Washington dor vda

You will receive an email from a Voluntary Disclosure Program representative shortly after submitting your anonymous application. You will be asked to disclose your identity directly to the representative you will be working with. If you do not return the Voluntary Disclosure Agreement by the due date then your application will not be approved and any tax and interest owed could be subject to an extended look back period of seven years plus the current year as well as penalties of up to 39 percent of the tax due.

You have the right to appeal any action, decision, or assessment made by the department in accordance with WAC The period covered by the Voluntary Disclosure Agreement remains open and is qualified to allow for future field audit verification.

All applicable tax, penalties, and interest must be applied in accordance with statute. The Voluntary Disclosure Program, which is administered by the Audit Division, does not have settlement authority. If you would like to request further assistance please refer to WAC regarding appeals. If you are registered and determine that you have unreported or underreported income for prior periods, you will need to file an amended return s. Late payment return penalties up to 29 percent may be applied if you originally filed no business or zero returns, were on active non-reporting status, or your original returns were filed late.

In addition, the 5 percent assessment penalty for substantially underpaid tax may also apply if you underreported your liability by 20 percent or more. As a registered business, the statute of limitations for amending returns is the prior four years plus the current year, unless you have collected retail sales tax and not remitted it or there is evidence of evasion or misrepresentation RCW Home Open a business Get started Apply for a license Plan for taxes.

Run Grow Close. Forms by name Forms by subject Publications by name Publications by subject. You will receive a confirmation that your application has been received. In order to protect anonymity during the initial contacts with the DOR, many taxpayers choose to have a tax advisor or attorney submit the VDA application on their behalf and represent them through the VDA process. We would be happy to talk to you about whether the expanded VDA Program makes sense for your business.

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This article or blog contains general information only and should not be construed as accounting, business, financial, investment, legal, tax, or other professional advice or services. Before making any decision or taking any action, you should engage a qualified professional advisor. View All Events.

View past newsletters. The following categories of businesses will be eligible for the benefits of the VDA program between July 15, and November 30, Businesses that were previously registered with the DOR but closed their tax registration or were placed on Active Non-Reporting status prior to January 1, Under the normal rules, businesses that were previously registered with the Department for any period of time were not eligible for the VDA Program, even if their registration was voluntarily closed many years ago.

Businesses who were contacted by the DOR for tax enforcement purposes prior to July 1, Under the normal rule, taxpayers that were contacted at any point by the DOR for tax enforcement purposes were not eligible for the VDA Program, but now those businesses may qualify as long as the most recent contact did not occur within the last year. COVID business relief is available.

Participation was previously limited to those businesses that never registered with or reported taxes to the state, and those that had never been contacted for enforcement purposes. Learn more information on the program and if you qualify. Businesses can begin the process by submitting an online application.

Once the application is approved, penalties will be partially or fully waived, and interest will be imposed at the statutory rate. Revenue administers nearly 60 categories of taxes that help fund education, social services, health care, corrections, public safety, natural resource conservation and other important services Washington residents count on.