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Voluntary Disclosure Agreement Texas

However, to be eligible for a VDA, you must make the disclosure before you are subject to a review or review. Send the written request by email to VDA@cpa.texas.gov; or mail to: Texas Comptroller has passed the Texas Sales Tax Amnesty program on the basis of the Senate`s No. 1 law passed in 2017. In accordance with Section 17.11 of the Act, the program is “designed to encourage voluntary reporting by offenders who do not have authorization or who are not registered for a tax or levy managed by the accountant, or for approved tax payers who may have been declared or liable for taxes or additional fees.” Subjects who wish to receive a VDA may have an application for representation filed with the State in order to initiate the proceedings. Once the agreement is approved, taxpayers will be required to submit the corresponding reports and pay taxes that have been voluntarily declared, without paying penalties and interest. Once the reports are processed, the subject receives the signed agreement and a statement of account. VDAs reward voluntary compliance. If you wait for a state to “catch” you to move forward, you don`t really come voluntarily, so the same benefits don`t apply. The Voluntary Information Agreement is a useful tool for managing unpaid tax obligations. While this is true in many situations, it is not the only option. Peisner Johnson is happy to discuss all the state tax issues you have and find the tools that work for your situation.

Companies considering a voluntary disclosure program have options. You can complete and submit your own application 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 an explanation of the applicant`s type of activity, state activity and reasons for the application. This letter may be anonymous or contain the name of the company in advance. If the company`s name is not given in advance as soon as the interim agreement has been signed and a Nexus questionnaire has been completed, if the state believes that the company is eligible for the VDA, the company has 60 days to prepare and transmit return data with payment to the state. The Comptroller`s office reserves the right to refuse the waiver of the penalty and/or interest or to cancel the contract in its entirety if the entity does not comply with the program`s guidelines and procedures. In addition, the reference periods contained in the VDA remain open for future reviews within the statute of limitations. The company must properly declare and pay the tax from the end date of the agreement. Identifying the company as part of the first contact, although purely voluntary, streamlines the process.

After both parties sign the VDA, BART sends the VDA executed with the corresponding notification forms. Tax data and voluntary payment of taxes are due within 60 days, as agreed. Participation in a voluntary disclosure program does not exempt you from any previous tax obligations. However, it will likely reduce your overall tax debt. They are not included in a voluntary disclosure program without having to make an effort. However, the more external resources you rely on, the less you have to do yourself. We help you follow your best option as a payment agreement. Fortunately, the Texas Comptroller of Public Accounts offers a proactive procedure that allows you to meet your government tax obligations. This procedure is called the Voluntary Information Agreement (VDA).

Simply put, voluntary information agreements with states involve companies identifying their potential tax commitments (VAT, income tax or both) and voluntarily paying outstanding debts before the state identifies the company as part of an audit or other public relations. As states become more aggressive in their quest for extra-state taxpayers, this is becoming a bit of a “Beat the Clock!” game. You can also email the request to UP. VDA.requests@cpa.texas.gov.