VDA stands for a Voluntary Disclosure Agreement. It is an agreement with a tax authority allowing you to voluntarily disclose unreported tax liabilities and settle them on mutually agreed terms, with reduced look-back period, abated penalties and lower (or waived) interest.
Businesses or individuals with unreported income, overstated deductions, or other tax errors they want to rectify proactively.
Reduced look-back period, abated penalties, reduced interest, and peace of mind by resolving past tax issues.
Eligibility varies by state and tax authority. You’re not eligible if you’re already under audit or investigation.
Details of the unreported income, tax period involved, and any mitigating factors.
Payment of back taxes, abated penalties, and potentially waived interest.
Once both parties agree and sign the agreement.
You’ll need to comply with the agreed-upon payment schedule and cooperate with the tax authority throughout the process.
Yes, but only before it’s finalized. If you withdraw before signing, the tax authority is required to expunge your records. However, once you sign the agreement it’s binding.
Confidentiality varies by jurisdiction, but details about the specific taxpayer and their VDA may be shared within the tax authority.
Can't find what you're looking for?
We would love to chat with you.
Refund of Tax Paid on Software Purchases by Companies Located Illinois, Massachusetts, New York, Pennsylvania, Washington or Utah The multiple
The Business Personal Property Tax Business Personal Property Tax is a tax assessed on tangible personal property businesses own. This
State and local taxes affect every business in Illinois in one way or another. To ensure their clients remain tax
Sales & use tax audit notices are never a great
The 3 Challenges When you think about real estate tax
What is a sales tax voluntary Disclosure Agreement (VDA)? A
