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Voluntary Disclosure Agreements
March 2007

Policy

The Texas Comptroller of Public Accounts is committed to promoting taxpayer compliance. In an effort to accomplish this objective, a Voluntary Disclosure Agreement (VDA) is available to taxpayers who want to comply with our tax laws. Standard written agreements will be made available for all taxes administered by our agency to which we can enter into such agreements.

In our commitment to fairness in the administration of our taxes, we adhere to the following general guidelines:

  • Liabilities due to failure to collect taxes and/or file the applicable reports will be limited to reports due four years from the initial taxpayer contact date.
  • All taxes that were actually collected by the seller need to be remitted (i.e., there is no four-year limitation on tax collected not remitted).
  • Statutory penalties will be waived.
  • Interest will be waived on taxes voluntarily disclosed and paid that were not collected.
  • Agreements will be offered to taxpayers who have not been contacted regarding an audit or investigation, either verbally or in writing.

Process

Initial Taxpayer Contact

A company representative initiates the process on behalf of their anonymous client by contacting the Business Activity Research Team (BART) in writing at:

Texas Comptroller of Public Accounts
Business Activity Research Team
PO Box 13003
Austin, Texas  78711-3003
(800) 688-6829
fax: (512) 305-9918

The following information must be provided:

  • The type of entity (i.e., corporation, partnership, etc.)
  • A brief description of the company's business including its specific activities in Texas.
  • Date the company began business and date the company began business activities in Texas.
  • Disclosure of the tax type (i.e., sales, franchise, etc.) for which an Agreement or Agreements is/are requested and specify any taxes that the corporation is already set up for in Texas.
  • Whether the company has been contacted by the Texas Comptroller of Public Accounts.
  • Whether the company has collected, but not remitted, any Texas tax.
  • An estimate of the amount of taxes due.
  • Any additional information or extenuating circumstances to support the request.

Processing the VDA

  • Once a determination is made that the taxpayer has complied with our program guidelines, preliminary approval will be obtained from the Deputy Comptroller to enter into a VDA.
  • A VDA will be prepared and sent to the company representative with the appropriate tax applications and Texas Nexus Questionnaire (TNQ) for completion and return within thirty (30) days.
  • Upon receipt of the signed VDA and package of the appropriate tax applications and completed TNQ from the taxpayer, BART will perform an initial review process to determine if the taxpayer has been contacted regarding an audit or investigation that might disqualify them from entering into a VDA. The VDA, after verification of no audit or investigation, is signed and executed by the Manager of Audit.
  • The executed VDA is returned to the taxpayer with the applicable reporting forms. The tax data and payment of the voluntarily disclosed taxes are due back to the BART group within sixty (60) days.

General Information

  • The Comptroller of Public Accounts reserves the right to deny the waiver of penalty and/or interest or to void the agreement if a taxpayer does not adhere to our program policies and procedures.
  • Disclosure periods remain open to future audit.
  • Any potential problems regarding full payment of the disclosed taxes should be included in the "initial taxpayer contact" letter, along with any request for payment agreement.
  • These policies and procedures may be changed at any time by the Comptroller.
  • As a result of House Bill 1840 of the 77th Legislative Session, the Comptroller may waive penalty and interest imposed on certain delinquent unclaimed property. Taxpayers who meet the appropriate criteria can now enter into a VDA with our agency.

Multistate taxpayers who wish to approach a number of states simultaneously may wish to use the services of the National Nexus Program of the Multistate Tax Commission.

For more information on Voluntary Disclosure Agreements, please call toll free (800) 688-6829 or write:

Texas Comptroller of Public Accounts
Business Activity Research Team
PO Box 13003
Austin, Texas  78711-3003

96-576
(03/2007)

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