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 Period | Number of States |
|---|---|
| 3 Years | 30 |
| 4 Years | 9 |
| 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 |
|---|---|
| Pre-printed Form | 14 |
| Pleading/Letter | 34 |
| 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 |
|---|---|
| No Waiver | 44 |
| Waiver | 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.