Companies may discover that they had nexus in a given state and, thus, owe back taxes.- Most states allow voluntary disclosure agreements (VDAs). These agreements call for the company to submit delinquent tax returns and pay the required taxes.
- Typically, a VDA will limit the lookback period to three or four years. No penalties will be assessed if the company pays taxes in full for those years.
2011 Q3 | Voluntary Disclosure for State Taxes