Vermont Notice of License Suspension or Revocation
for Tax Delinquency
What This Notice Means
A Vermont Notice of License Suspension or Revocation for Tax Delinquency indicates that the
Vermont Department of Taxes has referred your unpaid state tax debt to your professional or occupational licensing board. This notice means your professional license, occupational license, or business license may be suspended or revoked under Vermont law if you do not resolve the tax debt or demonstrate you are in good standing.
Why You Received This Notice
The Vermont Department of Taxes refers taxpayers with unpaid state taxes to licensing agencies when collection efforts remain unsuccessful. Under Vermont statute 32 V.S.A. Section
3113, the Commissioner of Taxes may request that a licensing board suspend or revoke your license to practice a profession or conduct trade or business if taxes remain unpaid and are not under appeal.
Types of Licenses Affected
Vermont law allows for the suspension or revocation of a permit for the authority to conduct trade or business, including licenses to practice a profession. Professional licenses such as medical, legal, engineering, and accounting licenses are subject to this enforcement action.
Business licenses, occupational credentials, and trade licenses, including those from the
Vermont Fish and Wildlife Department for fishing, hunting, and trapping, may also be suspended under Vermont Statutes. However, the operator’s licenses from the Vermont Department of
Motor Vehicles are not suspended for tax debt under this statute.
Understanding the Process
License suspension for tax debt involves multiple stages and procedural safeguards as required by the Vermont Statutes Online. The Tax Department first sends collection notices by certified mail about your unpaid taxes. If the debt remains unresolved, the Commissioner makes a written request to your licensing board. The licensing board then provides formal notice of suspension and conducts a hearing as required by law before making any decision about your license.
What Good Standing Means
Under Vermont law enacted by the General Assembly, you are in good standing with respect to taxes if no taxes are due and all returns have been filed. You are also in good standing if your tax liability is under appeal or you are complying with a payment plan approved by the
Commissioner. For licensees, the licensing agency may find that requiring immediate payment would impose unreasonable hardship and condition license renewal on terms that place you in good standing as soon as reasonably possible.
Step-by-Step Response Checklist
Step 1: Identify the Notice Source
Determine whether you received a collection letter from the Vermont Department of Taxes or a formal notice of hearing from your licensing board. The licensing board notice indicates formal proceedings have begun under the application process.
Step 2: Review Your Tax Records
Gather all tax returns, payment receipts, and correspondence with the Vermont Department of
Taxes to verify the accuracy of the claimed debt. Check whether you have filed all required returns and made all payments to establish your license status.
Step 3: Determine Your Good Standing Status
Review whether you currently have an approved payment plan, whether your tax liability is under appeal, or whether all taxes have been paid. Being in good standing prevents license suspension under the Suspension and Revocation provisions of Vermont law.
Step 4: Contact the Tax Department
Call the Vermont Department of Taxes Collections section at 802-828-2518 to discuss your tax debt and available options. Ask about payment plans, settlement options, or procedures to dispute the debt if you believe it is incorrect.
Step 5: Respond to Licensing Board Notice
If you received a formal notice of hearing from your licensing board, respond according to the instructions and deadlines provided in that notice. Prepare documentation showing you are in good standing or that the debt is under appeal to satisfy reinstatement requirements.
Step 6: Request a Payment Plan
If you cannot pay the debt in full, request an approved payment plan from the Vermont
Department of Taxes before the licensing board hearing. Compliance with an approved payment plan establishes good standing and prevents suspension of the license under public safety enforcement procedures.
Step 7: Obtain Written Confirmation
Request written confirmation from the Vermont Department of Taxes that you are in good standing once you have paid the debt or established a payment plan. The licensing board requires a certificate of good standing to cancel suspension proceedings and approve license reinstatement.
- Ignoring collection notices: The Vermont Department of Taxes sends multiple
- Missing hearing deadlines: Licensing boards conduct hearings as required under
- Assuming contact stops suspension: Calling the Tax Department or licensing board
- Not following through on agreements: Establishing a payment plan creates good
- Paying without documentation: Sending payment without obtaining a certificate of
- 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
Step 8: Attend the Hearing
If a hearing is scheduled, attend or participate as required by the licensing board’s procedures, even if you have resolved the tax debt. Provide documentation showing payment, payment plan compliance, or appeal status to demonstrate compliance with reinstatement requirements.
Common Mistakes to Avoid collection letters by certified mail before referring your case to the licensing board, and failing to respond allows the matter to escalate to formal license suspension proceedings.
Vermont Statutes, even if you do not respond. Missing deadlines does not prevent the board from making findings and suspending your license, which can affect your license status. does not automatically prevent suspension of the license, and you must follow specific procedures, such as paying the debt or establishing an approved payment plan. standing only as long as you remain in compliance, and missing payments allows the licensing board to resume suspension proceedings, which can affect your privilege to operate your business or practice. good standing from the Commissioner means the licensing board cannot verify your status for license reinstatement purposes, and you may face additional reinstatement requirements.
What Happens After You Respond
The licensing board will review your response and any documentation you provide, which must demonstrate good standing or an appeal status. If you have paid the debt in full and provided a certificate of good standing, the board typically cancels the suspension proceedings. If you established an approved payment plan, the board will not proceed with suspension while you remain in compliance with the plan under Vermont Statutes.
License Reinstatement Process
Any license suspended under this statute cannot be reissued or renewed until specific reinstatement requirements are met. You must obtain a certificate from the Commissioner showing you are in good standing with respect to all taxes payable. The licensing agency will not approve license renewal or reinstatement without this certificate, regardless of whether you have resolved other licensing requirements or completed a background check for your profession.
Frequently Asked Questions
Can I continue working while the matter is pending?
You may continue working under your license until the licensing board issues a final order suspending or revoking your license after the notice and hearing process is complete under
Vermont law.
Does an approved payment plan prevent license suspension?
Yes, compliance with a payment plan approved by the Commissioner establishes good standing under Vermont Statutes, and the licensing board cannot suspend your license if you are in good standing.
How can I get my license reinstated after it has been suspended?
You must obtain a certificate of good standing from the Vermont Department of Taxes and submit it to your licensing agency to satisfy reinstatement requirements before your license can be reissued or renewed.
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.
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