City of Chicago Changes Terms of Voluntary Disclosure Program

The City of Chicago has changed the terms of its voluntary disclosure (VDA) program. In addition to waiving all penalties for qualified participating taxpayers, the city will now also waive 50% of interest that would apply. This is a significant change as the city did not previously waive any interest as part of its VDA program. It also should be noted that the city provides for a limited look-back period of 4 years for qualified taxpayers participating in the program. If under audit an error rate of less than 10% is discovered for periods disclosed, the additional tax, interest and penalty will be due for the amount not previously disclosed.  If the error rate is greater than 10%, the Department reserves the right to dissolve the voluntary disclosure agreement. For more information regarding the VDA program, you can visit the City of Chicago website. (City of Chicago Tax Collection and Enforcement – Apply for Voluntary Disclosure of Business Taxes webpage)

Posted on January 2, 2018