The North Dakota Office of State Tax Commissioner has issued updated guidance on its Voluntary Disclosure Program (VDP). The VDP allows taxpayers who have conducted business activities in North Dakota or collected but not remitted sales taxes to come forward and resolve outstanding income, withholding, and sales and use tax liabilities. The program enables taxpayers to disclose their obligations anonymously during the initial stages.
The standard look-back period for the program is three years, but the exact duration depends on the details provided in the taxpayer’s written disclosure request. The look-back period typically excludes the current tax year if the filing deadline (original or extended) has not yet passed. In cases where the taxpayer has a limited presence in North Dakota, the State Tax Commissioner may offer a prospective compliance agreement, requiring the taxpayer to comply with tax obligations moving forward rather than addressing prior liabilities. The updated guidance reinforces that taxpayers can remain anonymous throughout the disclosure process until a final agreement is reached. This approach encourages voluntary participation without fear of immediate legal action.
North Dakota’s Voluntary Disclosure Program provides a pathway for businesses and individuals to resolve unpaid tax obligations while benefiting from potential penalty waivers and confidentiality protections. The program promotes tax compliance and helps taxpayers avoid costly legal consequences.
For more information, taxpayers are encouraged to contact the North Dakota Office of State Tax Commissioner.
(Guideline – Voluntary Disclosure Program, North Dakota Office of State Tax Commissioner, January 2025)