Vermont: Sales Tax Handbook
How to appeal a sales tax audit or penalty in Vermont
In Vermont, the Department of Taxes will frequently audit business sales tax returns and may issue penalties or punishments for tardy filing, incorrect reporting, willful omissions, or other violations. Penalties can range from fines to revocation of your sales tax permit depending on the infraction.
If you disagree with a penalty or ruling made by the Vermont Department of Taxes, you have several options you can pursue in appealing their decision. This page contains basic guidelines for appealing to the Department of Taxes, to an administrative appeal body, and through the courts.
Sales Tax Statute of Limitations in Vermont
In sales tax law, the "statute of limitations" is the maximum amount of time state authorities have to investigate and begin potential audit or prosecution related to a a filed Vermont sales tax return in the event of underpayment, incorrect reportings, etc. The Department of Taxes cannot begin an audit or issue a penalty after this timeframe.
The statute of limitations in Vermont is three years from later of either the return due date or the return filing date. It becomes six years if the tax was understated by at least 20%.
Appealing to the Department of Taxes in Vermont
If you do not agree with a penalty or decision made by the Vermont Department of Taxes, you have the right to file an appeal and ask for reconsideration. In the case of a department appeal, an official petition must be filed with the Commissioner of Taxes within sixty days after notice of determinationTop
Administrative Sales Tax Appeals in Vermont
This district has no administrative appeal bodyTop
Judicial Sales Tax Appeals in Vermont
If all other appeal avenues fail, businesses can make a final appeal in the state court system. When working with judicial appeals, the suit must be filed with the Superior Court within thirty days after decision or action of Commissioner
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