The temporary extension of VDA eligibility criteria in Washington offers an opportunity for business clients with business activities in Washington who are not currently registered in the state. Any transaction with Nexus in Washington, which is not currently registered, should review the temporary rules for extending the eligibility of the VDA program with a tax advisor and decide whether to consider requesting voluntary disclosure by November 30, 2020. Washington temporarily expands eligibility for the voluntary disclosure program has been saved all applications for voluntary disclosure must be submitted via the DOR`s online application. You will receive confirmation that your application has been received. In order to protect anonymity during initial contact with the DOR, many taxpayers choose to have the VDA application filed on their behalf by a tax advisor or lawyer and represent them in the VDA procedure. Clark Nuber`s SALT practice members have extensive experience working with the DOR on VDA agreements and ensure that our clients receive all the potential benefits they have under this valuable program. We`re happy to talk about the usefulness of the extended VDA program for your business. The guidelines for the temporary extension of the VDA eligibility criteria do not apply to businesses that have been evaded or misrepresented when reporting tax liabilities, nor to companies that have at any time received performance correspondence with respect to Nexus (South Dakota v. Wayfair), market equity or remote sales relief. Finally, the guidelines do not apply to companies that have collected value-added taxes but have not been transferred, while these companies can still benefit from VDA treatment of the B-O tax.
You cannot participate in a VDA if you have been contacted by the state through an exam or otherwise. If there was contact, the disclosure will be cancelled. In most cases, if you are already registered, optional data is not available. If you do not disclose all the facts about your company`s situation, including Nexus`s creation activities, and if the missing facts are essential or essential to the agreement, the VDA may be invalidated. The VDA program is not available to companies contacted by the department at any time regarding Wayfair, fair play from the marketplace or remote seller discharge. The VDA programme also does not cover companies that have collected VAT but have not submitted it. Voluntary disclosure agreements are not the only way to become correct with the state in a way that limits your liability and exposure. States may propose a national tax amnesty program that allows taxpayers to repay their taxes without penalties or interest if they register during the programming period.