Sacramento, CA CPA for Voluntary Agreements
Sacramento CPAs for voluntary agreements at Cook CPA Group can help your business enter into a voluntary disclosure agreement for unpaid taxes. Call now.
Through a voluntary disclosure agreement, taxpayers can receive benefits if they proactively disclose their tax liabilities. Most states offer voluntary disclosure agreements as a way to encourage companies and other taxpayers to come into compliance with the state’s tax laws. In California, companies and taxpayers can enter into voluntary disclosure agreements if they meet certain eligibility requirements; in exchange for disclosing their tax liability information, companies and taxpayers can avoid penalties. If your business would like to enter into a voluntary disclosure agreement, seek the help of an experienced accountant as soon as possible. A Sacramento voluntary agreement accountant from Cook CPA Group can assist taxpayers move forward from tax issues by entering into a voluntary agreement.
Understanding a Voluntary Agreement for Sacramento BusinessesIf a business discovered that they have unpaid taxes or are at risk of having unpaid taxes, they can enter into a voluntary disclosure agreement. Many states off them—they are a chance for a business to reduce the number of penalties they face for not having paid their taxes in exchange for full disclosure of information about their liabilities. In a typical voluntary disclosure agreement, states only have a look-back period of three to four years; if a business’s tax exposure extends beyond the look-back period, the liabilities are waived. Businesses can disclose tax information going back up to six years. Voluntary agreements are commonly used as a method of exposure resolution. If, for example, a company has not registered with tax authorities in a state where they have nexus, a voluntary disclosure resolution can allow them to receive certain benefits in exchange for the disclosure of information about their business connections in that state, the payment of the taxes they owe, and the agreement that they will comply with the state’s tax laws in the future. Companies can resolve their delinquency by actively working to enter into a voluntary disclosure agreement. During a voluntary disclosure agreement, businesses can protect themselves from future audits, reduce the cost of doing business, and eliminate the possibilities of liabilities connected to future business dealings.
What Is Included in a Voluntary Disclosure AgreementVoluntary disclosure agreements are centered around the disclosure of information about a company’s tax liabilities. Typical voluntary disclosure agreements in the United States contain the following information:
- A description of what the taxpayer makes or sells or the service it provides, along with a description of the nature of the transactions that comprise their business
- A description of the way that the taxpayer markets its services or products
- A description of the business’s activities that create nexus within the state and the date on which they established nexus
- A description of the prior contracts that were made between the taxpayers and the department of revenue
- Information about the taxpayer’s sales taxes and use taxes, whether or not the taxpayer collected taxes from the customer, and whether the taxpayer remitted those funds (use taxes will include a description of the purchases that the taxpayer made but didn’t pay use taxes for)