Voluntary Disclosure Agreement

Let`s start by determining if you need to sign up for any status. Then, through a Voluntary Advertising Agreement (VDA), we will work on your behalf to negotiate lower taxes, penalties and interest. Self-denunciation. The solution to the dilemma may be an administrative procedure known as self-declaration. In this process, a taxpayer who is clearly subject to the fiscal sovereignty of a state, but who has not submitted or paid taxes, can voluntarily apply to the state if he has the right to negotiate an agreement covering all the obligations of the company. The retrospective period includes the full pre-declaration periods, for which a taxable person who requests a self-declaration exemption must normally file returns and pay the outstanding tax debt plus interest in return for the State`s renunciation of the tax debt during periods preceding the retrospective period and penalties. The retrospective period also covers the current incomplete registration period, the tax return of which must be filed in good time and paid for tax purposes on the due date. For more information about the lookback period, see “What is the lookback period and how is it determined?” in “Frequently Asked Questions”. A list of lookback periods for participating states is available under “Lookback periods for states participating in the nexus national program” and “Sales/Use Tax Lookback Periods for Taxpayers with Economic Nexus Only”. They will not be included in a volunteer program without making an effort. However, the more you rely on external resources, the less you have to do it yourself. Confidentiality rules are dealt with in the multi-state self-declaration procedures, paragraphs 6 and 7. The Commission shall treat the identity of the applicant confidentially during the self-declaration procedure.

The Commission will only disclose the identity of an applicant to a State after the applicant has entered into a VDA with that State. Pending the signing of such an agreement, the applicant shall be known to that State only by his or her case number assigned by NNP staff. The Commission does not disclose the VDA or any of its conditions to any other State. A requester does not need to disclose information that would reveal their identity before running a VDA. Secure emails are available to send confidential taxpayer information. If companies expand their presence in multiple states, they may have created significant risk due to compound interest obligations and unmet tax returns. To support your compliance goals, we have a team dedicated to voluntary disclosure of agreements. As part of this process, our VAT self-declaration team provides the following services: Note. Maintaining the anonymity of the taxpayer until an agreement is reached is essential. Therefore, the tax advisor should at no time inform the tax officer of the identity of the taxpayer until an acceptable agreement has been fully negotiated and accepted by the taxable person.

Specific rules vary from state to state, but voluntary sales tax disclosure by a VDA is usually a great way to make sure your business is IRS compliant. If you have objected to the voluntary VAT disclosure program for fear that your under-reporting will be considered criminal, you should be aware that the information you provide as part of a VDA program cannot be used against you by law – unless you violate the VDA terms. Participating in a volunteer program does not exempt you from all previous tax debts. .

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