32 V.S.A. § 5888 — Determination of taxable income and income tax liability under the laws of the United States

For purposes of this chapter, a taxpayer’s taxable income or income tax liability
under the laws of the United States shall be determined by reference to the judicial
decisions and administrative rulings of the United States.
(1) A determination by the United States that establishes the amount of a taxpayer’s taxable
income or income tax liability under the laws of the United States for any taxable
year shall be binding on the taxpayer and the State in calculating the taxpayer’s
liability to Vermont under this chapter. As used in this section, “determination
by the United States” means:
(A) a decision by the Tax Court of the United States or a judgment, decree, or other order
by any U.S. court of competent jurisdiction that has become final;
(B) a closing agreement under 26 U.S.C. § 7121; or
(C) an agreement executed under 26 U.S.C. § 1313(a)(4).
(2) For any taxable year, the payment to the United States by any taxpayer of an aggregate
amount of income tax, whether by withholding or otherwise; whether under a claim of
deficiency, demand or otherwise; and whether under protest or otherwise, shall be
prima facie evidence, for purposes of this chapter, that such aggregate amount, less
any refunds received by the taxpayer from the United States with respect to his or
her income tax payments for that year, constitutes the income tax liability of the
taxpayer for that taxable year under the laws of the United States, and that the items
of income, deductions, exemptions, and credits with respect to which the income tax
liability was calculated are the items of income, deductions, exemptions, and credits
of the taxpayer for that taxable year under the laws of the United States.
(3) For purposes of this section, the affidavit of any U.S. District Director of Internal
Revenue that a taxpayer:
(A) has paid a specified aggregate amount of income tax;
(B) has received a specified amount of refund with respect to the taxpayer’s income tax
payments; or
(C) has paid any amount of tax calculated with respect to specified items of income, deductions,
exemptions, or credits, shall be prima facie evidence of the truth of those matters
set forth in the affidavit.
(4) Notwithstanding any other provision of law:
(A) Any adjustments made to basis or deductions taken under the laws of the United States
in connection with the claiming of a federal tax credit shall also be made for the
calculation of Vermont tax, whether or not such federal credit is available to the
taxpayer in the determination of the amount of the taxpayer’s Vermont tax.
(B) The amount of any Vermont net operating loss shall be available to a taxpayer as a
carryforward in the 10 years following the loss year. (