Voluntary Disclosure Agreements

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 PeriodNumber of States
3 Years30
4 Years9
5+ Years8 (CA, MN, NV, MT, HI, IA, AK, DE)
Variable4 (NM, ND, MD, AZ)

Form of Application

Method of ApplicationNumber of States
Pre-printed Form14
Form Plus Additional Requirements3
NV - Form, Estimate, Registration, Fee
NM - Managed Audit Application
WY - Form, Estimate, Signed Agreement

Waiver of Penalties

Method of WaiverNumber of States
Included in the Voluntary Disclosure Agreement43
Must Be Requested8
CA - Online
IL - Petition
MD - Negotiable
NM - Managed Audit
Hawaii - Case by Case
AK - Discretionary
ID - Discretionary
SD - Discretionary

Waiver of Interest

Availability of WaiverNumber of States
No Waiver44
WaiverFully - 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.