As a business owner, it is important to be aware of your state’s sales and use tax laws. However, with so many different rules and regulations to keep track of, it is easy to make mistakes and fall behind on your tax obligations. If you find yourself in this situation, it may be time to consider a sales and use tax voluntary disclosure.
What Are Voluntary Disclosure Programs?
Voluntary disclosure programs, offered by many states, allow businesses to come forward and report any unpaid sales or use taxes without fear of penalties or prosecution. Essentially, it is a way to get back in compliance before penalty, interest, and prospective legal issues have a chance to snowball.
There are several benefits to participating in a voluntary disclosure program. First and foremost, it allows you to avoid any penalties on uncollected taxes and can even provide a reduced interest rate on unpaid taxes. Depending on the length of time you have been out of compliance, these penalties can be significant.
Of course, participating in a voluntary disclosure program does require some effort on your part. You will need to gather all relevant financial documentation and work with a tax professional to ensure that you are accurately reporting your unpaid taxes.
If you are a business owner who has fallen behind on your sales and use tax obligations, do not wait until it is too late to address the issue. Contact Thompson Tax today. By taking proactive steps to get back in compliance, you can protect your business and avoid prospective legal issues down the road.