Voluntary Disclosure and Sales Tax Registration Assistance
Once you’ve established sales tax nexus in a particular state, you are required to register before beginning to collect sales tax from your customers and (along with any use tax obligation) remitting such tax to the state. We, along with our consulting partners, can assist you with registration, including such services as providing appropriate forms, reviewing forms before they are submitted or completing of the forms for you.
But be careful—registration can also be costly! If you’ve determined that nexus was established in a past period, simply registering will expose your earlier responsibilities. In other words, a state can go back an unlimited number of years and assess tax, penalties and interest on all unfiled tax return periods, back to the first day when nexus was established. However, there is a procedure called voluntary disclosure that allows you to negotiate with the state to limit your liability before you register. Based on the number of open periods and estimated liability exposure, we can help you select the best compliance approach, including registration, voluntary disclosure agreements or, if available, open amnesty programs.
Voluntary disclosure agreements may be especially beneficial if the number of open tax periods or estimated tax liability is significant. These agreements, typically negotiated on an anonymous basis, will limit the number of years you have responsibility and close previous periods. Penalties are typically waived. This alternative can, depending on your particular situation, substantially reduce your sales tax liability exposure. We can help you determine if this is an appropriate solution and develop a compliance strategy.
Contact us to discuss our voluntary disclosure services and the various roles in which we can assist you.
Do you have a pressing sales tax question and don’t know where to turn to for expert advice?
Get your question answered with a 1 hour private and personal phone consultation with leading sales tax expert Diane Yetter.
Have specific questions related to economic nexus?
Get an analysis of your risk level post-Wayfair and get your questions answered.