Texas Voluntary Disclosure Agreement

Terminated By Mutual Agreement
December 18, 2020
The Four Agreements Speak With Integrity
December 18, 2020

Voluntary disclosures, by their very nature, provide support from an advisor. If a company wishes to remain anonymous, it must use a third party to help. Since each state has different lookback periods, different rules for coverage and sometimes specific nuances when completing the paperwork, it`s also helpful to have someone on your side who has some experience in the process. How about more than 20 years of experience? Even better! Our consultants have dealt with VDAs in states across the country and we know the ins and outs of different shades. Plan a conversation with us today to see if we can help you with your general tax analysis of the state and if VDAs might be the best way to address unreported commitments! [1] Tax Amnesty, Texas Comptroller of Public Accounts (21 April 2018), comptroller.texas.gov/tax-amnesty/. Participating in a Voluntary Disclosure Agreement (VDA) may be something you should consider if you have not registered to bring it together in a state where you should have it. But is a VDA for you? In talking to our clients, we know there are a lot of questions about VDAs. To answer some of the questions and help you decide if a VDA is right for you, keep reading to see four common misunderstandings about VDAs. Simply put, voluntary information agreements with states involve companies identifying their potential tax commitments (VAT, income tax or both) and voluntarily paying outstanding debts before the state identifies the company as part of an audit or other public relations.

As states become more aggressive in their quest for extra-state taxpayers, this is becoming a bit of a “Beat the Clock!” game. They are not included in a voluntary disclosure program without having to make an effort. However, the more external resources you rely on, the less you have to do yourself. VDAs reward voluntary compliance. If you wait for a state to “catch” you to move forward, you don`t really come voluntarily, so the same benefits don`t apply. Identifying the company as part of the first contact, although purely voluntary, streamlines the process. After both parties sign the VDA, BART sends the VDA executed with the corresponding notification forms. Tax data and voluntary payment of taxes are due within 60 days, as agreed. Texas Comptroller passed the Texas Sales Tax Amnesty program on the basis of The Senate`s No. 1 Law, passed in 2017.

In accordance with Section 17.11 of the Act, the program is “designed to encourage voluntary reporting by offenders who do not have authorization or who are not registered for a tax or levy managed by the accountant, or for approved tax payers who may have been declared or liable for taxes or additional fees.” Once the reports are processed, the subject receives the signed agreement and a statement of account. Participation in a voluntary disclosure program does not exempt you from any previous tax obligations. However, it will likely reduce your overall tax debt. The Comptroller`s office reserves the right to refuse the waiver of the penalty and/or interest or to cancel the contract in its entirety if the entity does not comply with the program`s guidelines and procedures. In addition, the reference periods contained in the VDA remain open for future reviews within the statute of limitations. The company must properly declare and pay the tax from the end date of the agreement. A Voluntary Disclosure Agreement (VDA) allows you to tell Texas Comptroller where you were neglected and receive more favourable treatment than you would without the VDA.

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