Voluntary Disclosure Agreement Washington

The audit division of the OtR Compliance Administration manages the Voluntary Disclosure Program. A voluntary advertising offer may be submitted to any OTR tax auditor, but the power of approval rests with the head of the audit division, the deputy head of the audit division or the audit and tax control conference. The new criteria allow the following companies to qualify for the Voluntary Opening Programme: the Department of Revenue`s (DOR) « enhancements » to its Voluntary Disclosure Program (hereinafter referred to as the « Programme ») were recently discussed. This conversation suggests that businesses that want to take advantage of the benefits of self-reporting have something new. In appropriate circumstances, voluntary disclosure may be beneficial, but the fact is that the eligibility criteria for these benefits have not changed for more than 20 years (see RPM 89-4) and the improvements that came into effect on March 4, 2014 do not offer a new level of discharge. What the improvements bring are more readily available information in one place online, an online application checkbox and the purpose of a formal agreement if DOR accepts a company`s qualification for partial exemption by voluntary disclosure. Whether or not a company uses the online disclosure option, it is likely that it will be reviewed and verified by DOR after being qualified under the program if the amounts disclosed exceed the minimum thresholds. All applications for self-declaration must be submitted through the department`s online application. You will receive confirmation that your application has been received. If the ministry has determined that you meet the voluntary disclosure qualifications, you will be admitted to the program.

The ministry creates a voluntary disclosure agreement that must be signed and returned to the ministry within 30 calendar days of the date of the initial request. If you do not return the signed agreement within 30 days, your application will not be approved and all taxes and interest due may be subject to an extended return period of seven years plus the current year, as well as penalties of up to 39% of the tax due. The temporary expansion of VDA eligibility criteria in Washington provides an opportunity for commercial customers with washington operations that are not currently registered in the state. Any nexus business in Washington that is not currently registered should check the temporary rules for extending the VDA program with a tax advisor and determine whether they should apply for self-filing by November 30, 2020. All applications for self-declaration must be submitted by November 30, 2020 through the ministry`s online application5. .