Tip of the Quill: A Journal
Georgia Voluntary Disclosure Agreement

A voluntary disclosure agreement is a legal agreement between a state tax authority and a company that acknowledges that it has not complied with its compliance obligations with respect to sales and usage taxes. The voluntary disclosure agreement will allow the company to make all necessary registrations within the state and fulfill all remaining tax commitments. At the end of the voluntary disclosure agreement program, the company has regular monthly, quarterly or annual reporting obligations with the government based on the volume of government activity. A voluntary disclosure agreement gives you control of your Nexus VAT solutions. If a company`s voluntary disclosure agreement or VDA is accepted, there are strict deadlines for obtaining all the benefits of the Voluntary Disclosure Agreement program. Keep in mind that a voluntary disclosure agreement is a legal agreement between the company and the state. Therefore, there are very clear results that need to be provided by the company, as well as a rigorous schedule as to when these items should be made available. Like almost everything in revenue and usage tax, these deadlines vary from state to state, but an experienced VAT advisor will know these deadlines and will be assured that his client will meet them. There are several pitfalls that a company should follow when it has a voluntary disclosure agreement. The subject must come forward and request the VDA from a Member State before receiving requests, communications or audit notices from the State concerned. Some states limit these requests, communications or audit communications to the specific nature of the disclosed tax, while others extend it to all state-administered taxes. This is the most common misunderstanding about voluntary disclosure agreements.

The key is that it is a “voluntary” confession… If the state contacts you on its own about certain tax breaches, the state does not see things as you voluntarily register. As has already been said, the voluntary disclosure program is not limited to personal taxes. The program includes other taxes that an individual may owe to the Georgia Department of Revenue, including revenue taxes and income taxes on employers for whom the person is personally responsible. Georgia borders two states that do not have national income taxes (Tennessee and Florida). Long-time legal residents of Georgia are buying homes or condominiums in Florida or Tennessee to change their legal residence (home). A legal residence (residence) in Georgia must include the complex rules governing the income tax of the state of residence, in order to avoid the various pitfalls that one encounters when attempting to leave Georgia from residence. A person cannot unknowingly take the necessary steps to renounce his legal stay in Georgia (residence). The Georgia Department of Revenue uses sophisticated data mining software to find people who have not left their homes in Georgia, who still have ties to Georgia and who are still considered legal residents of Georgia. Unfortunately, it could be several years before the Georgia Department of Revenue begins its investigation. Therefore, if a person has not followed the correct measures to change their legal residence in Florida or Tennessee and has not submitted returns to Georgia, the Georgia Department of Revenue can assess the person at any time.

Uns submitted returns are not subject to prescription. For more than 28 years, Litwin Law has handled a large number of state residence income tax cases, including the representation of individuals before the Georgia Department of Revenue, at the administrative and judicial level.