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Terms Used In Vermont Statutes Title 32 Sec. 7473

  • Commissioner: means the Commissioner of Taxes appointed under 3 V. See
  • following: when used by way of reference to a section of the law shall mean the next preceding or following section. See
  • Taxpayer: means the executor of an estate, the estate itself, the donor of a gift, or any person or entity or combination of these who is liable for the payment of any tax, interest, penalty, fee, or other amount under this chapter. See

§ 7473. Allocation of payments

(a) Any payment received by the Commissioner from any taxpayer with respect to a tax liability of the taxpayer may be applied to any tax liability in the following order of priority, notwithstanding any direction by the taxpayer to the contrary:

(1) first, against any portion of any tax liability initially incurred with respect to a preceding taxable year, with the portion incurred with respect to the earliest preceding taxable year to be satisfied before any portion incurred with respect to any succeeding taxable year; and

(2) next, against any portion of any tax liability incurred with respect to the current taxable year.

(b) As to each portion, the payment shall be applied as follows:

(1) first, to the amount of any interest;

(2) next, to the amount of any penalty;

(3) next, to the amount of any fee; and

(4) next, to the amount of any unpaid tax, incurred with respect to the taxable year. (Added 1969, No. 269 (Adj. Sess.), § 1, eff. date, see note under § 7401 of this title; amended 2021, No. 105 (Adj. Sess.), § 560, eff. July 1, 2022.)