VT Tax Updates

Extension Filers: Oct. 17 is Your Deadline
If you filed an extension, your final filing due date this year is October 17 for the following returns and claims:
  • IN-111 Vermont individual income tax return and any related forms
  • HS-122, Section A: Homestead Declaration
  • HS-122, Section B: Property Tax Adjustment claim (with HI-144)
  • PR-141 Renter Rebate claim (with HI-144 and LC-142)
  Regarding the Homestead Declaration:
  • The Homestead Declaration due date was April 18. Late filed declarations are accepted until October 17, but will be charged a late filing penalty by the municipality up to 8% of the corrected education tax.
  • The Tax Department may also charge a late filing fee of $15.
  • If you fail to file the declaration by October 17, your property will be classified as nonresidential in which case you must pay the higher of the two rates, a penalty, and any additional property tax and interest due.
Refer to our website for more details.  
Keep Your Forms Current
Visit our website for forms and instructions
Before you file, always check our website for the most up-to-date forms. All of the forms and instructions you need to file tax returns for tax year 2015 are available on our website. They are available as a fillable PDF to download and complete on your computer and mail in for more accurate processing. Paper copies may be ordered online. 

Making Estimated Payments with the Correct Voucher 
The easiest way to make estimated payments is using an ACH debit transaction via ourVTPay site. If you file using paper, be sure to enclose the estimated payment voucher, IN-114, with the check. This ensures accurate application of the check to the account.

Voluntary Collection Agreement with Airbnb
The Department of Taxes is pleased to announce an agreement with Airbnb to collect the Vermont Meals and Rooms Tax on payment for lodging offered by its hosts. As of Oct. 1, 2016, Airbnb is collecting and remitting the meals and rooms tax on behalf of its hosts. Refer to our press release for more details. In addition, Airbnb will be collecting the 1% local option tax in municipalities which have this tax.

If you rent your property on a site other than Airbnb and have not been collecting the meals and rooms tax, you should contact the Department at 802-828-2551. Between now andNov. 1, 2016, we are offering a come forward program. If you register with us before that time, you will not be liable for any back meals and rooms taxes owed. 

Agricultural Machinery, Equipment, and Supplies
Act 100 of 2016 changed the exemption around agricultural machinery and equipment. The phrase "directly and exclusively" was changed to "predominately," defined as 75% or more of the time the equipment is in use.

The exemption available to agricultural and horticultural entities for machinery and equipment is a use-based exemption. That means that items available under the exemption are only available as exempt if the purchaser will use the equipment 75% or more of the time for exempt uses. This declaration is made at the time of purchase by filling out Form S-3A, Agricultural Fertilizers, Pesticides, Supplies Machinery & Equipment.

For more information, please see our fact sheet on this topic, the Sales and Use Tax Regulations, and the FAQs on our website. 
Withholding Tax Reminders for Employers
If you haven't yet done so, be sure to file your tax year 2015 withholding tax reconciliation, Vermont Form WHT-434, with W-2s. You can easily file your return in myVTax.

Please note: the due date for the reconciliation for tax year 2016 will be Jan. 31, 2017. This is a month earlier than prior years. Sec. 12 of Act 134.     
Tax Scams and Mail Fraud
We cannot stress this enough: remain alert to tax scams and try to prevent identity theft!
  • Refer to our website for more details on what to do
  • Invite your colleagues and friends to receive our e-newsletter updates
  • Subscribe to IRS email news releases as well
Fake emails containing an IRS tax bill of form CP2000 
Be on guard against fake emails that contain an IRS tax bill related to the Affordable Care Act. Scammers have sent a fraudulent version of CP2000 notices for tax year 2015 to some taxpayers. The scam involves an email that includes a fake CP2000 as an attachment.
However, the CP2000 is a notice commonly mailed to taxpayers through the United States Postal Service. It is never sent as part of an email.

The issue has been reported to the Treasury Inspector General for Tax Administration for investigation.

Mail Fraud Schemes

The Department of Justice is cracking down on mail fraud schemes targeting vulnerable Americans with promises of easy riches and good fortune. Among the promises:
  • Lottery winnings, prize winnings, psychic messages, advance-fee schemes, work-at-home ventures, the list goes on and on
  • Most recently, scammers have asked victims to take a check they send and deposit it  directly into the scammer's account with a blank deposit slip they also supply. Victims may be more likely to fall for this because the in-person banking aspect adds an air of legitimacy to the set-up
Here's what you can do:
  • Report suspicious pieces of mail: the National Consumers League is getting involved and has a site for filing a complaint about suspicious mailings
  • Link to other fraud reporting sites through the Department of Justice
Is Your District Unifying Under Act 46?
Lots of questions come up when your district considers unifying. Learn more about Act 46 of 2015 and what happens to the homestead education property tax rate in towns where a merger will become operational by July 1, 2017. See our fact sheet and website section on this subject.

New Fact Sheets
Vermont Department of Taxes, 133 State Street, Montpelier, VT 05633-1401