Voluntary Disclosure Agreements

If your company, like many other mid-sized companies, is rapidly expanding their markets into new territories, it is likely that you do not have the time nor resources to consider the tax consequences that the sale of your products and or services may create state nexus. 

States across the country have nexus units that are charged with the sole responsibility to find unregistered businesses that are doing business in their state illegally. Once your company establishes nexus, the minimal presence within a state that allows states to impose their tax laws upon out-of-state businesses, you could be subject to a host of tax responsibilities. Doing business in a state without the proper registration can create significant tax exposure that accumulates over time.

Limit your past tax liabilities.

If a state discovers your company is not meeting tax requirements, the normal statute of limitations does not apply. The results can be staggering.

Hall & Company state and local tax professionals leverage established relationships with state agencies to anonymously negotiate a settlement on your behalf. A favorable agreement can eliminate the financial burden from years of unpaid tax, interest and penalties.

Create a fresh start.

In the voluntary disclosure program, we work to obtain a mutual resolution that is acceptable to both you and state administrators. The agreement can cover all types of taxes, including sales, use, income and franchise, in the same negotiation.

While the terms and conditions of each state vary, the outcome of the voluntary disclosure agreement are: • Limits the look back period to the previous four years instead of eight or more years that the company was doing business.• Waiver of all penalties.• Closes the statute of limitations on years prior to the agreed upon look back period.• Establishes registration in the state. 

Allow Hall & Company to give you peace of mind knowing that you can close the books on your past tax obligations. Moreover, we’ll help your company develop a strategic tax plan to get the company into tax compliance and identify tax planning strategies to mitigate or eliminate ongoing tax costs.

For more information call Michael Nunez, 949. 242.0587