Voluntary Disclosure Agreements

Rectifying State & Local Tax exposures through disclosure to the state

    What is a Voluntary Disclosure Agreement (VDA)?

    Given the complex nature of state taxes, multi-state businesses are prone to making mistakes with the collection and remittance of sales tax, and income tax payment requirements. Often, these mistakes can lead to the underpayment or under-collection of these taxes for multiple years.

    The purpose of a Voluntary Disclosure Agreement (VDA) is to come clean with the relevant state and voluntarily backpay taxes owed. Doing so will wipe the slate clean going forward, and enable you to continue operating in the state without fear of not being compliant.

    Benefits for your business

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      Limited lookback period (3-4 years) of past taxes due
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      Avoid penalties altogether that would normally be relevant on unpaid taxes
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      Lower interest amount due
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      Informal, taxpayer-driven process that avoids intrusive state review and desk audits
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      Remain anonymous throughout the process to avoid triggering an audit as a result of the disclosure

    Great People
    Define our Success

    Leyton’s State & Local Tax (SALT) experts work alongside your accountants and automation solutions to ensure that your business has its SALT affairs in order, providing accurate insights that enable sustainable business expansion. Whether it be identifying state tax exposures, rectifying those exposures, or providing advice on an ongoing basis, our experts will guide you through the complexities of SALT in a value-adding and efficient manner.

    Brian Ess, J.D.

    State & Local Tax Practice Leader
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    Our in-house team of highly experienced scientists, engineers, tax consultants and attorneys would love to answer all your questions and support your compliance.

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