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Rectifying State & Local Tax exposures through disclosure to the states
VDA Basics
Given the complex nature of state taxes, multi-state businesses are prone to making mistakes with the collection and remittance of sales tax, and income tax payment requirements. Often, these mistakes can lead to the underpayment or under-collection of these taxes for multiple years.
The purpose of a Voluntary Disclosure Agreement (VDA) is to come clean with the relevant state and voluntarily backpay taxes owed. Doing so will wipe the slate clean going forward and enable you to continue operating in the state without fear of not being compliant.
Typically, any taxpayer-individuals, businesses, or entities who voluntarily come forward and disclose any potential tax liabilities they may have in a specific jurisdiction.
VDA Benefits
Why Leyton
Years Serving Businesses
Countries
States Supported
Saved on Tax
Our Approach
Our Voluntary Disclosure Agreement (VDA) process is designed to help businesses resolve historical state tax liabilities with confidence.
We begin by understanding your business operations, including your physical locations, employees, inventory, sales channels, and revenue by state to identify potential nexus triggers.
Our SALT specialists determine the most appropriate approach, calculate potential liabilities, and prepare an anonymous disclosure to the applicable state tax authority.
We work directly with the state to negotiate the Voluntary Disclosure Agreement, helping limit the lookback period and reduce or eliminate applicable penalties where available.
Once the agreement is finalized, we assist with tax registrations, filing historical returns, remitting any taxes due, and establishing ongoing compliance to help your business remain in good standing.
Trusted State & Local Tax Advisor
Supporting clients through every step of their State and Local Tax foot print.
President
@Grass365
“I cannot state how much Brian Ess and Leyton helped my business. We had a very unique tax situation that was hard to gauge by multiple tax advisors. We knew we had an issue that had to be solved and the brevity of the situation was a very large number for our company to absorb. Brian and his team were able to guide us through and negotiate on our behalf with the state. Their navigation was so much better than we could have hoped for. We settled for something like pennies on the dollar. I would highly recommend Brian and Leyton to help anyone out with local state tax guidance. Thank you Brian I’d kiss you if l could!”
Co-founder
@Oh Clementine
“The Leyton team has demonstrated great attention to detail and competence in helping us with our state and local tax management. Brian and Grace have been easy to work with, proactive communicators, and very accessible. Highly recommend for any business trying to navigate sales tax compliance, VDAs, and more.”
Owner
@Lost Artistry Lash
“The Leyton team, and especially Brian, have been super helpful over the years with all our international sales tax needs. Would highly recommend.”
Get in Touch
Leyton’s State & Local Tax (SALT) experts collaborate with your accountants and automation solutions to ensure that your business has its SALT affairs in order, providing accurate insights that enable sustainable business growth.
FAQs
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Taxpayers should consider entering into a VDA when they become aware of unreported or underreported tax liabilities to mitigate penalties and potential legal consequences.
VDAs can generally address various types of taxes, including income tax, sales tax, use tax, payroll tax, and other state or local taxes.
Taxpayers are usually required to provide detailed information about the nature and extent of the unreported tax liabilities, along with supporting documentation.
After disclosure, the taxpayer works with the taxing authority to calculate and settle the outstanding tax liabilities based on the negotiated terms of the agreement.