- Voluntary Disclosure Agreements (VDAs) are legal agreements between taxpayers and state tax authorities
- VDAs allow businesses to disclose unpaid or underreported taxes in exchange for benefits like reduced penalties and interest
- VDAs are common in sales and use tax compliance, especially for businesses operating in multiple states
- Sales tax is a consumption tax imposed on the sale of goods and services, while use tax is on the use of goods without paid sales tax
- Non-compliance with sales and use tax obligations can lead to significant financial burdens for businesses
- Eligibility for VDAs requires no prior contact with tax authorities regarding the taxes being disclosed
Source: taxually.com
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.
