The Vermont Department of Taxes has issued a press release informing taxpayers that errors in the coding of certain commercial software packages for tax year 2015 personal income taxes may have affected taxpayers who itemized their deductions. The errors involved tax changes in 2015 that were found on Form IN-155, including an addback of any deduction on the federal return for state and local income taxes (Part A) and a cap on the amount claimed for certain other deductions (Part B).
Taxpayers who itemized and used commercial software to prepare their own returns can:
— check to see if their particular product is listed on the department’s website www.tax.vermont.gov.
— review the Vermont return to see if it included the IN-155 form and whether both Parts A and B were completed.
The Department will assist affected taxpayers in filing amended returns and in paying any additional taxes, and also will waive interest and penalty for amended returns and payments received on or before June 30, 2016. The Department will also waive penalties until October 15, 2016 and send bills to address uncorrected returns after January 1, 2017, at which time, both penalties and interest may apply. Further, the Department will coordinate with software vendors and tax preparers to streamline their processes to make it easier for customers.
Taxpayers are advised to call their software vendor or preparer for any information required to amend their return. The Department will not have a complete set of return information until late in the year and thus will be unable to provide individual assistance. However, taxpayers can access FAQs on the Department’s website at www.tax.vermont.gov.
Vermont Department of Taxes Offers Help for Taxpayers Impacted by Commercial Software Errors, Vermont Department of Taxes, May 16, 2016