10 min
Voluntary Disclosure Agreements 101 SALTovation: Making Sense of State and Local Tax
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- Careers
In this episode of the SALTovation podcast, we talk about voluntary disclosure agreements and why you would want to recommend them to a client. Alex Korzhen, Tram Le, and Meredith Smith discuss how a VDA can be an efficient self-audit that is cost-effective. They also discuss how to evaluate the pricing of the VDA process and consult with your clients, if it is determined a voluntary disclosure agreement is necessary.
Topics discussed in this episode:
The VDA process and determining the value of them for clients
How VDA’s are priced state to state
What You Will Learn:
[00:49] Defining a VDA
[05:54] How to advise clients
[09:40] Working on a state-by-state basis
Quotables:
“A VDA is a legal agreement that provides documentation that says I took my taxes seriously so I can provide this in due diligence in funding, in acquisition activity. So we do a lot of clean up and remediation as a result of due diligence.” - Meredith Smith [02:47]
“States are much easier to deal with under a VDA scenario than if they caught you if you received a nexus questionnaire or if you are being audited. It is not hostile but there is this undertone of “Gotcha!”. So you either approach on your terms or you are reviewed on their terms. ” - Alex Korzhen [04:06]
“The cost of a VDA, to negotiate that agreement as well as provide that self-audit to a state, pretty much pays for itself. I think that is a great reason for a client to do it.” - Tram Le [04:50]
“Determining if a VDA is worth it depends on the process at the state level or local jurisdictions. I think it really depends on what that process entails. Are we having to fill out a ton of forms or provide a narrative? The timing factor plays a big role as well. If we are dealing with bad data we can’t do the self-audit efficiently. ” - Tram Le [06:00]
In this episode of the SALTovation podcast, we talk about voluntary disclosure agreements and why you would want to recommend them to a client. Alex Korzhen, Tram Le, and Meredith Smith discuss how a VDA can be an efficient self-audit that is cost-effective. They also discuss how to evaluate the pricing of the VDA process and consult with your clients, if it is determined a voluntary disclosure agreement is necessary.
Topics discussed in this episode:
The VDA process and determining the value of them for clients
How VDA’s are priced state to state
What You Will Learn:
[00:49] Defining a VDA
[05:54] How to advise clients
[09:40] Working on a state-by-state basis
Quotables:
“A VDA is a legal agreement that provides documentation that says I took my taxes seriously so I can provide this in due diligence in funding, in acquisition activity. So we do a lot of clean up and remediation as a result of due diligence.” - Meredith Smith [02:47]
“States are much easier to deal with under a VDA scenario than if they caught you if you received a nexus questionnaire or if you are being audited. It is not hostile but there is this undertone of “Gotcha!”. So you either approach on your terms or you are reviewed on their terms. ” - Alex Korzhen [04:06]
“The cost of a VDA, to negotiate that agreement as well as provide that self-audit to a state, pretty much pays for itself. I think that is a great reason for a client to do it.” - Tram Le [04:50]
“Determining if a VDA is worth it depends on the process at the state level or local jurisdictions. I think it really depends on what that process entails. Are we having to fill out a ton of forms or provide a narrative? The timing factor plays a big role as well. If we are dealing with bad data we can’t do the self-audit efficiently. ” - Tram Le [06:00]
10 min