Finally, I would like to say that voluntary disclosure agreements are a safe, effective and streamlined process for businesses to meet a state`s tax reporting requirements, while the company`s past mistakes in compliance with sales and compliance with tax rules are revealed. While compliance with sales and usage taxes can be a challenge, the unresolved problem or unresolved VAT obligations will lead to larger, more complex and more costly problems in the future. A VAT advisor can help you manage this process and even provide a turnkey solution to your company`s VAT compliance requirements. In voluntary disclosure agreements, most states will allow a company to estimate its past commitments, which will simplify the process. With a few exceptions, Excel calendars for calculating tax liabilities are accepted instead of filing all previous VAT returns. States are prepared to make these concessions to facilitate the process, as the main objective of states is to promote voluntary compliance with future and ongoing tax collection and reporting obligations. In short, the state is prepared to forego some formal revenues and even some to curb new taxpayers. In other words, waiting will not make this problem go away. If that is the case, it could get worse. With countries wanting to increase remote VAT surveys, you`re unlikely to stay off their radar forever. With the pioneering case of South Dakota vs. Wayfair, Inc., the U.S.
Supreme Court allowed states to compel companies to collect and transfer taxes, even if the company has no physical presence in the state. Online retailers operating across the country now face potential retroactive assessments across the country. As one of the largest states in the country, taxpayers are naturally concerned about debts for sales in Florida. Fortunately, the Florida Treasury can offer a solution for distant sellers facing the dramatic change in the previous case. If remote sellers act quickly, they may be able to start collecting and transferring taxes to Florida on a prospective basis, without paying taxes. In some cases, and only for a short period of time, there may be opportunities for taxpayers who are severely affected by Wayfair`s participation in drastically reducing their VAT debt in Florida through the voluntary disclosure program. If this is done correctly, taxpayers may not be required to pay back three years of tax while they are still participating in the voluntary disclosure program through which they can register and start collecting and transferring properly. VDAs reward voluntary compliance. If you wait for a state to „catch“ you to move forward, you don`t really come voluntarily, so the same benefits don`t apply.
The Florida Department of Finance has had a voluntary disclosure program for years. The program allows for a three-year waiting period for which the taxpayer would pay all taxes against without penalty. Florida is even proposing a modified version for taxpayers who have collected taxes and have not transferred them. But in these cases, a nominal fine of 5% must be paid. The benefit to the subject in exchange is that the Department does not open a review for previous periods of the tax at issue.