Voluntary Disclosure Agreements (VDA) normally cover 3 to 4 years for any returns which are past the due date.  It should be noted that given the timing of extensions, the state may also require the filing of the most recent year return in addition if they adopt the federal extension, so the state was technically not past due.  Furthermore, certain states may go beyond the 3 to 4 years for the lookback period depending upon the normal statute of limitations for the applicable corporate or pass through return.   

The VDA fee is the fee for our firm applying for the voluntary disclosure agreement and managing the process for you entering the program. It should be noted that if the Taxpayer was previously contacted by the state or previously filed returns in the state, they may be prohibited from participating in the VDA.  In such a circumstance, we will apply for waiver of penalties on an hourly basis.   

We find it is easier for the original tax preparer to add an additional return since the federal return is already in their system. However, if that is not possible, then we can have an affiliated entity prepare the requested returns.

If you are interested in pursuing VDAs, then click on the link to book an appointment or to send an email. We look forward to serving you and your clients.

Voluntary Disclosure Agreements (VDA) normally cover 3 to 4 years for any returns which are past the due date. Furthermore, certain states, such as Hawaii, may go beyond the 3 to 4 years for the lookback period depending upon the normal statute of limitations for the applicable corporate or pass through return.  

The VDA fee is the fee for our firm applying for the voluntary disclosure agreement and managing the process for you entering the program.  It should be noted that if the Taxpayer was previously contacted by the state or previously filed returns in the state, they may be prohibited from participating in the VDA.  In such a circumstance, we will apply for waiver of penalties on an hourly basis.   

Some states will accept spreadsheets to report the historic taxable sales while other states will require the actual preparation of sales tax returns. We recommend that the Taxpayer consider implementing a sales tax engine to allow the processing of the prior returns. If you want us to prepare the prior returns, then we can provide those services for additional fees.  

If you are interested in pursuing VDAs, then click on the link to book an appointment or to send an email. We look forward to serving you and your clients. 

The IRS offers a voluntary program called the Voluntary Classification Settlement Program that allows taxpayers to reclassify their workers as employees for employment tax purposes for future tax periods while receiving partial relief from historic federal employment taxes. The taxpayer must meet certain eligibility requirements including not being under an employment tax audit or member of an affiliated group where an affiliated member is under an employment tax audit.

A taxpayer must have treated all of the workers in a class consistently and have filed all required form 1099s.  A taxpayer participating in the VCSP will agree to prospectively treat the class or classes of workers as employees for future tax periods and in exchange the taxpayer will pay 10 percent of the employment tax liability on the compensation paid to the workers for the most recent tax year determined using the reduced rates of IRC 3509(a).