Vermont Final Notice of Intent to Levy or Enforce Checklist
What This Notice Means
A Vermont Final Notice of Intent to Levy or Enforce is a formal announcement that the Vermont Department of Taxes plans to take collection or enforcement action against you if your tax debt remains unpaid. This notice appears after other collection attempts have failed, signaling that the state is preparing to pursue aggressive enforcement collection methods. Understanding what this notice means and how to respond will help you take control before collection actions begin.
Why the State Sent This Notice
Vermont sends this notice when a tax liability remains unpaid after the initial notice of assessment, demand for payment, and follow-up tax collection letters have been sent. The state issues this notice when the taxpayer has ignored earlier collection letters, failed to establish a payment plan, or breached an existing payment arrangement. This notice represents the final step before the Collection Division begins actual collection enforcement.
What Happens If You Ignore This Notice
If you do not respond to this notice, the Vermont Department of Taxes will proceed with levy action. This may include wage garnishment, bank account levies, property liens, or offset of future tax refunds. These enforced collections can occur after the notice period expires and remain in place until the debt is paid or a resolution is reached. The state may also refer your debt to outside collection agencies.
Understanding the Notice and Your Rights
This notice serves as your Final Notice of Intent to Levy Wages and other assets under Vermont law. The Vermont Commissioner of Taxes has authority under the Vermont Statutes Online to pursue collection or enforcement action after providing proper notice. You have specific rights under Collection Due Process rules to contest the levy and request alternative payment options before enforcement begins.
Checklist of Steps to Take After Receiving This Notice
Follow these steps after receiving a Vermont Final Notice of Intent to Levy or Enforce.
Step 1: Review the Notice for Accuracy
Check that the tax year, tax type, and amount owed match your records and verify that the name and address belong to you. Look for the specific deadline by which you must respond and keep the notice in a safe place for your records.
Step 2: Gather Your Tax Information
Find your original tax return for the year in question and collect payment records or proof of previous payments toward this income tax debt. Gather documentation of any communications you had with the state about this debt, and locate copies of filed returns, if applicable.
Step 3: Calculate Your Total Outstanding Debt
Note the principal tax amount shown on the notice and add any penalties and interest listed. If you have made partial payments since the original tax liability, calculate how much remains unpaid and write down the total amount you currently owe.
Step 4: Contact the Vermont Department of Taxes Before the Deadline
Call the Collections Unit at 802-828-2518 during business hours with your notice, Social Security number or taxpayer identification number, and tax information ready. Explain your situation clearly and listen to what payment options the Department describes. Ask specifically about payment plans, hardship relief, or other available arrangements for tax resolution.
Step 5: Request a Payment Plan or Installment Agreement
Ask the Department about setting up an IRS Payment Installment Plan or similar state payment arrangement that fits your budget, and find out what monthly payment amount the state requires. Confirm whether the plan prevents levy action from occurring and ask for written confirmation of any agreement you reach through the payment service.
Step 6: Explore Other Options If You Cannot Pay
Ask whether you qualify for an Offer in Compromise if you genuinely cannot pay the full amount or if repayment will create economic hardship. Inquire about penalty abatement if penalties have significantly increased your debt, and request that the Department explain each tax resolution option in writing.
Step 7: Submit Your Response in Writing
Write a letter stating your name, Social Security number, tax year, and amount owed, along with your plan to resolve the debt. Include documentation supporting your request and send your letter to the address listed on the notice via certified mail with return receipt requested. Keep a copy of everything you send.
Step 8: Send Any Payment Agreed Upon
If you agreed to make a payment, send it by the agreed-upon date and include your name, Social Security number, and tax year on any check or payment. Send payment to the address specified by the Department and keep a record of the payment date and amount.
Step 9: Follow Up If You Do Not Receive Confirmation
Wait at least two weeks after sending your response, and then call the Department to confirm they have received your letter and payment. Request a confirmation number or reference number and ask for written confirmation of any arrangements you have made.
Step 10: Keep Making Payments as Agreed
Mark your calendar with each payment due date and send each payment on time while keeping proof of payment. If you are unable to make a payment, please contact the Department immediately to explain the situation and maintain written records of all costs for your records.
When to Consider Professional Help
If you feel overwhelmed by the collection process or need assistance negotiating with the Vermont Department of Taxes, consider contacting a tax resolution professional. A Tax Resolution Specialist can help you understand your rights, negotiate payment options, and represent you in discussions with the Collection Division. Professional assistance may be particularly valuable if you face complex tax liability issues or need help preparing an Offer in Compromise.
Common Mistakes to Avoid
Failing to respond by the stated deadline allows the state to proceed directly to levy action and enforcement measures.
● Assuming the debt will disappear if you wait: Vermont collection efforts will continue and escalate while interest and penalties continue to accrue on your unpaid balance.
● Sending payment without identifying information: Always include your name, Social Security number, and tax year so the payment is credited correctly to your account.
● Failing to keep copies of communications: Documentation protects you in the event of a later dispute about what was agreed upon or what payments were made.
● Failing to follow through on payment plan arrangements: Breaching a payment plan agreement can trigger immediate levy action and result in additional enforcement measures.
Closing
Receiving a Vermont Final Notice of Intent to Levy or Enforce is stressful, but you still have options. The notice alerts you that action is coming, so you have time to respond. Taking action immediately by contacting the Collections Unit at 802-828-2518, discussing your situation, and establishing a plan typically prevents levy action. Responding promptly and following through on any agreement will help you resolve this tax liability.
Received a State Tax Notice?
If you’ve received a state tax notice and aren’t sure how to respond, we can help you review your options and next steps.
We offer:
- State tax notice review and response
- Penalty and interest reduction options
- Payroll and trust fund tax assistance
- Payment plan and relief eligibility review
- Representation with state tax agencies
Get professional help today: (888) 260-9441
20+ years experience • Same-day reviews available
This checklist is for educational purposes only and does not constitute tax or legal advice. Always review official IRS instructions and consult a qualified professional for guidance
