What is a Sales Tax Voluntary Disclosure Agreement (VDA)?
A VDA is a Voluntary Disclosure Agreement between you and the state which attempts to bring you into compliance with the state. A VDA can cover a variety of taxes, but for the sake of this blog, we will only focus on sales tax.
If you have failed to remit sales tax when it was owed, you may use a VDA to become compliant and save money on penalties. This typically involves paying back the unpaid taxes and interest for a specific period of time (a shorter timeframe than an audit would look at) determined by the department. By doing this, you avoid the worry of an audit. It can also help with reducing costly penalties as a result of your sales tax non-compliance.
A VDA may be helpful in the following situations:
- You should have been collecting sales tax, but weren’t
- You collected the sales tax, but failed to remit it.
- You could save a substantial amount of money on waived penalties and interest by engaging in a voluntary disclosure agreement program.
A VDA might not, however, cover situations in which you collected sales tax, but did not have a sales tax permit allowing you to do so. This scenario is likely to be considered fraud and a criminal act.
It is important to note that many states require that you submit income tax voluntary disclosures on the same application as your sales tax voluntary disclosure. If you do not handle your income tax voluntary disclosure during your initial application, you might not have an opportunity to disclose unpaid income tax again!
What Happens When You Apply for a Voluntary Disclosure Agreement (VDA) Program?
Most states allow you to apply for a VDA confidentially or through the use of a third-party such as a tax preparer, accountant, or attorney. Some states require an accompanying Power of Attorney form. Please note that a Power of Attorney form does not require that you or your third-party representative be an attorney.
It is worth noting that a VDA application is just an application, not a guaranteed acceptance into the program. Any previous contact from the department would nullify your request. If a state determines you were willfully disregarding their laws, they may decide to not accept you into the program. In addition, most states stipulate that you may only enter into a Sales Tax Voluntary Disclosure Agreement (VDA) once.
If you are accepted, you typically must file all the necessary returns and remit the taxes and interest due. You may also need to make your books and records available for the department to look through. You typically also waive your right to argue that you don’t have nexus in the state. If at any time, the state determines that you misrepresented your facts, failed to comply with the agreement, or that you continue to disregard the state’s sales tax laws, they may disqualify your VDA.
Applying for a VDA in Multiple States
The Multistate Tax Commission (MTC) provides you with a program to negotiate a potential tax liability in multiple states (up to 37 states as well as the District of Columbia) at the same time using uniform procedures. By using the MTC instead of going to the states individually, you will come into compliance faster and more cheaply.
The MTC allows you to participate in the VDA program as long as you have not had contact (filing a tax return, paying tax, or being contacted) with the state for which you are applying for a VDA. You may also apply through the MTC anonymously.
Although the MTC has a uniform procedure, the MTC still defers to each state with regard to VDA eligibility rules and acceptance of a VDA application.
You may apply for a VDA through the MTC online or through email. You are also encouraged to read through their program guidelines.
Jump Ahead to Individual State Voluntary Disclosure Agreement (VDA) Requirements:
How to Apply for a Sales Tax VDA in Alabama
How do you apply for a Sales Tax Voluntary Disclosure Agreement (VDA) in Alabama?
You will need to submit an application online. Please take note that remote sellers without any physical presence are not eligible for a VDA in Alabama (see Alabama’s SSUT page for more information).
It appears likely that you would be able to apply for a VDA in Alabama anonymously.
When should you apply for a new sales tax permit in Alabama during the VDA process?
You may apply for a new sales tax permit in Alabama after the application has been submitted online.
If you already have a sales tax permit in Alabama, are you even eligible for a Voluntary Disclosure Agreement (VDA)??
If you have had an active permit within the last seven years, you are not eligible for a VDA. You can read Alabama’s VDA guidelines to learn more.
What is next after your initial VDA request is approved by Alabama?
You must enter into a binding agreement with the state for at least a three-year look-back period, file all the necessary returns and forms for the required period(s) within ninety days, make current extension and/or estimated payments in order to receive a waiver of penalties, and remit all tax and interest in accordance with the VDA. For more information on the VDA application, click For more information on the VDA application, click here.
How to Apply for a Sales Tax VDA in Arizona
How do you apply for a Sales Tax Voluntary Disclosure Agreement (VDA) in Arizona?
You will need to fill out the application form and email it to vda@azdor.gov. You will need to describe your business activities in Arizona, your business structure, and estimate your tax liability.
You may apply for a VDA in Arizona anonymously.
When should you apply for a new sales tax permit in Arizona during the VDA process?
You should apply for a TPT license (sales tax permit) before submitting a voluntary disclosure application.
If you already have a sales tax permit in Arizona, are you even eligible for a Voluntary Disclosure Agreement (VDA)??
It is likely that you would be eligible for a VDA. However, you would not be eligible if you have ever been contacted by the department or if you have participated in a VDA program for sales tax in Arizona in the past.
What is next after your initial VDA request is approved by Arizona?
An auditor will be assigned to your case and will respond with an introductory phone call and a confidential email containing detailed instructions and an unsigned agreement. You can read more about Arizona’s VDA program by reading their guidelines or their brochure.
TaxValet updated the Arizona VDA content above on June 12, 2023.
How to Apply for a Sales Tax VDA in Arkansas
How do you apply for a Sales Tax Voluntary Disclosure Agreement (VDA) in Arkansas?
You will need to fill out the application form and mail it to the department. You will need to provide certain facts about the ownership structure of the business and an estimate of the tax due for each year at issue.
You may apply for a VDA in Arkansas anonymously.
When should you apply for a new sales tax permit in Arkansas during the VDA process?
Arkansas requires that no sales tax returns have been made prior to a VDA. Thus, you should wait until the VDA is executed before applying for a sales tax permit.
If you already have a sales tax permit in Arkansas, are you even eligible for a Voluntary Disclosure Agreement (VDA)??
If you already have a sales tax permit, you may be eligible only if you did not file any sales tax returns. However, if you have been collecting tax, but not remitting it to the state, that will negatively impact your application for a VDA.
What is next after your initial VDA request is approved by Arkansas?
The department will review your case and will agree to waive all penalties as long as the determined tax and interest due is paid in full. You will also need to sign a completed VDA (click here for a sample VDA). You can read more about Arkansas’s VDA program by reading their guidelines.
How to Apply for a Sales Tax VDA in California
How do you apply for a Sales Tax Voluntary Disclosure Agreement (VDA) in California?
You will need to fill out the applicable VDA application and mail it to the department. You will need to describe your business activities in California and reasons for seeking a VDA. The application must be submitted within 30 days of registering for a sales tax permit.
It appears you may NOT apply for a VDA in California anonymously. You can, however, submit information anonymously to California first to see if you are likely to be approved for the VDA before proceeding with permit registration and the VDA application process.
When should you apply for a new sales tax permit in California during the VDA process?
You should apply for a California sales tax permit before applying for a VDA.
If you already have a sales tax permit in California, are you even eligible for a Voluntary Disclosure Agreement (VDA)?
No, if you already have a sales tax permit, you are not eligible for a VDA.
What is next after your initial VDA request is approved by California?
You will need to file and pay the necessary tax returns electronically. You may read more about California’s VDA programs by clicking here.
TaxValet updated the California VDA content above on February 7, 2023.
How to Apply for a Sales Tax VDA in Colorado
How do you apply for a Sales Tax Voluntary Disclosure Agreement (VDA) in Colorado?
You will need to complete a voluntary disclosure request, which includes a Statement of Representations and Inducement and a Statement of Tax Liabilities indicating the filing periods and tax types that the company wishes to settle.
You are able to apply for a VDA in Colorado anonymously.
When should you apply for a new sales tax permit in Colorado during the VDA process?
You will need to apply for a sales tax permit within 30 days of executing the VDA.
If you already have a sales tax permit in Colorado, are you even eligible for a Voluntary Disclosure Agreement (VDA)?
You may not apply for a VDA if you already hold a sales tax permit.
What is next after your initial VDA request is approved by Colorado?
You will receive a “Settlement Agreement and Mutual Release for Registration and Payment of Colorado State Taxes.” You will need to accept and return this offer, as well as file all returns and pay the tax due within 60 days for this offer to be valid. Once the state has calculated interest due on the returns filed, this amount will need to be paid within 30 days.
To read more about Colorado’s Voluntary Disclosure Program, click To read more about Colorado’s Voluntary Disclosure Program, click here.
TaxValet updated the Colorado VDA content above on March 3, 2023.
How to Apply for a Sales Tax VDA in Connecticut
How do you apply for a Sales Tax Voluntary Disclosure Agreement (VDA) in Connecticut?
You will need to mail or email a “Disclosure Application” to the Department of Revenue Services containing the type of tax involved (sales tax), description of business activities in Connecticut, the starting date of those activities, reasons for non-compliance, the amount of potential tax liability, and an admission of liability for sales tax.
You may apply for a VDA in Connecticut anonymously.
When should you apply for a new sales tax permit in Connecticut during the VDA process?
Connecticut does not give a specific timeframe for when you need to apply for a sales tax permit.
If you already have a sales tax permit in Connecticut, are you even eligible for a Voluntary Disclosure Agreement (VDA)??
It is uncertain whether a sales tax permit holder in Connecticut would be eligible for a VDA.
What is next after your initial VDA request is approved by Connecticut?
Upon approval, you will need to file all returns for the necessary periods, pay all the tax and interest due for those periods, agree to give the department access to your books and records, and waive all rights to request a refund based on the lack of nexus. To read more about Connecticut’s Voluntary Disclosure Program, click here.
How to Apply for a Sales Tax VDA in
District of Columbia
How do you apply for a Sales Tax Voluntary Disclosure Agreement (VDA) in the District of Columbia?
You will need to fill out the Voluntary Disclosure Online Request form. The district has given detailed instructions regarding how to fill out this form. Please note that you will need to estimate the tax due for the VDA periods in question when filling out this form.
You may apply for a VDA in the District of Columbia anonymously.
When should you apply for a new sales tax permit in the District of Columbia during the VDA process?
You should apply for a sales tax permit after you have received approval for your initial VDA request. You will receive a letter during the process containing the confirmation number required to associate your account to the VDA case. Additionally, the letter will require you to register via MyTax.DC.gov before associating the account to the case.
If you already have a sales tax permit in the District of Columbia, are you even eligible for a Voluntary Disclosure Agreement (VDA)??
Yes, you can be registered with the District but must not have filed prior returns for the tax account they wish to apply under the VDA.
What is next after your initial VDA request is approved by the District of Columbia?
You will receive a letter from the department which will detail the next steps to file their returns, require you to register and to associate the request to their account. To read more about the District of Columbia’s Voluntary Disclosure Program, click here. You may also find their frequently asked questions to be useful.
How to Apply for a Sales Tax VDA in Florida
How do you apply for a Sales Tax Voluntary Disclosure Agreement (VDA) in Florida?
You will need to complete a written request including a statement that you have not been contacted by the department about sales tax liability, the tax type (sales tax) and the period being disclosed.
You may apply for a VDA in Florida anonymously.
When should you apply for a new sales tax permit in Florida during the VDA process?
If you do not already hold a Florida sales tax permit, you will need to complete a Florida Business Tax Application (Form DR-1) and mail it in once approved for the Voluntary Disclosure Program.
If you already have a sales tax permit in Florida, are you even eligible for a Voluntary Disclosure Agreement (VDA)??
Yes, you are eligible for a VDA if you already hold a Florida sales tax permit.
What is next after your initial VDA request is approved by Florida?
You will need to complete a spreadsheet that identifies the amount of tax due including the amount of tax that was collected, but not remitted. Other facts that need to be included are the amount of tax that was collected and not-remitted, your city, county, and state, the type of taxable activities and transactions, and your sales and use tax certificate number if applicable. A completed Florida Business Tax Application (form DR-1) if you need to register for sales and use tax. Click here to read more about Florida’s voluntary disclosure program.
TaxValet updated the Florida VDA content above on June 13, 2023.
How to Apply for a Sales Tax VDA in Georgia
How do you apply for a Sales Tax Voluntary Disclosure Agreement (VDA) in Georgia?
You will need to submit a Voluntary Disclosure Agreement Application, in the form of a written statement. Among the necessary information, you will need to state why you need a VDA, and whether you failed to collect or failed to remit sales taxes. In addition, you will need to provide an estimated sales tax liability for the last three years (or more if you collected, but failed to remit sales taxes).
You may apply for a VDA in Georgia anonymously.
When should you apply for a new sales tax permit in Georgia during the VDA process?
A taxpayer can register at any time, but if you already have a permit application in progress, the state recommends submitting the VDA application quickly to avoid being contacted by the state first, which could disqualify you from the program.
If you already have a sales tax permit in Georgia, are you even eligible for a Voluntary Disclosure Agreement (VDA)??
You may still be eligible for a VDA even if you have a sales tax permit.
What is next after your initial VDA request is approved by Georgia?
Once approved, you will need to file the necessary returns and pay the tax due. The interest will be calculated and also due within 30 days of receipt of the tax payment. If you’d like to read more about Georgia’s voluntary disclosure program, click here.
TaxValet updated the Georgia VDA content above on March 15, 2023.
How to Apply for a Sales Tax VDA in Hawaii
How do you apply for a Sales Tax Voluntary Disclosure Agreement (VDA) in Hawaii?
You will need to submit a voluntary disclosure request by emailing tax.voluntary.disclosure@hawaii.gov with the necessary facts. Some of those necessary facts include your identity and personal/business information, and details about the non-compliance with regards to sales tax.
You may apply for a VDA in Hawaii anonymously with an accompanying power of attorney form.
When should you apply for a new sales tax permit in Hawaii during the VDA process?
Hawaii does not give a specific timeframe for when you need to apply for a sales tax permit.
If you already have a sales tax permit in Hawaii, are you even eligible for a Voluntary Disclosure Agreement (VDA)??
It is uncertain whether a sales tax permit holder in Hawaii would be eligible for a VDA.
What is next after your initial VDA request is approved by Hawaii?
You will receive a notification from the department informing you of any further conditions and requirements needed to complete the voluntary disclosure process.
How to Apply for a Sales Tax VDA in Idaho
How do you apply for a Sales Tax Voluntary Disclosure Agreement (VDA) in Idaho?
First, you must owe more than $500 in the look-back period to qualify for a VDA. In addition, you must not have had a business location in Idaho during that time. If you meet these qualifications, you will need to fill out the VDA application form. You will then need to answer multiple questions about your business activities in Idaho and history of non-compliance.
You may apply for a VDA in Idaho anonymously.
When should you apply for a new sales tax permit in Idaho during the VDA process?
You will need to apply for a sales tax permit before signing the final VDA contract.
If you already have a sales tax permit in Idaho, are you even eligible for a Voluntary Disclosure Agreement (VDA)??
Since Idaho allows you to apply for a VDA if you have collected, but unremitted taxes, you may be eligible for a VDA even if you had a sales tax permit in the past.
What is next after your initial VDA request is approved by Idaho?
You will receive an official agreement from Idaho for your final approval. If you use a representative, a copy will be sent to them as well. Within thirty days, you will need to sign the agreement and return all the tax registration forms, returns, schedules, and payment. You can visit the department’s website for more information.
How to Apply for a Sales Tax VDA in Illinois
How do you apply for a Sales Tax Voluntary Disclosure Agreement (VDA) in Illinois?
You will need to fill out the Application for Voluntary Disclosure Program. You must disclose your business information, that this is for sales tax and identify the tax period(s) for which you are seeking relief. If you have someone representing you during the VDA process, you will also need to submit a Power of Attorney form.
It appears you may NOT apply for a VDA in Illinois anonymously.
When should you apply for a new sales tax permit in Illinois during the VDA process?
You should apply for a sales tax permit online when you submit your VDA application. You also have the option of submitting the registration form with your VDA application.
If you already have a sales tax permit in Illinois, are you even eligible for a Voluntary Disclosure Agreement (VDA)?
You may NOT apply for a VDA in Illinois if you are already registered for the tax type. However, you may still qualify for the VDA program in Illinois if you have collected, but not remitted taxes.
TaxValet updates the Illinois VDA content above on January 27th, 2023
How to Apply for a Sales Tax VDA in Indiana
How do you apply for a Sales Tax Voluntary Disclosure Agreement (VDA) in Indiana?
You will need to fill out the VDA application and mail it or submit it online. You will need to describe your business activities in Indiana as well as estimate your tax liability by year. Please note that if you are filing for a VDA as a result of economic nexus in Indiana, you must request a Remote Seller Compliance Agreement instead of a VDA.
You may apply for a VDA in Indiana anonymously.
When should you apply for a new sales tax permit in Indiana during the VDA process?
You will need to file on a go-forward basis at the time of the executed VDA, thus you should apply for a sales tax permit once you have submitted your VDA application.
If you already have a sales tax permit in Indiana, are you even eligible for a Voluntary Disclosure Agreement (VDA)??
No, if you had a sales tax permit in Indiana prior to submitting a VDA application, you are not eligible for a VDA.
What is next after your initial VDA request is approved by Indiana?
You will need to return the executed VDA within thirty days of issuance, file all returns and pay the tax within ninety days of the executed VDA, and pay the interest within twenty days of being billed by the department. More information can be found here.
How to Apply for a Sales Tax VDA in Iowa
How do you apply for a Sales Tax Voluntary Disclosure Agreement (VDA) in Iowa?
You must submit a written application to the state by mail. You may contact them anonymously. Among the facts that need to be included (see IAC 701.3.1(5)), you’ll need to describe the business activities in Iowa, give reasons describing the non-compliance, and give an estimation of the unpaid tax.
You may apply for a VDA in Iowa anonymously.
When should you apply for a new sales tax permit in Iowa during the VDA process?
Iowa does not give a specific timeframe for when you need to apply for a sales tax permit.
If you already have a sales tax permit in Iowa, are you even eligible for a Voluntary Disclosure Agreement (VDA)??
If you already have a sales tax permit in Iowa, it is unlikely that you would be eligible for a VDA since the purpose of Iowa’s voluntary disclosure program is to encourage unregistered taxpayers to come into compliance with the department.
What is next after your initial VDA request is approved by Iowa?
After receiving a notice from the department, you will need to submit all requested information, documents, evidence, and returns within the requested time frame. If you’d like to read more about Iowa’s voluntary disclosure program, click here.
How to Apply for a Sales Tax VDA in Kansas
How do you apply for a Sales Tax Voluntary Disclosure Agreement (VDA) in Kansas?
You will need to apply in writing. Among the necessary facts you need to include you will need to describe your business activities in Kansas, your previous history with the state’s department of revenue, an explanation of why you need a VDA, and an estimate of the amount of taxes due to Kansas.
You may apply for a VDA in Kansas anonymously.
When should you apply for a new sales tax permit in Kansas during the VDA process?
You will need to apply for a sales tax permit after you receive the draft agreement for your VDA.
If you already have a sales tax permit in Kansas, are you even eligible for a Voluntary Disclosure Agreement (VDA)??
Since it appears Kansas allows you to apply for a VDA if you have collected, but unremitted taxes, you may be eligible for a VDA even if you had a sales tax permit in the past.
What is next after your initial VDA request is approved by Kansas?
You will receive a draft agreement from the state for you to review and approve. You will have sixty days to return and sign this agreement, register with the state, complete all returns and schedules, and make the necessary payments.
TaxValet updated the Kansas VDA content above on June 26th, 2023
How to Apply for a Sales Tax VDA in Kentucky
How do you apply for a Sales Tax Voluntary Disclosure Agreement (VDA) in Kentucky?
You will need to apply in writing. Among the necessary facts you need to include, you will need to describe your business activities in Kentucky and the history of any contact you may have had with the department of revenue. You will also need to propose disclosure terms.
You will be able to complete the voluntary disclosure process in Kentucky anonymously.
When should you apply for a new sales tax permit in Kentucky during the VDA process?
The department will provide you with a new sales tax permit once they receive the executed VDA from you.
If you already have a sales tax permit in Kentucky, are you even eligible for a Voluntary Disclosure Agreement (VDA)??
It is uncertain whether a sales tax permit holder in Kentucky would be eligible for a VDA.
What is next after your initial VDA request is approved by Kentucky?
You will receive a disclosure agreement for you to review and approve. You will have between sixty and ninety days to execute the VDA, file all necessary returns, and submit payment.
How to Apply for a Sales Tax VDA in Louisiana
How do you apply for a Sales Tax Voluntary Disclosure Agreement (VDA) in Louisiana?
You will need to fill out the Form R-60010, Application to Request VDA. Among the facts required on the form, you will need to describe your business type and activities in Louisiana as well as estimate the total unpaid tax liability.
You may apply for a VDA in Louisiana anonymously.
When should you apply for a new sales tax permit in Louisiana during the VDA process?
You will need to apply for a sales tax permit when you make payment for the assessed tax.
If you already have a sales tax permit in Louisiana, are you even eligible for a Voluntary Disclosure Agreement (VDA)??
If you already have a sales tax permit in Louisiana, you are not eligible for a Sales Tax Voluntary Disclosure Agreement (VDA).
What is next after your initial VDA request is approved by Louisiana?
You will receive a blank VDA which you will need to fill out. When filling out the blank VDA, you will need to include all the relevant facts about your situation. You may choose to remain anonymous when filling out the VDA in Louisiana. After you send back the VDA, the department will then decide whether to enter into the VDA. You may read more about this process here.
What percentage of businesses get audited? Which states are most aggressive? And how much does a sales tax audit cost? Get your answers by email today…
Still More Information on VDAs in Each State
Are you still hanging in there? We aren’t done yet! There is still more information on Voluntary Disclosure Agreements (VDA) in each state. Remember, you can just follow the links at the top of the post to jump close to the information regarding any states.
How to Apply for a Sales Tax VDA in Maine
How do you apply for a Sales Tax Voluntary Disclosure Agreement (VDA) in Maine?
You will need to fill out the Maine Voluntary Disclosure Application. Among the facts that are required, you will need to describe your business type and activities in Maine, estimate your tax liability, and explain the reasons for noncompliance.
You may apply for a VDA in Maine anonymously.
When should you apply for a new sales tax permit in Maine during the VDA process?
Maine does not give a specific timeframe for when you need to apply for a sales tax permit.
If you already have a sales tax permit in Maine, are you even eligible for a Voluntary Disclosure Agreement (VDA)??
Since Maine allows you to apply for a VDA if you underreported your taxes, you may be eligible for a VDA even if you had a sales tax permit in the past.
You cannot have been contacted by the Department of Revenue.
What is next after your initial VDA request is approved by Maine?
You will receive a VDA, which will cover the taxes and tax periods which you listed in your VDA application. You will then need to promptly pay all taxes and interest You may read more about this process here.
How to Apply for a Sales Tax VDA in Maryland
How do you apply for a Sales Tax Voluntary Disclosure Agreement (VDA) in Maryland?
You will need to mail a letter to the department including some necessary facts. Among these facts, you will need to describe your business activities in Maryland, state why your tax liability exists, and estimate your tax liability for the required lookback period.
You may apply for a VDA in Maryland anonymously.
When should you apply for a new sales tax permit in Maryland during the VDA process?
You should apply for a sales tax permit during the VDA process.
If you already have a sales tax permit in Maryland, are you even eligible for a Voluntary Disclosure Agreement (VDA)??
If you already have a sales tax permit in Maryland, you are eligible for a VDA.
What is next after your initial VDA request is approved by Maryland?
You and the state will need to agree to VDA terms. After that, you will have sixty days to report and pay the reported tax.
TaxValet updated the Kansas VDA content above on August 14, 2023
How to Apply for a Sales Tax VDA in Massachusetts
How do you apply for a Sales Tax Voluntary Disclosure Agreement (VDA) in Massachusetts?
You will need to apply for a VDA electronically through MassTaxConnect. You will need to include information about the relevant tax accounts and periods as well as reasons as to why you failed to file and pay the taxes.
You may make the initial application for a VDA in Massachusetts anonymously.
When should you apply for a new sales tax permit in Massachusetts during the VDA process?
You should apply for a sales tax permit after applying for a VDA.
If you already have a sales tax permit in Massachusetts, are you even eligible for a Voluntary Disclosure Agreement (VDA)??
If you already have a sales tax permit in Massachusetts, you are not eligible for a VDA.
What is next after your initial VDA request is approved by Massachusetts?
You will receive a Voluntary Disclosure Program Policy Notice. You will then need to provide the requested information by the requested date. You will also need to disclose your identity, register for a sales tax permit, and electronically file all necessary returns You can read more about this here.
How to Apply for a Sales Tax VDA in Michigan
How do you apply for a Sales Tax Voluntary Disclosure Agreement (VDA) in Michigan?
You will need to fill out the Michigan Voluntary Disclosure Request form. You must include relevant facts about your business such as reasons for non-compliance, general business information, and history of business activities in Michigan.
You may complete this VDA form in Michigan anonymously.
When should you apply for a new sales tax permit in Michigan during the VDA process?
The permit registration should be done after the application is accepted for the VDA program.
If you already have a sales tax permit in Michigan, are you even eligible for a Voluntary Disclosure Agreement (VDA)??
If you already have a sales tax permit in Michigan, you may still be eligible for a VDA.
What is next after your initial VDA request is approved by Michigan?
You will likely receive a copy of the VDA to sign and return. If you’d like to read more about Michigan’s voluntary disclosure program, click on their website about Voluntary Disclosure here or The Revenue Division of Department of Treasury Excerpt here.
TaxValet updated the Michigan VDA content above on August 14, 2023
How to Apply for a Sales Tax VDA in Minnesota
How do you apply for a Sales Tax Voluntary Disclosure Agreement (VDA) in Minnesota?
You will need to fill out your application electronically.
You may apply for a VDA in Minnesota anonymously.
When should you apply for a new sales tax permit in Minnesota during the VDA process?
Minnesota does not give a specific timeframe for when you need to apply for a sales tax permit.
If you already have a sales tax permit in Minnesota, are you even eligible for a Voluntary Disclosure Agreement (VDA)??
It is uncertain whether a sales tax permit holder in Minnesota would be eligible for a VDA.
What is next after your initial VDA request is approved by Minnesota?
You will need to disclose your identity and sign and return the VDA You can read more about the VDA program by clicking here.
How to Apply for a Sales Tax VDA in Mississippi
How do you apply for a Sales Tax Voluntary Disclosure Agreement (VDA) in Mississippi?
You will need to write a letter to the department. You will need to include some necessary facts such as your business activities in Mississippi, your business entity type, and an estimate of total unpaid taxes for the lookback period.
You may write this VDA letter in Mississippi anonymously.
When should you apply for a new sales tax permit in Mississippi during the VDA process?
You will likely need to apply for a sales tax permit within sixty days of the issuance of your acceptance letter.
If you already have a sales tax permit in Mississippi, are you even eligible for a Voluntary Disclosure Agreement (VDA)??
If you had a sales tax permit in the last three years before the lookback period (the standard lookback period for sales tax in Mississippi is thirty-six months), you are not eligible for a Sales Tax Voluntary Disclosure Agreement (VDA) in Mississippi.
What is next after your initial VDA request is approved by Mississippi?
You will need to file all required returns and forms within sixty days of the issuance of your acceptance letter as well as all tax and interest due.
How to Apply for a Sales Tax VDA in Missouri
How do you apply for a Sales Tax Voluntary Disclosure Agreement (VDA) in Missouri?
You will need to apply online or by filling out and mailing an application form. You will need to describe your business activities in Missouri and your business history.
You may apply for this VDA in Missouri anonymously.
When should you apply for a new sales tax permit in Missouri during the VDA process?
Missouri does not give a specific timeframe for when you need to apply for a sales tax permit.
If you already have a sales tax permit in Missouri, are you even eligible for a Voluntary Disclosure Agreement (VDA)??
Since it appears Missouri allows you to apply for a VDA if you have collected, but unremitted taxes, you may be eligible for a VDA even if you had a sales tax permit in the past.
What is next after your initial VDA request is approved by Missouri?
You will have sixty days to determine the tax & interest liability and prepare the returns. You may read more about their guidelines here.
How to Apply for a Sales Tax VDA in Nebraska
How do you apply for a Sales Tax Voluntary Disclosure Agreement (VDA) in Nebraska?
You will need to write a “Statement of Facts” and send it by mail. Among the necessary facts, you will need to describe your business activities in Nebraska, the reason for noncompliance, and an estimate of your potential tax liability for the past three years.
You may apply for a VDA in Nebraska anonymously.
When should you apply for a new sales tax permit in Nebraska during the VDA process?
It is most likely that you will need to apply for a sales tax permit after acceptance of the VDA.
If you already have a sales tax permit in Nebraska, are you even eligible for a Voluntary Disclosure Agreement (VDA)??
It is uncertain whether a sales tax permit holder in Nebraska would be eligible for a VDA.
What is next after your initial VDA request is approved by Nebraska?
You will need to sign the agreement, file all necessary documents within the agreed-upon timeframe, and pay the necessary tax and interest.
How to Apply for a Sales Tax VDA in Nevada
How do you apply for a Sales Tax Voluntary Disclosure Agreement (VDA) in Nevada?
You will need to mail or email Nevada’s VDA application form. You will need to provide your business name and information as well as an estimate of the liable tax.
It seems unlikely that you would be able to apply for a VDA in Nevada anonymously.
When should you apply for a new sales tax permit in Nevada during the VDA process?
You should apply for a sales tax permit at the same time you apply for a VDA.
If you already have a sales tax permit in Nevada, are you even eligible for a Voluntary Disclosure Agreement (VDA)??
It seems unlikely that a sales tax permit holder in Nevada would be eligible for a VDA.
What is next after your initial VDA request is approved by Nevada?
You will have ninety days to file all necessary tax returns as well as pay the necessary tax.
How to Apply for a Sales Tax VDA in New Jersey
How do you apply for a Sales Tax Voluntary Disclosure Agreement (VDA) in New Jersey?
You will need to mail or email a filled out VDA Fact Pattern Form and a written proposal. Among the required facts in the VDA Fact Pattern Form, you will need to include a description of your business activities in New Jersey and your business entity type. Among the required facts in the written proposal, you will need to include a list of the taxes to be filed and paid.
You may complete these forms for a VDA in New Jersey anonymously.
When should you apply for a new sales tax permit in New Jersey during the VDA process?
You will need to apply for a new sales tax permit after the VDA is executed.
If you already have a sales tax permit in New Jersey, are you even eligible for a Voluntary Disclosure Agreement (VDA)??
You would Not be eligible for a VDA if you are registered with the State.
What is next after your initial VDA request is approved by New Jersey?
Once the VDA is executed, you will need to submit the returns, pay the tax and interest due, and complete the necessary tax registration forms and nexus questionnaire.
TaxValet updated the New Jersey VDA content above on August 25, 2023
How to Apply for a Sales Tax VDA in New Mexico
How do you apply for a managed audit agreement (Sales Tax Voluntary Disclosure Agreement (VDA) in New Mexico?
You may submit your application online.
You will need to disclose your business identity in the application.
When should you apply for a new sales tax permit in New Mexico during the managed audit agreement (Sales Tax Voluntary Disclosure Agreement (VDA) process?
Need to register before applying for Managed audit. PLEASE NOTE: Please create the start date of your tax program with the start date of when the managed audit request will be, do not enter the date you created the account, otherwise this will cause a delay in processing the managed audit application.
If you already have a sales tax permit in New Mexico, are you even eligible for a managed audit agreement (Sales Tax Voluntary Disclosure Agreement (VDA)?
Yes. You need to apply before applying for the Managed Audit Program.
What is next after your initial managed audit agreement (Sales Tax Voluntary Disclosure Agreement (VDA) request is approved by New Mexico?
You will need to specify and include facts such as the periods under audit and decide whether you want to have an assigned auditor or if you’d like minimal guidance from the department. You can read more about the managed audit process here.
How to Apply for a Sales Tax VDA in New York
How do you apply for a Sales Tax Voluntary Disclosure Agreement (VDA) in New York?
You will need to apply online. You will need a detailed description of the taxes you owe and the reason for which you owe those taxes.
You will need to disclose your business identity in the application.
When should you apply for a new sales tax permit in New York during the VDA process?
New York does not give a specific timeframe for when you need to apply for a sales tax permit.
If you already have a sales tax permit in New York, are you even eligible for a Voluntary Disclosure Agreement (VDA)??
Yes but, If you filed a return but didn't pay in full, you aren't eligible for this program. Wait for a bill and then request an installment payment agreement.
What is next after your initial VDA request is approved by New York?
You will need to sign and return the agreement along with signed copies of your tax returns for the tax periods in question. You may read more about the process here, here, and here.
How to Apply for a Sales Tax VDA in North Carolina
How do you apply for a Sales Tax Voluntary Disclosure Agreement (VDA) in North Carolina?
You will need to fill out the North Carolina Application for Voluntary Disclosure. You must describe your business activities in North Carolina and give general facts about your business.
You may apply for a VDA in North Carolina anonymously.
When should you apply for a new sales tax permit in North Carolina during the VDA process?
North Carolina does not give a specific timeframe for when you need to apply for a sales tax permit.
If you already have a sales tax permit in North Carolina, are you even eligible for a Voluntary Disclosure Agreement (VDA)??
It appears that you are likely eligible for a VDA even if you already have a sales tax permit.
What is next after your initial VDA request is approved by North Carolina?
You will receive a signed VDA which you must sign. Within sixty days of the completed VDA, you will need to determine the tax and interest owed, prepare the necessary returns or spreadsheets, and pay the liability. You may read more about that here.
How to Apply for a Sales Tax VDA in North Dakota
How do you apply for a Sales Tax Voluntary Disclosure Agreement (VDA) in North Dakota?
You will need to complete and mail a written disclosure statement. You will need to describe your business activities in North Dakota, provide reasons for your non-compliance, and provide an estimate of your tax liability.
You may apply for a VDA in North Dakota anonymously.
When should you apply for a new sales tax permit in North Dakota during the VDA process?
If you do not already have a valid North Dakota sales permit, you will need to apply for a sales tax permit within thirty days of returning the completed VDA.
If you already have a sales tax permit in North Dakota, are you even eligible for a Voluntary Disclosure Agreement (VDA)??
Since it appears North Dakota allows you to apply for a VDA if you have collected, but unremitted taxes, you may be eligible for a VDA even if you had a sales tax permit in the past.
What is next after your initial VDA request is approved by North Dakota?
You will receive two copies of the proposed VDA. You will need to complete, sign, and return one of those copies within sixty days of the original mailing date. Once the VDA is returned in a timely fashion, you will have thirty days to return all necessary information, registration, returns, and schedules.
How to Apply for a Sales Tax VDA in Ohio
How do you apply for a Sales Tax Voluntary Disclosure Agreement (VDA) in Ohio?
You will need to mail or email a completed VDA application or fill out an online application. You will need to describe your business activities in Ohio and estimate your tax liability.
You may apply for a VDA in Ohio anonymously.
When should you apply for a new sales tax permit in Ohio during the VDA process?
If you do not already have an Ohio sales tax permit, you must apply for a sales tax permit within sixty days of receiving the VDA.
If you already have a sales tax permit in Ohio, are you even eligible for a Voluntary Disclosure Agreement (VDA)??
Yes, in fact, if you already have an Ohio sales tax permit, you will need to provide your registration number when applying for the VDA.
What is next after your initial VDA request is approved by Ohio?
You will receive a VDA which you will need to complete, sign, and return within sixty days. You will also need to submit this spreadsheet showing the taxes owed, and send a check for the tax owed. Click here for more information on the Ohio VDA process.
How to Apply for a Sales Tax VDA in Oklahoma
How do you apply for a Sales Tax Voluntary Disclosure Agreement (VDA) in Oklahoma?
You will need to apply online. You may apply for a VDA in Oklahoma anonymously.
When should you apply for a new sales tax permit in Oklahoma during the VDA process?
Oklahoma does not give a specific timeframe for when you need to apply for a sales tax permit.
If you already have a sales tax permit in Oklahoma, are you even eligible for a Voluntary Disclosure Agreement (VDA)??
No, if you have held or even applied for an Oklahoma sales tax permit in the past, you are not eligible for a Sales Tax Voluntary Disclosure Agreement (VDA).
What is next after your initial VDA request is approved by Oklahoma?
You will receive a blank VDA which you will need to complete, sign, and return. Click here for more information about Oklahoma’s VDA program.
TaxValet updated the Oklahoma VDA content above on September 11, 2023
How to Apply for a Sales Tax VDA in Pennsylvania
How do you apply for a Sales Tax Voluntary Disclosure Agreement (VDA) in Pennsylvania?
Taxpayers interested in participating in the program should send an email to ra-voluntarydisclosure@pa.gov to request a case number. The email should include the contact information (mailing address, phone number, etc.) for the person requesting the case.
Once assigned, the taxpayer will be provided with their case number, application instructions, and a Business Activities Questionnaire (DEO-50).
Note: The Business Activities Questionnaire is not available online. It can only be obtained by contacting the Voluntary Disclosure Office.
You may apply for a VDA in Pennsylvania anonymously.
When should you apply for a new sales tax permit in Pennsylvania during the VDA process?
The department will register you for a sales tax permit after you are enrolled in the VDA program.
If you already have a sales tax permit in Pennsylvania, are you even eligible for a Voluntary Disclosure Agreement (VDA)??
No, if you hold a Pennsylvania sales tax permit, you are not eligible for a VDA.
What is next after your initial VDA request is approved by Pennsylvania?
You will receive two copies of a proposed VDA. You will need to sign and return both copies within forty-five days. The department will then send back one of the copies along with instructions for filing returns and remitting payment. Click here for more information about Pennsylvania’s VDA program or here for some frequently asked questions.
