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
