Idaho State Tax Commission

Idaho State Tax Commission

Voluntary Disclosure Agreement Program

Idaho’s voluntary disclosure agreement (VDA) program helps businesses involved in multistate commerce voluntarily resolve prior tax debts. Our goal is to provide these businesses a way to settle potential debts from past activities in Idaho. The benefits of this program may include penalty waivers and a limited look-back period.

Information needed

Businesses that want to enter into our VDA program should provide the following information:

  1. The nature and extent of the company’s business in Idaho, including:
    1. Date the activities first began in Idaho.
    2. Whether the company has employees or representatives in Idaho.
    3. Whether the company owns or leases any property in Idaho.
    4. The company's marketing activities in Idaho.
  2. A statement indicating whether the Idaho State Tax Commission or the Multistate Tax Commission has contacted the company, and the nature of the contacts.
  3. Whether the company has collected or withheld tax that was not paid to the state.
  4. The type of tax being disclosed, and a statement indicating why the company isn't disclosing other tax types.
  5. A declaration of estimated tax debt for the disclosure period, by tax type.
  6. A declaration of estimated tax debt for periods before the disclosure period, by tax type.
  7. The voluntary disclosure agreement terms proposed by the company.

Company representatives can maintain confidentiality by not revealing the name of the company or any information that could readily identify the company until the agreement is finalized. If you'd like to submit material for review by our VDA program, please contact us.

Preparing the Voluntary Disclosure Agreement

After we receive the company's request to enter into a voluntary disclosure agreement, we review the information provided at various levels within the Tax Commission.

The length of the look-back period will depend on the facts and circumstances provided in the agreement request. If there is clear business activity in Idaho, a three-year look-back period is generally recommended. In some circumstances, where the company’s activities in Idaho are limited, we may consider a look-back period of less than three years or prospective compliance. The Tax Commission will require the company to pay all taxes it has collected.

Once the Tax Commission has approved a request for acceptance, the voluntary disclosure agreement is prepared for final approval and signature. The agreement is signed in duplicate by the appropriate commissioner, and both agreements are sent to the company’s representative for 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 at a later date. If an offer is denied, a letter is sent to the company’s representative.

If the business owes taxes in more than one state, it 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.aspx?id=4967.

Note: Any payments of $100,000 or more must be made electronically.

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Last updated Jan. 29, 2013