VDA - Voluntary Disclosures
The underpayment of sales and use tax can occur for a number of reasons. Changes in statutes, staff turnover, new products, and errors made by vendors can cause significant liabilities to pile up until someone realizes the underpayment has occurred.
Most states have a process for remitting the accumulated underpayment of tax called a Voluntary Disclosure Agreement, or VDA. This process typically includes a communication process with the State and a formal remitting of the taxes due. The VDA process usually releases the taxpayer from additional penalties and interest that would be assessed if discovered during an audit.
SALT Solutions has handled this process for many of our clients as we have found exposure during our Reverse Audit services as well as direct VDA engagements from national clientele. No one likes to hand over unexpected liabilities; however the long-term benefits of protecting yourself against future audit headaches while ensuring your company’s compliance are vital.
Should you need this type of representation, or if you have an interest in one of our teams coming onsite for a free sales and use tax review to identify both exposure concerns as well as significant refund opportunities, please contact us.