State Tax Voluntary Disclosure Agreements
If your business has unregistered or unfiled state-tax obligations, a voluntary disclosure agreement can be a way to come forward and resolve prior periods on defined terms before a state initiates contact. A licensed CPA reviews the facts and coordinates the process with the state.
Situations That May Require a VDA
Sales into unregistered states
Sales or transaction thresholds may have created a duty to register and file.
Tax collected but not remitted
Tax you collected and did not file is a liability that continues to grow.
Unfiled income or franchise returns
State income or franchise tax obligations that were never filed.
Exposure across several states
Multistate exposure that is easier to resolve in a coordinated way.
What a Voluntary Disclosure May Accomplish
Depending on the state and your facts, a voluntary disclosure may limit the lookback period, reduce or waive penalties, and bring you into compliance on defined terms. It does not eliminate the underlying tax. Tax and interest generally remain payable, and results vary by state.
Eligibility Considerations
Several factors determine whether a voluntary disclosure is the right procedure, and they must be reviewed before anything is filed:
Eligibility varies by state
Each state sets its own program terms and conditions.
Prior state contact matters
If a state has already contacted you about an issue, that issue may no longer qualify.
Lookback periods vary
The number of prior periods covered differs by state and program.
Penalty relief varies
Some programs waive penalties; others reduce them. Tax and interest generally remain due.
We review the facts before confirming the appropriate procedure. Eligibility is never assumed before that review.
Services Included
A voluntary-disclosure representation generally covers the disclosure application, state coordination, the agreement process, registration coordination, and closing confirmation.
Disclosure types
Sales and use tax, state income tax, franchise tax, combined tax-type disclosures, single-state and multistate disclosures.
Coordination
State correspondence, agreement review and coordination, and Multistate Tax Commission coordination where applicable.
Getting compliant
Registration coordination, historical return preparation and liability schedules where included, and transition into ongoing compliance.
What Is Separately Scoped
To keep pricing honest, some work is quoted separately unless your proposal expressly includes it: preparation of historical returns, bookkeeping cleanup, exposure and liability calculations, product taxability analysis, and ongoing filings. Your written proposal states exactly what is included.
Voluntary Disclosure Pricing
Published starting prices reflect the disclosure representation itself. The final fee is confirmed in writing after a review of your facts.
Voluntary Disclosure Representation
Per state and tax type. Covers the application, state coordination, agreement process, registration coordination, and closing confirmation.
Complex or Combined Disclosures
Per state, for combined taxes, significant exposure, extensive state correspondence, or materially complex facts.
Five or More States
Priced to the actual scope. Historical returns, accounting cleanup, taxability analysis, liability calculations, and ongoing filings are separately scoped unless expressly included.
The Process
Review your facts
We look at where you sell, what you collected, and whether any state has already made contact, then confirm whether a voluntary disclosure fits.
Confirm scope and fee
You receive a written scope and flat fee for the disclosure work before anything begins.
Disclose and resolve
We coordinate with the state, prepare the agreed filings, and transition you into ongoing compliance.
Voluntary Disclosure Questions, Answered
Does a VDA eliminate all the tax I owe?
A state already contacted us. Can we still do a VDA?
Is return preparation included in the disclosure fee?
How is multistate pricing handled?
Can you confirm eligibility on the introductory call?
Discuss a Voluntary Disclosure
Tell us which states and tax types are involved and whether any state has contacted you. We will confirm whether it fits our services and the appropriate next step.