Dc Voluntary Disclosure Agreement
Are you a business owner operating in the District of Columbia? Do you have any unfiled taxes or underreported income? If so, you may want to consider entering into a DC Voluntary Disclosure Agreement.
A DC Voluntary Disclosure Agreement (VDA) is a program offered by the District of Columbia Office of Tax and Revenue (OTR) that allows taxpayers to come forward voluntarily to correct any underreporting or non-reporting of taxes, without the fear of penalties or prosecution.
By entering into a VDA, taxpayers can avoid harsh penalties and interest charges that may be imposed for noncompliance with the District’s tax laws. Additionally, entering into a VDA may help avoid the risk of a criminal investigation, which could result in litigation and reputational damage.
The program is open to individuals, businesses, and other entities, and is available for all types of taxes administered by the OTR, including income tax, sales and use tax, and franchise tax.
To enter into a VDA, taxpayers must submit a written request to the OTR. The request must include a description of the taxes and periods for which the taxpayer seeks relief, a statement that the taxpayer is not currently under audit or investigation by the OTR, and a statement that the taxpayer agrees to comply with all District tax laws going forward.
Once a taxpayer’s request is accepted, the taxpayer will be required to pay any outstanding tax liabilities, but will not be subject to any penalties or interest charges that would have been assessed if the taxpayer had not come forward voluntarily.
Overall, if you have unfiled or underreported taxes in the District of Columbia, a DC Voluntary Disclosure Agreement may be a good option to consider. By voluntarily coming forward and correcting any noncompliance with the District’s tax laws, you can avoid penalties and reputational damage, and bring peace of mind to your tax compliance.