Rhode Island Voluntary Disclosure Agreement

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Businesses considering a self-reporting program have options. You can complete and submit the application yourself or work with a professional who can help you navigate the process and prepare a VDA. Most applications are 2 to 3 pages long and require explanations of the nature of the applicant`s activity, the activity in the state and the reasons for the application. They will not be included in a volunteer program without making an effort. However, the more you rely on external resources, the less you have to do it yourself. If a company`s volunteer agreement or VDA is accepted, there are strict deadlines that must be met to obtain all the benefits of the Voluntary Disclosure Agreement program. Remember that a voluntary disclosure agreement is a legal agreement between the company and the state. So there are very clear results that need to be provided by the company, as well as a strict timeline as to when these items are to be made available. Like almost everything in sales and use tax, these timelines vary from state to state, but an expert revenue tax advisor will know these timelines and be certain that their client will meet them. In voluntary agreements, most states allow a company to estimate its past commitments, simplifying the process. With a few exceptions, Excel calendars for calculating tax commitments are accepted instead of the presentation of all previous VAT returns. States are prepared to make such concessions to facilitate the process, since the main objective of States is to promote voluntary compliance with future and ongoing collection and reporting obligations. In short, the state is ready to give up some of the formalities and even some revenue to bring new taxpayers into the herd.

Participation in a volunteer agreement (VDA) may be something you should consider if you haven`t signed up to collect in a state where you should have it. But is a VDA what you need? From talking with our customers, we know that there are a lot of questions when it comes to VDAs….