This conversation discusses Voluntary Disclosure Agreements (VDAs) as a way for businesses to come into compliance with state sales tax requirements. The conversation covers the benefits of VDAs, why businesses should voluntarily disclose sales tax, and the availability of voluntary disclosure programs in every state. The main focus is on the steps involved in the VDA process, including contacting the state, waiting for a response, submitting information, and signing the VDA agreement. This conversation discusses the process of entering into a Voluntary Disclosure Agreement (VDA) with a state tax authority. The conversation covers the steps involved in the VDA process, including the initial request, state response, signing the agreement, providing data to the state, reviewing the tax bill, and making the payment. The conversation also highlights cautionary tales and best practices for successfully navigating the VDA process. The hosts emphasize the importance of working with a tax professional and provide contact information for further assistance.

Takeaways

- Voluntary Disclosure Agreements (VDAs) allow businesses to come into compliance with state sales tax requirements.

- VDAs offer benefits such as waiving historical tax obligations, penalties, and interest.

- Every state has some form of voluntary disclosure program.

- The VDA process involves contacting the state, waiting for a response, submitting information, and signing the VDA agreement. The VDA process involves several steps, including the initial request, state response, signing the agreement, providing data, reviewing the tax bill, and making the payment.

- It is crucial to work with a tax professional who can guide you through the VDA process and ensure compliance with state requirements.
Caution should be exercised when entering into payment agreements, as failure to comply with the terms may result in additional penalties and interest.

- Proper record-keeping and understanding the taxability of sales are essential for a successful VDA process.
Submitting a VDA letter anonymously through a tax professional can help maintain confidentiality and avoid potential issues.

Chapters

00:00 Introduction to VDAs

03:07 Benefits of VDAs

06:57 Why Voluntarily Disclose Sales Tax

10:36 Voluntary Disclosure Programs in Every State

15:25 Steps of the VDA Process

24:46 Signing the VDA Agreement

26:15 Introduction to Voluntary Disclosure Agreements (VDA)

27:02 Step 1: Initial Request

27:46 Step 2: State Response

28:11 Step 3: Respond to the State's Response

29:06 Step 4: Sign and Countersign the Agreement

29:39 Step 5: Provide Data to the State

31:24 Step 6: State Review and Tax Bill

34:05 Step 7: Pay the Tax Bill

36:23 Cautionary Tales and Best Practices

45:27 Submitting a VDA

48:03 Conclusion and Contact Information

In this conversation we discuss amnesty programs, non-compliance, and remedies for businesses that need to become compliant with sales tax regulations. We emphasize the importance of understanding nexus and taxability, as well as seeking second opinions to avoid bad advice. We explore the pros and cons of registration and voluntary disclosure agreements as methods for achieving compliance. Our conversation concludes with a discussion on the value of educational and informative calls to help businesses make informed decisions and find peace of mind in their sales tax compliance.

Takeaways

• Amnesty programs that offer limited look back periods and waive penalties and interest are not commonly seen in the current sales tax landscape.
• Businesses often find themselves in non-compliant situations due to lack of awareness or denial of their sales tax responsibilities.
• The two main remedies for non-compliance are registration and participation in voluntary disclosure agreements.
• It is important to seek second opinions and collaborate with trusted advisors to avoid bad advice and make informed decisions.
• Facing compliance and getting a second opinion can help businesses achieve peace of mind and mitigate potential liabilities.

Chapters

00:00
Amnesty Programs and Limited Look Back

06:22
Recognizing Non-Compliance and Bad Advice

08:23
Understanding Nexus and Taxability

14:43
Remedies for Non-Compliance: Registration and Voluntary Disclosure Agreements

25:17
Avoiding Bad Advice and Seeking Second Opinions

28:20
The Importance of Facing Compliance and Getting a Second Opinion

32:38
Choosing Between Voluntary Disclosure Agreements and Registration

33:06
Educational and Informative What's Next Calls

34:09
Promoting Peace of Mind and Contacting The Sales Tax People

In this conversation, Ryan Johnson, Jason Parr, and Paul Johnson discuss the complexities of sales tax and the importance of compliance. They emphasize the need for businesses to understand their sales tax responsibility and the various terms and concepts related to sales tax, such as nexus and taxability. The conversation highlights the significance of conducting a thorough risk analysis and collaborating with experts to ensure compliance. The speakers also discuss the different remedies available for businesses to address sales tax liabilities, including voluntary disclosure agreements. They stress the value of seeking second opinions and collaborating with professionals to make informed decisions. The conversation concludes with a reminder of the resources available on the Peisner Johnson website and the importance of educating businesses about sales tax.

Takeaways:

- Understanding sales tax compliance is crucial for businesses to avoid penalties and liabilities.

- Conducting a thorough risk analysis and collaborating with experts can help businesses determine their sales tax responsibility.

- Properly understanding terms like nexus and taxability is essential for accurate compliance.

- Businesses should consider different remedies, such as voluntary disclosure agreements, to address sales tax liabilities.

Chapters:

00:00
Introduction and New Year's Update

01:05
The Complexity of Sales Tax

02:23
Getting Started with Sales Tax Compliance

03:19
Identifying Sales Tax Responsibility

04:46
Understanding Nexus and Risk Analysis

08:01
The Importance of Proper Nexus Study

10:25
Taxability and Risk Analysis

13:48
Remedies for Sales Tax Compliance

17:12
Amnesty Programs and Second Opinions

19:02
Collaboration and Peace of Mind

23:40
The Importance of Nexus Analysis

25:20
Educating Businesses for Informed Decisions

26:09
Resources and Conclusion