Taxpayers who are not disclosed in multiple states may consider requesting voluntary disclosure from multiple states through the Multistate Tax Commission (MTC). The MTC facilitates the publication of tax debts for multiple states by cooperating directly with each state`s voluntary disclosure program. A VDA is a binding agreement between a taxable person and a state that aims to promote compliance with the state`s tax laws. Typically, INNs reduce or waive penalties, limit the retrospective period (the period during which a state can make a taxable person liable for unpunished taxes), and provide some protection to taxpayers who proactively disclose past tax obligations, pay what they owe, and comply with the state`s tax laws. In addition to VDAs, a company can benefit from other tax reduction strategies. Depending on fiscal sovereignty and the specific facts and circumstances of a taxpayer, states may propose amnesty programs or negotiated conclusion agreements. In addition, a company may be able to reduce VAT debt by drawing customer exemption certificates or by demonstrating that customers have already paid usage taxes on the products sold. Participants in the Voluntary Disclosure Program who apply for an agreement for the transfer of undeclared corporate tax must submit the corresponding income tax forms for each year covered by the contract. For this reason, taxpayers cannot report the last closed fiscal year when an extension is requested. If the taxpayer uses the services of a duly designated taxpayer representative, a Power of Attorney Form 285 is also required. In order to avoid unnecessary delays that may lead to additional interest or involuntary closure of files, those documents should have been completed and made available prior to the submission of a request for voluntary publication (VDA). Participants in the Voluntary Disclosure Program who apply for an agreement to transfer an Undeclared Transaction Privilege (TPT) tax must acquire a TPT license and submit a TPT schedule in place of TPT returns.
In the event that the taxpayer used the services of a duly designated taxpayer representative, a Power of Attorney Form 285 is also required. In order to avoid unnecessary delays that may result in additional interest or an involuntary conclusion of the case, it is advisable to complete and make these documents available before submitting a request for disclosure. In order to speed up the licensing process and reduce the frequency of errors, taxpayers are encouraged to apply for a TPT licence electronically www.AZTaxes.gov. Once the statement is completed, the taxpayer has a period of fifteen days from the date of termination to pay the payment by www.AZTaxes.gov for the tax debt and interest due for the contract period. Once payment has been received by the division, the appointed auditor sends the executed agreement by secure e-mail to the taxpayer or the taxpayers` duly appointed representative….