Voluntary disclosure can help mitigate or eliminate back tax obligations
If you find your organization has a tax presence in a state where you haven’t been filing, we can help you negotiate a voluntary disclosure agreement (VDA). A VDA is one of the easiest and least costly ways to become compliant with a state’s income, franchise, gross receipts, and sales and use taxes.
We keep your identity anonymous while we negotiate with state tax authorities. A negotiated agreement usually results in payments significantly less than the unreported tax liability due to limiting the look-back period. A typical look-back period is three to four years; however, if a state discovers the taxpayers first, it may go back to all years the taxpayer was doing business in the state. In most cases, we are able to eliminate non-filing penalties. In some, we are also able to eliminate interest.
Should you consider voluntary disclosure?
Our team of state tax experts will help you determine if your organization should consider a VDA. We will help you determine whether activities that took place in the state require you to file, the type of taxes your organization will be subject to, and what periods to include in a VDA request.
If it is determined that you should initiate a voluntary agreement, you will benefit from our experience and our relationships with individuals at state taxing authorities across the nation.
As states enhance their discovery efforts through advances in technology and communication with the IRS and tax authorities in other states, more and more businesses are getting surprised by big bills for unpaid state taxes.
We can help you avoid that often costly surprise by negotiating a voluntary disclosure agreement (VDA).
Our state and local tax offerings include:
- Michigan Business Tax
- Ohio Commercial Activity Tax
- Multi-state income and franchise tax
- Sales and use tax
- FIN 48
- Property tax
- Credits and incentives
- Michigan Film Incentives
- Audit defense and controversy resolution
- Voluntary disclosure