West Virginia Revises Publication Discussing Voluntary Disclosure Procedures

In the revised publication, the West Virginia Department of Revenue explains a Voluntary Disclosure Agreement as an opportunity for qualified businesses and individuals to come forward and comply with State tax laws in exchange for a waiver of civil or criminal penalties or prosecution. Additionally, the State may agree to limit the number of returns to be filed, waive penalties, or not audit, assess or demand payment of taxes prior to the look-back period. Although the look-back period is determined by the specifics of the case, it is generally no less than three years. To request an Agreement, the a written, dated request must be made that includes the type of business, activities conducted generally and specifically in West Virginia, types of taxes to be disclosed and those currently being filed, and the relief sought.

Taxpayers qualify for this program if they have not registered or filed a return, been contacted by the Department of Revenue or Multi-State Commission on behalf of West Virginia, and are not under audit or investigation by the Department. Additionally, the taxpayer must agree to disclose all applicable taxes, register and obtain a valid business registration certificate and register with the Secretary of State’s Office (if not a sole proprietor or general partnership). (TSD-412, West Virginia State Tax Department, November 2009)

Posted on January 30, 2010