In voluntary disclosure agreements, most states will allow a company to estimate its past commitments, which will simplify the process. With a few exceptions, Excel calendars for calculating tax liabilities are accepted instead of filing all previous VAT returns. States are prepared to make these concessions to facilitate the process, as the main objective of states is to promote voluntary compliance with future and ongoing tax collection and reporting obligations. In short, the state is prepared to forego some formal revenues and even some to curb new taxpayers. Washington: The Washington Department has temporarily extended eligibility criteria for its Voluntary Disclosure Program (VDA) from July 15, 2020 to November 30, 2020. There are exceptions for sales and usage taxes for remote sellers, as well as for VAT collected but not subject. Under the temporary extension program, the following companies are entitled to participate in the VDA program: (1) companies that have closed their tax registration before 1 January 2020, including those that have previously filed tax returns; (2) companies that were placed before 1 January 2020 under the status of „no active declaration“; (3) companies whose last contact took place before July 1, 2019, with the exception of those contacted at any time by the Department with respect to Wayfair, market equity or reduced distance sales, cannot benefit from such relief; and (4) companies that have not been designated as subsidiaries of another company through an execution contact. Applications for VDA programs under the extended program must be submitted through the department`s online application by November 30, 2020, with the company`s name being released within 15 days of the date of application and by November 30, 2020. Full payment of the amounts owed must be paid within 30 days of the date of the assessment. The expanded VDA program does not apply to the revenue tax recovered but not deposited – these taxes are subject to an unlimited refund period and 29% delay in paying a return fine. Mr.

Wash. Mr. Dept. Voluntary disclosure program temporarily expanded (last visited July 6, 2020). A voluntary disclosure agreement is a legal agreement between a state tax authority and a company that acknowledges that it has not complied with its compliance obligations with respect to sales and usage taxes. The voluntary disclosure agreement will allow the company to make all necessary registrations within the state and fulfill all remaining tax commitments. At the end of the voluntary disclosure agreement program, the company has regular monthly, quarterly or annual reporting obligations with the government based on the volume of government activity. If a company`s voluntary disclosure agreement or VDA is accepted, there are strict deadlines for obtaining all the benefits of the Voluntary Disclosure Agreement program. Keep in mind that a voluntary disclosure agreement is a legal agreement between the company and the state. Therefore, there are very clear results that need to be provided by the company, as well as a rigorous schedule as to when these items should be made available.