This conversation discusses Voluntary Disclosure Agreements (VDAs) as a way for businesses to come into compliance with state sales tax requirements. The conversation covers the benefits of VDAs, why businesses should voluntarily disclose sales tax, and the availability of voluntary disclosure programs in every state. The main focus is on the steps involved in the VDA process, including contacting the state, waiting for a response, submitting information, and signing the VDA agreement. This conversation discusses the process of entering...
This conversation discusses Voluntary Disclosure Agreements (VDAs) as a way for businesses to come into compliance with state sales tax requirements. The conversation covers the benefits of VDAs, why businesses should voluntarily disclose sales tax, and the availability of voluntary disclosure programs in every state. The main focus is on the steps involved in the VDA process, including contacting the state, waiting for a response, submitting information, and signing the VDA agreement. This conversation discusses the process of entering into a Voluntary Disclosure Agreement (VDA) with a state tax authority. The conversation covers the steps involved in the VDA process, including the initial request, state response, signing the agreement, providing data to the state, reviewing the tax bill, and making the payment. The conversation also highlights cautionary tales and best practices for successfully navigating the VDA process. The hosts emphasize the importance of working with a tax professional and provide contact information for further assistance.
Takeaways
- Voluntary Disclosure Agreements (VDAs) allow businesses to come into compliance with state sales tax requirements.
- VDAs offer benefits such as waiving historical tax obligations, penalties, and interest.
- Every state has some form of voluntary disclosure program.
- The VDA process involves contacting the state, waiting for a response, submitting information, and signing the VDA agreement. The VDA process involves several steps, including the initial request, state response, signing the agreement, providing data, reviewing the tax bill, and making the payment.
- It is crucial to work with a tax professional who can guide you through the VDA process and ensure compliance with state requirements.
Caution should be exercised when entering into payment agreements, as failure to comply with the terms may result in additional penalties and interest.
- Proper record-keeping and understanding the taxability of sales are essential for a successful VDA process.
Submitting a VDA letter anonymously through a tax professional can help maintain confidentiality and avoid potential issues.
Chapters
00:00 Introduction to VDAs
03:07 Benefits of VDAs
06:57 Why Voluntarily Disclose Sales Tax
10:36 Voluntary Disclosure Programs in Every State
15:25 Steps of the VDA Process
24:46 Signing the VDA Agreement
26:15 Introduction to Voluntary Disclosure Agreements (VDA)
27:02 Step 1: Initial Request
27:46 Step 2: State Response
28:11 Step 3: Respond to the State's Response
29:06 Step 4: Sign and Countersign the Agreement
29:39 Step 5: Provide Data to the State
31:24 Step 6: State Review and Tax Bill
34:05 Step 7: Pay the Tax Bill
36:23 Cautionary Tales and Best Practices
45:27 Submitting a VDA
48:03 Conclusion and Contact Information
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