Voluntary Disclosure Agreement Program
Idaho’s voluntary disclosure agreement (VDA) program is designed to help businesses involved in multistate commerce voluntarily resolve prior tax filings and debts. Our goal is to provide these businesses a way to settle potential debts from past activities in Idaho.
- Possible waiver of some or all penalties, depending on the circumstances.
- Limit the tax due to an agreed-upon look-back period. The length of the look-back period depends on the type of business activities and the tax debt in question. Idaho law requires all taxes collected from customers or withheld from employees to be paid.
- The look-back period for voluntary disclosure may be shorter than it would be if the Tax Commission discovered your noncompliance.
To qualify for a voluntary disclosure agreement, your business must:
- Not be under current review by the Idaho State Tax Commission.
- Agree to:
- Register for all applicable permits.
- File returns or schedules specified in the agreement.
- Pay the tax due plus any accrued interest for the look-back period.
If you want your business to enter into our VDA program, please provide the following information:
- The nature and extent of the company’s business activities in Idaho, including:
- Date the activities first began in Idaho.
- Whether the company has employees or representatives in Idaho.
- The company's marketing activities in Idaho.
- Number of years doing business in Idaho.
- A list of the type of property owned and/or leased in Idaho.
- Description of equipment leased for use in Idaho.
- Number and length of time representatives acting on company's behalf or employees have been in Idaho.
- How Idaho business is solicited.
- A statement indicating whether the Idaho State Tax Commission or the Multistate Tax Commission has contacted the company, and the nature of the contacts.
- Whether the company has collected or withheld tax that wasn’t paid to Idaho.
- The type of tax being disclosed, and a statement indicating why the company isn't disclosing other tax types.
- A declaration of estimated tax debt for the disclosure period, by tax type.
- A declaration of estimated tax debt for periods before the disclosure period, by tax type.
- The voluntary disclosure agreement terms proposed by the company.
Confidentiality: You don’t have to reveal the name of your company or any information that could readily identify it until the agreement is finalized. If you'd like to submit material for our VDA program to review, please contact us.
After we receive your company's request to enter into a voluntary disclosure agreement, we review the information provided. If you satisfy all the requirements, the Tax Commission may enter into a voluntary disclosure agreement with you. The agreement will specify the look-back period and will become effective only when signed by you or your representative.
- If the Voluntary Disclosure Program staff recommends acceptance of an offer, an official agreement is prepared for final approval and authorizing signatures.
- The agreement is signed in duplicate by the appropriate tax commissioner, and both agreements are sent to the company's representative for a signature.
- One of the original signed agreements is returned to the Tax Commission along with the required tax registration, tax returns and/or tax schedules, and payment for the amount of tax due. Interest is computed and billed later.
- The company has 30 days to execute the agree¬ment and provide the requested information, registration, returns, and schedules.
- Once the agreement is signed and the Tax Commission issues an assessment, your company has 30 days to pay it. Any payments of $100,000 or more must be made electronically. If we don’t receive payment within 30 days, a penalty for failure to pay the tax is automatically im¬posed and interest continues to accrue.
- Note: An offer can be denied at this stage. If an offer is denied, the Tax Commission sends a letter to the company's representative.
- If any of the information received in support of the agreement is misrepresented, the Tax Commission may consider the agreement void and assess additional tax, penalty, and interest.
- If you fulfill the terms of the agreement, the Tax Commission won’t assess tax, penalty, or interest for any period before the look-back period.
- If your company has collected tax from customers or withheld tax from employees but hasn’t paid it to the state, the Tax Commission will require all of the tax collected or withheld to be paid.
If your business owes taxes in more than one state, you may consider applying for multi-state voluntary disclosure through the Multistate Tax Commission. More information about the MTC’s Voluntary Disclosure Program and the application for Multi-state Voluntary Disclosure is available at http://www.mtc.gov/Nexus-Program/Multistate-Voluntary-Disclosure-Program