Voluntary Disclosure Agreements (VDA) normally cover 3 to 4 years for any returns which are past the due date.  It should be noted that given the timing of extensions, the state may also require the filing of the most recent year return in addition if they adopt the federal extension, so the state was technically not past due.  Furthermore, certain states may go beyond the 3 to 4 years for the lookback period depending upon the normal statute of limitations for the applicable corporate or pass through return.   

The VDA fee is the fee for our firm applying for the voluntary disclosure agreement and managing the process for you entering the program. It should be noted that if the Taxpayer was previously contacted by the state or previously filed returns in the state, they may be prohibited from participating in the VDA.  In such a circumstance, we will apply for waiver of penalties on an hourly basis.   

We find it is easier for the original tax preparer to add an additional return since the federal return is already in their system. However, if that is not possible, then we can have an affiliated entity prepare the requested returns.

If you are interested in pursuing VDAs, then click on the link to book an appointment or to send an email. We look forward to serving you and your clients.