VDA & Mitigation Services

Voluntary disclosure agreements (VDAs) can be an effective way to mitigate prior period sales tax exposure. But they aren't right for every company.

A voluntary disclosure agreement (VDA) is a legal means for taxpayers to self-report back taxes owed for income, sales, property, and other types of income or capital.  In exchange for voluntarily reporting the tax due, states generally grant a waiver of penalty and also a limited look back (generally 3-4 years) potentially reducing the tax due significantly as compared to an audit.  If back taxes are not disclosed, but are instead discovered through an audit, the tax payer is at a disadvantage and will end up being assessed various penalties plus interest plus all historical tax due.

A VDA sounds perfect right? Well, not always. There are other several qualifications that have to be met to participate in a VDA and they aren't always the best way forward for every business.

The nature of your tax exposure and the specific program in place by the state will dictate which program is best for you.  TaxConnex® has navigated hundreds of VDA’s and Amnesty Programs with the end result being the successful reduction of client tax liabilities and penalty payments.

As part of our service, TaxConnex® will assist with the following:

• Identification of the appropriate program for you to participate
• Negotiation of a limited look-back period and penalty waiver on an anonymous basis
• Upon acceptance of the agreement, preparation of the appropriate paperwork and tax returns to be filed with the taxing jurisdiction
• Monitoring the progress through voluntary disclosure consulting and the resolution phase

Ready to rely on the experts to conquer the chaos of sales tax? Level up your sales tax management by working with TaxConnex!

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