Voluntary Disclosure Program

The Department's voluntary disclosure program is administered through the Compliance Division.

The Department's position on disclosures is determined by the individual fact pattern for each disclosure applicant. The following are guidelines for voluntary disclosure applicants:

• In order to be considered for the voluntary disclosure program, the disclosure applicant must not have been contacted by the Department prior to initiating the disclosure process.
• Nexus Determination - If sufficient nexus exists for sales and use tax or corporate and net worth tax, the Department will generally agree to limit prior period exposure to (3) three years or to the date nexus was established, whichever is the lesser period.
• If the taxpayer has been collecting sales taxes from customers and not remitting the tax, the Department will extend the prior period exposure to include all liabilities of this type.
• The Department will agree to waive all penalties, provided that the tax and interest due is paid.
• In the event that nexus is arguable or there is no traditional nexus, the Department may agree to prospective filing or to a shorter prior period exposure.
• Questionable Taxability - If there is questionable liability, that is, if it is not entirely clear whether a taxpayer's sales are subject to the tax, the Department may agree to prospective filing or to a limited prior period exposure.