Utah Voluntary Disclosure Agreement

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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. Short-term tenants in Utah can use a voluntary advertising contract (VDA). A VDA offers hosts the ability to proactively disclose tax debts from the previous period, in accordance with a binding agreement with the Utah State Tax Commission. DAPs are proposed to promote cooperation with national tax legislation and may lead to the adoption of some or all penalties and interest. 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.

A voluntary disclosure agreement is a legal agreement between a public tax authority and a company that acknowledges that it has not fulfilled its obligations with respect to sales and use tax compliance. The voluntary disclosure agreement will allow the company to enter into all necessary internal registrations and fulfill all outstanding tax liabilities. In the future, once the Voluntary Disclosure Agreement program is concluded, the company will have regular monthly, quarterly or annual VAT reporting obligations with the state, depending on the importance of the activity within the state. Use our accommodation tax finder to get a tax report specific to your address in Utah….