What is a Voluntary Disclosure?
And Who Needs One?
A Voluntary Disclosure Agreement is a legal process by which a company may voluntarily disclose
its status of noncompliance with the taxation regulations of a governing body, in the hopes of having
the lookback period limited and penalties and interest waived on overdue taxes. The company must apply
for a Voluntary Disclosure Agreement before falling under audit by the particular governmental department.
Many States have a formal Voluntary Disclosure Process, while others take each VDA on a case-by-case basis.
Voluntary Disclosures can be an intimidating prospect.
Thomas Lynch & Associates has successfully navigated the Voluntary Disclosure
process for numerous companies. The intricacies of each state's taxation of
telecommunication services makes the Voluntary Disclosure process complex to be sure.
However, with the help and experience of Thomas Lynch & Associates, you can find your
way to tax compliance.
Statistics on Voluntary Disclosure Agreements in All 50 States + DC
Lookback Periods by State
|Lookback Period||Number of States|
|5+ Years||8 (CA, MN, NV, MT, HI, IA, AK, DE)|
|Variable||4 (NM, ND, MD, AZ)|
Form of Application
|Method of Application||Number of States|
|Form Plus Additional Requirements||3|
NV - Form, Estimate, Registration, Fee
NM - Managed Audit Application
WY - Form, Estimate, Signed Agreement
Waiver of Penalties
|Method of Waiver||Number of States|
|Included in the Voluntary Disclosure Agreement||43|
|Must Be Requested||8|
CA - Online
IL - Petition
MD - Negotiable
NM - Managed Audit
Hawaii - Case by Case
AK - Discretionary
ID - Discretionary
SD - Discretionary
Waiver of Interest
|Availability of Waiver||Number of States|
|Waived||Fully - 1 (TX)|
Half - 1 (OK)
Discretionary - 5 (IL, MD, NV, NM, SD)
*Information above provided in a presentation on Voluntary Disclosure Agreements by Thomas Lynch, Esq. at the 2014 Telestrategies'
Communications Taxation Conference. The information may have changed since it was presented.
Contact Our Voluntary Disclosure Agreement Attorneys
If you need assistance in applying for a Voluntary Disclosure Agreement
or would like to find out more information about the VDA process
contact our law offices
in the Washington, DC metro area to speak with
an experienced lawyer.
The law offices of Thomas Lynch & Associates provides legal advice to telecommunications
businesses throughout the United States, including
Washington, DC, New York, Los Angeles, San Jose
and Palo Alto.