Vermont Statutes Title 32 Sec. 5914
Terms Used In Vermont Statutes Title 32 Sec. 5914
- Commissioner: means the Commissioner of Taxes appointed under section 3101 of this title or any officer or employee of the Department authorized by the Commissioner (directly or indirectly by one or more redelegations of authority) to perform the functions mentioned or described in this chapter. See
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Corporation: means any business entity subject to income taxation as a corporation, and any entity qualified as a small business corporation, under the laws of the United States, with the exception of the following entities that are exempt from taxation under this chapter:
- Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
- Person: shall include an individual, firm, partnership, association, joint stock company, corporation, trust, estate, or other entity. See
- Pro rata share: means the portion of any item attributable to an S corporation shareholder for a taxable period determined in the manner provided in, and subject to any election made under, subsection 1377(a) or 1362(e), as the case may be, of the Code. See
- S corporation: means a corporation for which a valid election under subsection 1362(a) of the Code is in effect. See
- tax liability: includes the liability for all amounts owing by a taxpayer to the State of Vermont under this chapter. See
- Taxable period: means any taxable year or portion of a taxable year during which a corporation is an S corporation. See
§ 5914. Returns and mandatory payments
(a) An S corporation that engages in activities in Vermont that would subject a C corporation to the requirement to file a return under section 5862 of this title shall file with the Commissioner an annual return, in the form prescribed by the Commissioner, on or before the due date prescribed for the filing of S corporation returns under 26 U.S.C. § 6072(b). The return shall set forth the name, address, and Social Security or federal identification number of each shareholder; the income attributable to Vermont and income not attributable to Vermont with respect to each shareholder as determined under this subchapter; and such other information as the Commissioner may by regulation prescribe. The S corporation shall, on or before the day on which such return is filed, furnish to each person who was a shareholder during the year a copy of such information shown on the return as the Commissioner may by regulation prescribe.
(b) The Commissioner may upon request and for ease of administration permit S corporations to file composite returns and to make composite payments of tax on behalf of some or all of its nonresident shareholders. In addition, the Commissioner may require an S corporation that has in excess of 50 nonresident shareholders to file composite returns and to make composite payments at the second-highest marginal rate on behalf of all of its nonresident shareholders.
(c) With respect to each of its nonresident shareholders, an S corporation shall for each taxable period be liable for all income taxes, together with related interest and penalties, imposed on the shareholder by Vermont with respect to the income of the S corporation. An S corporation shall declare estimated tax, and shall pay estimated tax, including applicable interest and penalties, on such liability in the manner and at the times specified for individuals in subchapter 5 of this chapter; provided, however, that an S corporation with a single shareholder and a tax liability under this section of $250.00 or less in the prior year, and an S corporation with two or more shareholders and a tax liability under this section of $500.00 or less in the prior year, may file the entire estimated amount on or before the fourth payment date, January 15. As used in this subsection, “estimated tax” means an amount equal to the next-to-lowest marginal tax rate prescribed under section 5822 of this title multiplied by the shareholder’s pro rata share of the income attributable to Vermont.
(d) If interest or penalty is imposed on an S corporation for any underpayment of estimated tax under subsection (c) of this section, no interest or penalty shall be imposed upon a shareholder for underpayment of estimated taxes relating to the shareholder’s pro rata share of the income attributable to Vermont to which the interest or penalty relates. If an S corporation shows to the satisfaction of the Commissioner that interest or penalties have been assessed against it in excess of the interest or penalties that would have been applied against the combined, actual tax liabilities of all nonresident shareholders, the Commissioner shall abate such excess interest and penalties. Nothing in this subsection shall be construed as authorizing a corporation to reduce its estimated tax payments.
(e) Any amount paid by the corporation to Vermont pursuant to this section shall be considered to be a payment by the shareholder of the income tax imposed on the shareholder for the taxable period pursuant to section 5822 of this title. An S corporation shall be entitled to recover a payment made pursuant to this section from the shareholder on whose behalf the payment was made. (Added 1995, No. 169 (Adj. Sess.), § 21, eff. May 15, 1996; amended 1999, No. 119 (Adj. Sess.), § 3a, eff. May 18, 2000; 2005, No. 14, § 3, eff. May 3, 2005; 2005, No. 207 (Adj. Sess.), § 1, eff. May 31, 2006; 2011, No. 45, § 20, eff. May 24, 2011; 2017, No. 73, § 4, eff. June 13, 2017; 2021, No. 105 (Adj. Sess.), § 545, eff. July 1, 2022; 2023, No. 72, § 19, eff. January 1, 2023.)