Vermont Code § 32 V.S.A. § 5855

Payments as tax liability
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§ 5855. Payments as tax liability
(a) Any payment of estimated tax required to be made under the provisions of this subchapter
shall be deemed to be a tax liability for the purposes of this chapter. All of the
provisions of this chapter, including the provisions governing interest and penalties
for nonpayment of tax liabilities, liens, levies, and appeals, shall apply to underpayments
of estimated tax except as such provisions conflict with the express provisions of
this subchapter.
(b) No interest or penalty shall be assessed for underpayment of estimated tax for any
taxable year if:
(1) the tax shown on the return for such taxable year (or, if no return is filed, the
tax), reduced by the amount deducted and withheld for the taxable year under subchapter
4 of this chapter, is less than $500.00; or
(2) the preceding taxable year was a taxable year of 12 months and the taxpayer did not
have any liability for tax for the preceding taxable year.

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