Tennessee Voluntary Disclosure Agreement

Participation in a volunteer agreement (VDA) may be something you should consider if you haven`t signed up to collect in a state where you should have it. But is a VDA what you need? In talking with our customers, we know that there are a lot of questions regarding VDAs. To answer some of these questions and help you decide if a VDA is right for you, read on to unmask four common misunderstandings about VDAs. Businesses considering a self-reporting program have options. You can complete and submit the application yourself or work with a professional who can help you navigate the process and prepare a VDA. Most applications are 2 to 3 pages long and require explanations of the nature of the applicant`s activity, the activity in the state and the reasons for the application. A volunteer agreement is a written agreement between the ministry and a potential taxpayer. This agreement: A voluntary advertising contract is a legal agreement between a state tax authority and a company that acknowledges that it has not fulfilled its obligations with respect to sales and use tax compliance. The voluntary disclosure agreement will allow the company to enter into all necessary internal registrations and fulfill all outstanding tax liabilities.

In the future, once the Voluntary Disclosure Agreement program is concluded, the company will have regular monthly, quarterly or annual VAT reporting obligations with the state, depending on the importance of the activity within the state. A VDA is a binding agreement between a taxable person and a state that aims to promote compliance with the state`s tax laws. Typically, INNs reduce or waive penalties, limit the retrospective period (the period during which a state can make a taxable person liable for unpunished taxes), and provide some protection to taxpayers who proactively disclose past tax obligations, pay what they owe, and comply with the state`s tax laws. There are several pitfalls that a company should respect when opening a volunteering agreement. The taxable person must present himself and request the VDA from a State before receiving requests, communications or audit opinions from the State concerned. Some states limit these audit requests, notifications or notifications to the specific type of tax disclosed, 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 » welcome. If the state turns to you to contact you about certain tax defects, the state does not consider this to be voluntarily declared.

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: Specific rules vary from state to state, but self-declaration of VAT through a VDA is usually a good way to ensure that your business matches the IRS…