Request a Formal Ruling
To request a Formal Ruling, you must provide this information:
- The taxpayer’s name, phone number and mailing address.
- A Power of Attorney, if requesting on behalf of a taxpayer, and a description of your relationship to the taxpayer.
- Your tax question and all facts pertinent to your request.
Send your written request for a Formal Ruling to:
Attn: Clerk of the Department / Rulings
Vermont Department of Taxes
133 State Street
Montpelier, VT 05633-1401
Publication of Formal Rulings
Formal Rulings are confidential.
Since Formal Rulings may provide general guidance to others in similar tax situations, the Department may publish redacted versions of Formal Rulings in our searchable Formal Rulings archive on the Department Website.
A Formal Ruling will only be made public after deletion of the taxpayer’s name and all other identifying information. You will be sent a draft of the proposed redacted version of your ruling. You may then within 30 days request that the Commissioner delete further information that might identify you or your business. The Commissioner has final discretion regarding deletions.
Appeal to Superior Court
You may appeal a Formal Ruling within 30 days of its issuance to the Superior Court.