By expanding their multi-state footprint, companies may have created physical exposure due to compounding and unfulfilled tax reporting obligations. To support your compliance goals, we have a team dedicated to voluntary disclosure agreements. As part of this process, our voluntary VAT data disclosure team provides the following services: Virginia Department of Taxation Voluntary Disclosure Program P. O. Box 5640 Richmond, VA 23220 or call: 804.225.3560 E-Mail Once the account is complete, the insured has 15 days from the termination date to transfer the payment by for the tax debt due for the contractual period and interest due for the contractual period. Once the payment has been received by the service, the designated auditor sends the secure e-mail agreement to the subject or a duly designated representative of the subject. There are several pitfalls that a company should follow when it has a voluntary disclosure agreement. The subject must come forward and request the VDA from a Member State before receiving requests, communications or audit notices from the State concerned. Some states limit these requests, communications or audit communications to the specific nature of the disclosed tax, while others extend it to all state-administered taxes.

This is the most common misunderstanding about voluntary disclosure agreements. The key is that it is a “voluntary” confession… If the state contacts you on its own about certain tax breaches, the state does not see things as you voluntarily register. Specific rules vary from state to state, but voluntary disclosure of VAT by a VDA is generally a great way to ensure that your business complies with the IRS. If, for fear that your non-registration may not be reported, you have objected to the voluntary VAT advertising program, you should be aware that the information you provide under a VDA program cannot be used by law against you, unless you violate the terms of the VDA. Participation in a voluntary disclosure program does not exempt you from any previous tax obligations. However, it will likely reduce your overall tax debt. If a company`s voluntary disclosure agreement or VDA is accepted, there are strict deadlines for obtaining all the benefits of the Voluntary Disclosure Agreement program.

Keep in mind that a voluntary disclosure agreement is a legal agreement between the company and the state. Therefore, there are very clear results that need to be provided by the company, as well as a rigorous schedule as to when these items should be made available. Like almost everything in revenue and usage tax, these deadlines vary from state to state, but an experienced VAT advisor will know these deadlines and will be assured that his client will meet them. A taxpayer with a potential tax burden in more than one state will realize that this service is faster, more efficient and less expensive than approaching each state individually. Participation in the MVDP is not billed to the taxpayer. State revenue/use tax and income/franchise tax (including Hawaii`s GET and Washington`s B-O tax) are the types of taxes that are generally subject to a voluntary disclosure agreement (VDA).