Virginia also has a separate and ongoing voluntary disclosure program to encourage taxpayers who are not registered properly and who have unreported tax liabilities to volunteer and «catch up» with their tax obligations. This is an ongoing program that has nothing to do with a tax amnesty program. Voluntary disclosure is for companies with Virginia Nexus that have not yet registered in Virginia. In exchange for progress and compliance, Virginia will limit its review and retro-assessment period to three years, reduce interest rates for the Lookback period and waive penalties. 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. Amnesty Details: The Tax Commissioner has the right to adopt guidelines for the programme and these directives are excluded from the Administrative Process Act. Taxpayers who are investigated or prosecuted for filing fraudulent tax returns or for failing to file a tax return to defraud taxes are not allowed to participate in the amnesty program. In addition, taxpayers cannot participate in the amnesty program if the assessment or non-return date is less than 90 days before the first day of the amnesty program. Eligible tax payers who have a balance after the end of the amnesty program are liable to a 20% fine on unpaid taxes, in addition to other applicable penalties. When a subject is defaulted by an agreement to pay taxes and interest under the amnesty program, the taxpayer is subject to the reinstatement of the fine imposed and the interest and the imposition of a penalty on the initial outstanding at the end of the amnesty program.
Announced in November 2018, the IRS Voluntary Disclosure Program replaces the Domestic Voluntary Disclosure Program (DVD) and the Voluntary Offshore Disclosure Program (OVDP) and proposes a single procedure for all IRS disclosures. The new voluntary disclosure program is in effect for all disclosures, both in and offshore, filed after September 28, 2018, but the IRS has room for discretion to apply the new procedures to unresolved DVD submissions received before September 28, 2018. The offer may be submitted by a third party and the taxpayer may remain anonymous while the terms are negotiated. We evaluate each offer and, if prepared to continue, the taxpayer will be asked to declare and pay his outstanding tax within 30 days. A case of voluntary disclosure begins when a signed agreement and a Nexus questionnaire reach the Department. Offers can be submitted by third parties. Voluntary disclosure of periods of less than 36 months (3 years) is not permitted to be given a limited waiting period; However, any offer is considered for waiver of the sanction. All returns and payments are due within 30 days of the department`s approval of the contract. If returns are not provided on the specified date, the penalty reduction will be cancelled. A subject interested in an advertising agreement should contact the Voluntary Advertising Programs Office before sending punitive tax returns or payments, as advance actions may disqualify a subject of the program.