Voluntary Disclosure Services

Typically, after a company has identified the jurisdictions in which nexus exists, there is substantial state and local tax (sales & use, income/franchise, business license) exposure relating to the prior periods in which nexus existed and no returns were filed. Normally, if a company files its tax returns in a timely manner, the statute of limitations (the period a taxing authority may audit or review for compliance accuracy) is three to four years. If no returns have been filed, the statute of limitations does not toll on the prior periods and the company remains exposed to potential assessments of tax, interest and penalties, for as far back as the business has had nexus in the State.

We will represent your company to each jurisdiction with which the company seeks to register. In this manner, your company's anonymity will be respected as we successfully negotiate voluntary compliance settlement agreements with each taxing authority. We will audit your company in each jurisdiction and prepare the agreed-to work papers and returns for submission to each jurisdiction. Once the work papers and corresponding liabilities are reviewed with your company, we will complete the necessary registration and file agreed-to tax work papers and returns in those jurisdictions the company authorizes.

Engaging sales tax experts to handle voluntary disclosures "from cradle to grave" on your behalf ensures your anonymity until the terms of the settlement, workpapers and forms are submitted to the state. Furthermore, typical benefits of a successfully negotiated voluntary disclosure agreement include waiver of all civil and criminal penalties, limitation of the look-back period, and enhanced control over the audit process, thereby minimizing exposure.