Vermont Unfiled Sales Tax Returns Checklist
Introduction
Vermont requires businesses and specific individuals to file sales and use tax returns according to the schedule assigned to their Vermont Department of Taxes account. A return can be considered unfiled if it is not submitted by the due date, even if no sales or use tax is due for that period.
Unfiled returns create a compliance gap that places an account at risk for collection action.
Understanding how Vermont handles unfiled sales and use taxes helps businesses in the Green
Mountain State address the issue before enforcement escalates.
What This Notice Means
An unfiled sales and use tax return means a required state filing for a monthly, quarterly, or annual period was not submitted through the myVTax portal or other approved method. The
Department of Taxes records the period as missing, regardless of whether taxable sales occurred.
This is a filing issue, not an immediate assessment of tax owed. Even remote sellers, marketplace facilitators, or out-of-state sellers with economic nexus or physical presence may have filing obligations under Vermont sales tax law.
Why The State Sent This Notice
The Vermont Department of Taxes uses filed returns to track taxable sales, apply tax rates, and verify tax compliance. When a business holds a sales tax permit or a Vermont seller’s permit, the state expects a return for every assigned filing period.
Missing tax filings prevent the state tax authority from confirming whether sales and use taxes were reported correctly. This triggers notices intended to bring the account back into compliance before stronger collection measures are used.
What Happens If You Ignore This Notice
If unfiled returns remain unresolved, the Department of Taxes may assess penalties and interest under Vermont law. Continued noncompliance can lead to estimated assessments, collection action, or enforcement affecting the sales tax license.
Vermont may also move to suspend or revoke a seller’s certificate after notice and a hearing.
Ignoring notices increases the risk of escalation and limits available resolution options.
Checklist: What To Do After Receiving This Notice
Step 1: Identify missing filing periods
The business should log in to the myVTax portal and confirm which sales and use tax periods are marked unfiled. Assigned filing frequency, such as file monthly or quarterly, should be verified.
Step 2: Gather sales and tax records
Records showing gross receipts, taxable sales, exemption certificates, and use tax activity should be organized by period. Payment confirmations and prior submissions should also be collected.
Step 3: Confirm account details with the Department of Taxes
If uncertainty remains, the business should contact the Vermont Department of Taxes to confirm unfiled periods and account status. Providing the Employer Identification Number or other identifying information helps locate the account.
Step 4: Prepare the required returns
Each missing period should be prepared using Form SUT-451 or the electronic equivalent.
Returns must reflect accurate sales and use tax information, including zero activity when applicable.
Step 5: Review whether payment is due
Before filing, the business should determine whether taxes, penalties, or interest remain unpaid.
Prior payments should be matched to the correct filing periods.
Step 6: File all outstanding returns
Outstanding returns should be submitted through the myVTax portal. Confirmation pages should be saved to document successful tax filings.
Step 7: Address any balance due
If a balance exists, payment options should be reviewed with the Department of Taxes. Timely payment or an approved arrangement helps prevent further collection action.
- State enforcement notices and responses
- Sales tax audits, assessments, and collections
- Payroll & trust fund tax enforcement issues
- Penalty and interest reduction options
- Payment plans and state tax relief eligibility
- Representation before state tax agencies
Step 8: Monitor compliance going forward
After filing, the account should be checked to confirm that each period is processed. Future filing deadlines should be tracked to maintain ongoing tax compliance.
Common Mistakes To Avoid
Many businesses assume that no taxable sales means no filing requirement, which often leads to unnecessary penalties. Vermont may impose minimum failure-to-file penalties even when no tax is owed.
Another standard error is using incorrect forms or failing to file through approved systems, such as the myVTax portal. Misunderstanding filing obligations can delay resolution and increase enforcement risk.
Frequently Asked Questions
How can a business tell if returns are unfiled?
The myVTax portal usually shows missing periods, and the Department of Taxes may issue notices identifying unfiled returns. Direct confirmation can also be requested from the state.
Does filing unfiled returns automatically stop penalties?
Filing is required to resolve the issue, but penalties and interest may still apply. Filing allows the
Department of Taxes to accurately calculate amounts.
Are remote sellers required to file Vermont sales tax returns?
Remote sellers and marketplace facilitators may have filing obligations if they meet economic nexus thresholds. Physical presence is not required for a filing obligation to exist.
Can unfiled returns be amended later?
Yes, Vermont allows amended returns if errors are discovered. The Department of Taxes provides procedures for correcting previously filed information.
What if the business believes sales tax is not required?
The business should contact the Department of Taxes and provide documentation supporting its position. Nexus analysis and transaction details are often reviewed.
Closing
Unfiled sales and use tax returns represent a manageable compliance issue when addressed promptly. By identifying missing periods, filing accurate returns, and communicating with the
Vermont Department of Taxes, businesses can reduce penalties and enforcement risk.
Ignoring filing obligations only increases cost and complexity. Timely action helps restore compliance and keeps state tax matters from escalating further.
Facing State Enforcement Action?
If you’ve received a notice related to sales tax or payroll tax enforcement, and aren’t sure how to respond, our team can help you understand your options and next steps.
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