The 411 on Virginia's Voluntary Disclosure Program.
Updated: Jun 21, 2021
By: Brian Barto, EA
We work with clients in Winchester, VA to resolve tax debt problems. Virginia Tax has a program to encourage businesses that are not properly registered and that have unreported tax liabilities to come forward voluntarily and “catch up” on their tax responsibilities. This is an ongoing program and is not related to any tax amnesty program.
The typical candidate is an out-of-state business that has enough activity in Virginia to establish a nexus for sales and use tax and/or income tax but has not yet registered or filed returns. To be eligible for the Voluntary Disclosure program, a business must not already be the subject of any compliance inquiry. Of course, in-state businesses may be eligible as well. Other situations will be considered on a case-by-case basis.
The program is usually not appropriate for a taxpayer with just a delinquent individual income tax return unrelated to a business. (These taxpayers may, however, seek penalty waiver or other relief through other channels, such as a regular offer-in-compromise.)
A typical agreement requires that the business:
Register with Virginia Department of Taxation
Commit to future compliance
Perform a self-audit for a three-year look-back period, and
Pay the tax and interest due for the look-back period
In exchange, some or all of the late penalties for the look-back period may be waived and older periods may be waived entirely.
The offer may be submitted by a third-party representative, and the taxpayer may remain anonymous while terms are negotiated.
At Tax Debt Resolution Services of Winchester VA, we help you eliminate your IRS issues and the stress the IRS has created in your life and help you get back to doing what you do best! We help our clients in Winchester, VA to resolve their tax debts! If you need assistance please feel free to contact me at 540-662-4432 or firstname.lastname@example.org.
24 Weems Lane
Winchester, VA 22601