If the Government Makes a Mistake in a Tax Bill Can They Bill For More Later?

Full question:

The town I live in issued our taxes at a rate of (x amount). The town then realized about a month later that they did not issue the taxes at the appropriate rate. They are now issuing a Supplemental Tax Bill to make up the lost revenue. They are requiring the bill to be paid in one month. Is this legal?

  • Category: Taxes
  • Date:
  • State: Vermont

Answer:

The answer will depend on all the circumstances involved, and would probably require a review of all the facts and procedures. However, governments have broad powers when it comes to taxing authority. It is likely they would argue that you haven't suffered a hardship since you weren't entitled to the reduced rate you were originally taxed at. If you wish to pursue the matter, we suggest contacting the taxpayer advocate at the following link for further assistance:

http://www.state.vt.us/tax/advocate.shtml

This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.

FAQs

A supplemental income tax typically refers to additional taxes assessed on income that was not accounted for in the original tax calculation. For example, if a taxpayer receives a bonus or additional income after filing their tax return, they may be subject to a supplemental tax on that amount. This ensures that all income is taxed appropriately, reflecting any changes in income levels.