Voluntary Disclosure Agreements

VDAs are commonly used to manage audit exposure when a taxpayer becomes aware of a large sales and use tax liability. 

In most instances, a third party usually contacts the taxing jurisdiction on an anonymous basis.   Certain compromises or agreements are then reached with the taxing jurisdiction prior to divulging pertinent taxpayer information.  VDAs almost always result in a limited or reduced “look-back” period and often times related tax penalties will be abated as part of the taxing jurisdiction’s VDA program. 

Michael has prepared VDAs before and can assist clients with reducing audit exposure through a VDA.