Sales & Use Tax
Utility Studies for Sales and Use Tax Exemptions
While specific exemptions vary from state to state most manufacturers are aware that all states offer some type of sales
Kamal Shah, CPA
February 19, 2024
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.
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