New FAQs for Small to Mid-sized Businesses with Vermont Resident Owners

Vermont Department of Taxes

UPDATE

FAQs for Small to Mid-size Businesses with Only Vermont Resident Owners

In response to feedback from tax preparers, taxpayers, and form vendors, the Vermont Department of Taxes has issued FAQs for Small to Mid-size Businesses with only Vermont Owners.

This guidance is for Vermont Business Income Tax filers only. These are S-Corporations, Partnerships, and LLCs that file as “pass-through” entities for federal and Vermont income tax. C-Corporations (regardless of size) will always file Form CO-411, the Vermont Corporate Income Tax Return.

As of February 11, 2025, the FAQs include the following:

May my business file the BI-476, Vermont’s short form for business income tax?

If my Vermont business does not qualify for filing Form BI-476, what forms must it file?

What if my third-party software vendor does not support Form BI-476?

My small business qualifies to file Form BI-476. Can it opt to file Form BI-471 instead?

What is the “adjustment due to disallowance of bonus depreciation” referenced in the instructions for Form BI-476?

If my business otherwise qualifies to file Form BI-476, but has a bonus depreciation adjustment, must it file Form BI-471?

Read FAQs: Small to Mid-size Businesses with Only Vermont Resident Owners

The Vermont Department of Taxes will continue to publish additional FAQs on its business income tax form set as the tax season continues. Future FAQs will include discussion of other specific forms, including Schedule BI-477 and Schedule K-1VT.

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