What is a sale tax disclosure? You might want to file for a voluntary sales tax disclosure if you want to avoid penalties. However, you have to meet the test.
Transcript
Why would you want to file a voluntary disclosure for unpaid sales tax? The answer is quite simple: penalties. You want to be able to pay back the sales tax without having penalties ranging from 50 to 100 percent. According to most states, this is when a voluntary disclosure agreement, or VDA, will most likely work for you. Number one: you never filed paperwork with the state for your business. Number two: you never filed a single sales tax return with the state. Or, number three: you have not been contacted by the state for an audit.
In recent times, I was told by a business owner that now that they are currently undergoing a sales tax audit, they want to come clean. But that’s not going to happen when you’re trying to benefit from a voluntary disclosure. That’s the equivalent of wanting to come clean after a police officer has already pulled you over for speeding, and now you’re going to say “officer, I want to come clean with the drugs that are underneath my seat.” But the bottom line is that you can’t come clean after you’ve already been caught. Call us if you want to get more information on a sales tax voluntary disclosure. Thank you.
