Voluntary Disclosure/Amnesty

Voluntary Disclosure

Given the minimal nexus requirements imposed by most state and local taxing jurisdictions, businesses frequently trigger sales and use tax collection or income/franchise tax filing responsibilities but remain unaware of their duty to register with these state taxing authorities. 

In these situations, our team can help your business minimize potential outstanding tax liabilities by systematically negotiating a voluntary disclosure agreement with the relevant taxing authorities to settle past-due liabilities and register the business for proper compliance prospectively.  Typically, qualifying businesses entering into a voluntary disclosure agreement will benefit from:

  • Anonymous application process initiated by a representative;
  • Limited look-back periods;
  • Simplified reporting of sales and use tax liabilities; 
  • Waiver of penalties imposed for late filing and payment, and
  • No criminal penalties.

Our SALT team has experience negotiating voluntary disclosure agreements with most states, as well as with the Multistate Tax Commission.  We can assist your business with determining the best path to resolving your past-due liabilities and preparing for future tax compliance.

Amnesty

State and local tax jurisdictions sometimes offer limited-time amnesty programs for taxpayers with delinquent or unpaid tax liabilities.  These programs are similar to voluntary disclosure programs regularly offered by state taxing authorities but there can be differences in eligibility requirements, look-back periods and settlement terms.  The factors should all be evaluated to determine if amnesty is the right option for your business.  Participants typically benefit from reduced interest rates and the waiver of penalties on unpaid liabilities.  Most states will also impose post-amnesty penalties on taxpayers who were eligible to participate in the program but failed to do so.

See our updated list of current and upcoming amnesty programs below: 

State  Amnesty Period   Benefits
Connecticut  10/31/17 - 11/30/18  Waiver of penalties and one-half interest (1)
Rhode Island 12/1/17 - 2/18/18  Waiver of penalties and one-quarter interest
Ohio 1/1/18 - 2/15/18  Waiver of penalties and one-half interest
South Carolina TBD  Waiver of penalties and one-half interest
Texas 5/1/18 - 6/29/18  Waiver of penalties, interest or both

 

Comments

(1) For more information on the Connecticut Fresh Start Voluntary Compliance Program, click here

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Testimonials

Recovered $130,000 of Indiana sales tax overpayments on electricity and natural gas used in processing
– Thermal processing and metail joining business
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