- Navigating multi-state sales tax is challenging due to varying state laws
- Non-compliance can lead to penalties and audits
- A Voluntary Disclosure Agreement (VDA) is an effective strategy to minimize tax exposure
- VDAs allow businesses to disclose unreported sales tax liabilities
- Businesses receive benefits like waived penalties and limited audit periods
- Key steps in a VDA include disclosing past liabilities, negotiating terms, and achieving compliance
- Benefits of a VDA include reduced penalties, limited look-back periods, audit avoidance, predictable tax exposure, and enhanced business reputation
- Eligibility for a VDA program is determined by each state’s tax authority
Source: btcpa.net
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
