SEE ALSO >>> Tax Services
Companies with operations, representatives or independent contractors in multiple states are often unaware of tax and payment obligations which may exist. Not being informed can lead to delinquent filings and payment of taxes owed (corporate income, sales, use and other taxes) to the state. Depending on the type of tax owed, management may not be aware of the obligation or the severity of the situation until they receive a letter from the State Department of Revenue. At this point, it’s too late to to address and resolve the situation. The good news is that Georgia offers a voluntary disclosure program (VDP) designed to help those with tax issues come into compliance with state regulation. Companies that owe sales, corporate income, payroll, and use tax can participate in this program to conform. To help clients, prospects and others understand this program and its benefits, Wilson Lewis has provided a brief summary below.
Qualification
It’s important to be aware that in order to qualify for the VDP certain criteria must be met including;
Anonymous applications are accepted by the Department of Revenue so long as the designate is identified in the application.
Benefits
For qualifying taxpayers, there are several benefits to participating in the program. In most cases, qualified participants will receive a waiver of all penalties, however it’s important to note that although penalties are waived, interest for the penalties waived must still be paid for years under examination.
Beyond this, the number of years (look back period) a tax payer must disclose and pay previous liabilities under the program is also limited. Generally, the VDA allows for a three year look back period but this can be reduced or extended depending on a number of variables. Below is a brief explanation of the standard look back periods for qualifying taxpayers:
Please note that if a small amount of tax is due from prior periods, it’s unlikely there will be a waiver of liability as part of the VDA.
Contact Us
The VDA is a useful tool in attaining compliance with the Department of Revenue without paying high penalties and interest. However, before applying for the program it’s essential to consult with a qualified professional to assess your situation. If you would like to learn more about VDA or have questions about tax planning and compliance, Wilson Lewis can help. For additional information, call 770-476-1004, or click here to contact us. We look forward to speaking with you soon.
As the 2024 presidential election approaches, tax policy remains a pivotal issue in the platforms…
The 2024 legislative session in Georgia concluded on March 28th, marking a significant period of…
The Department of Labor (DOL) has announced a significant update to The Fair Labor Standards…
The Department of Treasury and the Internal Revenue Service have released Announcement 2024-19, which provides…
On March 11, President Biden presented a budget proposal that seeks to enact nearly $5…
The SECURE 2.0 Act, enacted in 2022, significantly enhances the original Setting Every Community Up…