TAX DEBT RELIEF OPTIONS – Vermont Department of Taxes

M&M Financial has been successfully resolving back tax liabilities for small businesses and individuals in Vermont since 2011 and nationwide since 2005.  We deal with the IRS and State taxing authorities, so you don't have to!  

Below is some information that will help you start resolving your state tax liabilities.  If you have questions and would like to talk to a licensed Tax Resolution Specialist please do not hesitate to call us at 866-487-5624.


The Vermont Department of Taxation prefers Payment Plans to be paid within 12 months or less.  

The state suggests paying as much as possible toward your tax debt before requesting a Payment Plan to reduce the number and amount of your monthly payments.  Additionally, the VT-DOT may require detailed financial statement forms showing your income, expenses, assets and other outstanding debts you may have.  


Offer in Compromise

The Vermont Department of Taxes has the authority to accept an Offer in Compromise to settle an outstanding tax liability for a lesser amount.  To qualify as a candidatefor the Vermont Offer in Compromise – 
  • You should have history of tax compliance other than the tax debt in the Offer, 
  • You may need to pay an initial payment of 5% of the total balance due with your Offer,
  • You have not been granted an Offer in Compromise within the last 60 months
  • You lack equity in assets and lack the ability to pay monthly.  
If you are lucky enough to have your Vermont Offer in Compromise accepted, you have the option of paying your accepted settlement within 30 days or in monthly installments over 36 months.  

Operating businesses are typically not good candidates for the VT-DOT Offer in Compromise.

Penalty Relief

Vermont is like most states and may consider Penalty Abatement if you have Reasonable Cause for your tax accrual.  


The Vermont Department of Taxes has some flexibility when it comes to back tax liabilities.  Each case varies based on factors such as your compliance history, type of tax owed and total amount past due.  Here are some case examples in your state negotiated by M&M.

page last reviewed 1/17/2024

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