Kentucky Voluntary Disclosure Agreement


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If a company`s voluntary disclosure agreement or VDA is accepted, there are strict deadlines for obtaining all the benefits of the Voluntary Disclosure Agreement program. Keep in mind that a voluntary disclosure agreement is a legal agreement between the company and the state. Therefore, there are very clear results that need to be provided by the company, as well as a rigorous schedule as to when these items should be made available. Like almost everything in revenue and usage tax, these deadlines vary from state to state, but an experienced VAT advisor will know these deadlines and will be assured that his client will meet them. 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. Supporting documents that include full disclosure of all relevant facts to the tax advisor and advice received; and there are several pitfalls that a company should follow when it has a voluntary disclosure agreement. The subject must come forward and request the VDA from a Member State before receiving requests, communications or audit notices from the State concerned. Some states limit these requests, communications or audit communications to the specific nature of the disclosed tax, while others extend it to all state-administered taxes.

This is the most common misunderstanding about voluntary disclosure agreements. The key is that it is a “voluntary” confession… If the state contacts you on its own about certain tax breaches, the state does not see things as you voluntarily register. The board also considered whether the application of penalty 132.290 (3) was appropriate at 10%. The statutes authorize the application of the non-property penalty, which is voluntarily listed (compared to 20% if the unreported property is unintentionally mentioned). Although the department generally waives such penalties as part of voluntary disclosure, there has been no waiver since Chegg does not pay tax during voluntary disclosure. (Notice on 4). Chegg requested the waiver of sanctions under the “appropriate cause” standard set out in standard 103 KAR 1:040. In particular, Mr. Chegg submitted that she had provided advice when filing the tax return and that she had relied on the advice of her tax advisors. (Id.) As explained by the Board of Directors, the regulations require that the subject be subject to three requirements in order to obtain the abandonment of sanctions in order to obtain a waiver of the sentence, which simplifies the process. With a few exceptions, Excel calendars for calculating tax liabilities are accepted instead of filing all previous VAT returns.

States are prepared to make these concessions to facilitate the process, as the main objective of states is to promote voluntary compliance with future and ongoing tax collection and reporting obligations. In short, the state is prepared to forego some formal revenues and even some to curb new taxpayers. Chegg entered into a voluntary disclosure agreement with the department for the 2009 and 2010 fiscal years. (Id.) In voluntary disclosure, Chegg classified part of his kentucky manual as “personal property for a-state shipping.”