Voluntary Disclosure Agreements
Voluntary disclosure agreements ("VDA") are an effective way to reduce your state and local tax exposure if you should have been filing income or sales tax returns in a state or local jurisdiction but have not done so.
If you have not filed either income or sales tax returns in a state and you should have, we can help. SALT Partners will prepare an anonymous letter on your behalf outlining your facts and we will obtain an agreement on your behalf that will limit the exposure to the state's look back period. Typically we also get all penalties waived. (List of States that we do VDA Agreements)
Here how our VDA process works:
We will meet with you to identify those states that you should have been filing in for both income and sales tax.
We will prepare an anonymous letter on your behalf that provides the state(s) the necessary information they need to consider whether to grant a voluntary disclosure agreement. (Because of independence rules CPA firms may not be able to submit anonymous VDA requests because of audit relationships with their clients. This adds significant risk to the VDA process. SALT Partners is not a CPA firm and therefore we do not have independence restrictions on using anonymous VDA letters for our clients. 0
Once you approve the anonymous VDA letters, SALT Partners will submit the VDA request letter on your behalf.
We will negotiate on your behalf the VDA agreement and, only after you agree to the terms and the state has signed the VDA agreement, will we reveal the identify of your business.
SALT Partners will assist you in filing the past due returns and help you get registered on a going forward basis.
We have filed hundreds of VDA letters for clients and have relationships with all of the states that will accept VDAs.