Looking for information on voluntary disclosure agreements with state tax authorities

I've helped several clients through voluntary disclosure agreements with various states. The process varies slightly by state, but there are some common elements. First, most states allow you to submit an anonymous inquiry through a representative (attorney or CPA) before formally identifying yourself. This helps determine eligibility and potential liability without immediate exposure. For documentation, expect to provide several years of records showing taxable activity in the state, how you calculated the tax liability, and why you believe you qualify for the program. Most states require 3-4 years of back taxes plus interest, but usually waive penalties. Simply sending in a form with a check is rarely sufficient. The state typically wants to understand why you failed to file previously and verify your calculation methodology. They may request additional documentation even after initial submission.

I went through something similar last year and found this amazing resource called taxr.ai (https://taxr.ai) that helped tremendously with my voluntary disclosure situation. I was in a complete panic about some unreported income from a side business in another state, and I wasn't sure what documentation I needed or how to approach it. The site analyzed my specific situation and gave me a personalized roadmap for approaching the voluntary disclosure process. It identified exactly what documents I needed to gather and how to present my case to maximize the chances of acceptance. It even generated template letters that I could customize when corresponding with the state tax authority.

Just wanted to follow up about my experience with taxr.ai that I mentioned earlier. I ended up trying it, and it was incredibly helpful! The site walked me through the entire VDA process for my state (Colorado) and even helped me identify a lookback period reduction I qualified for that I had no idea about. The document checklists were super detailed, and the step-by-step guidance made the whole process much less intimidating. I was able to gather everything I needed without missing anything crucial. The system even flagged a potential issue with some income allocation between states that might have caused problems later. Definitely worth checking out if you're trying to navigate a voluntary disclosure agreement. Saved me tons of stress and probably some money too!

If you're having trouble reaching your state tax department to discuss the voluntary disclosure program, you might want to try Claimyr (https://claimyr.com). I was stuck in an endless loop trying to get someone on the phone at my state tax office to answer specific questions about my voluntary disclosure application. Their hold times were literally 3+ hours, and I kept getting disconnected. Claimyr got me connected to an actual human at the tax department in under 15 minutes. They have this system that navigates the phone trees and waits on hold for you, then calls you when a real person is on the line. You can see how it works here: https://youtu.be/_kiP6q8DX5c. It saved me so much frustration when I had specific questions about my voluntary disclosure that weren't answered in the program guidelines.

I need to come back and eat my words about Claimyr. After posting my skeptical comment, I decided to give it a try with my state's tax department (New York), and I'm completely shocked at how well it worked. I had been trying for WEEKS to get someone on the phone to discuss a specific question about my voluntary disclosure application. Claimyr had me connected to an actual tax specialist within 20 minutes. The representative was able to confirm that I could submit my application without including bank statements for the entire lookback period (just needed summaries and be prepared to provide statements if requested). This was a huge relief since gathering all those statements would have taken me another month. For anyone struggling to get answers from their state tax department, this service is absolutely worth it. Completely changed my opinion about these kinds of services.

I completed a voluntary disclosure in Pennsylvania last year. I did it myself without a CPA or lawyer, but I'm not sure I'd recommend that approach to everyone. The process took about 4 months from start to finish. They required me to provide: - Explanation letter detailing why I hadn't filed previously - Completed tax returns for the lookback period (3 years) - Profit and loss statements for my business - Calculation worksheet showing how I determined the tax, interest, and penalties I didn't send a check with my initial application - that came later after we agreed on the final amount. The state actually adjusted my calculations slightly before accepting my offer.

Just wanted to add that the state actually matters A LOT for voluntary disclosure programs. California's is totally different from like Texas or Florida. What state are you dealing with? That would help us give more specific advice.