Voluntary Disclosure Agreements (VDAs)

Clean Up Past Sales Tax Exposure – Quietly, Legally, and Strategically

One aspect of sales tax compliance is handling tax obligations from previous periods. Many states offer a type of program known as a Voluntary Disclosure Agreement, or VDA. AccurateTax helps businesses resolve unregistered sales tax liabilities through state-approved Voluntary Disclosure Agreements.

No penalties. No audits. No surprises. *

If your business has made sales into U.S. states without registering and collecting sales tax, you may be exposed to uncollected sales tax liabilities, penalties, and interest, and perhaps even an audit. A VDA offers a legal path to resolve that exposure on your own terms.

At AccurateTax, we guide businesses through the VDA process with discretion, precision, and long-term compliance in mind.

Pain Points

  • Worried about unregistered nexus in multiple states?
  • Concerned that past sales could trigger penalties or audits?
  • Unsure how to approach states without revealing your identity?
  • Feeling nervous about starting because you don’t understand the process?

What is a VDA?

A Voluntary Disclosure Agreement (VDA) is a formal agreement between your business and a state tax authority. It allows the taxpayer to proactively disclose past tax liabilities among sales, use, income, and excise taxes, in exchange for:

  • Penalty abatement
  • Limited lookback periods
  • Anonymity during initial outreach
  • Protection from future audits on disclosed periods

VDAs are especially common in sales and use tax, where businesses may unknowingly have uncollected or unremitted taxes due to expanding into new states or misunderstanding nexus rules.

The goal of a VDA is to put your company on sound compliance footing, resolving past liabilities while building trust with state authorities. It’s a proactive step that helps you avoid future pitfalls, clean up historical exposure, and move forward with confidence.

At AccurateTax, our goal as your partner is to minimize financial damage, preserve your reputation, and ensure your business is positioned for sustainable, audit-ready compliance. We don’t just negotiate; we help you build a foundation for long-term success.

When Should a Business Consider a VDA?

You may benefit from a VDA if:

  • You’ve crossed economic nexus thresholds without registration or collection
  • You’ve made marketplace or remote sales into multiple states
  • You’ve acquired a business with historical tax exposure
  • You’re preparing for due diligence, audit, or sale
  • Your company has not been contacted directly by the state in question about sales tax matters

Even if you’ve never collected sales tax, you may still owe it. Not collecting the tax does not eliminate the liability. If you had nexus, the obligation to remit and pay still exists.

Why Choose AccurateTax?

We’re not just a tax filing service. We’re your strategic partner in compliance and cleanup.

Here are just a few reasons why businesses choose AccurateTax to assist with their Voluntary Disclosure Agreement processing:

  1. Experienced compliance managers with years of hands-on VDA success
  2. State outreach handled discreetly and professionally, without triggering unnecessary scrutiny
  3. Clear, methodical nexus evaluation based on transaction history, business activity, and state thresholds
  4. Tried-and-true VDA process that resolves past liabilities and prepares you for future compliance

We understand what’s at stake. Our goal is to complete the process as quickly and efficiently as possible, minimizing disruption while protecting your business. With AccurateTax, you’ll gain clarity, control, and confidence, knowing your exposure is resolved and your compliance foundation secure.

What Our Clients Say

CFO, Dietary Supplements Distributor

AccurateTax has a very competent team. We’ve been working with them on a very large project to catch up on outstanding sales tax as well as manage our ongoing sales tax commitments. They are extremely knowledgeable, capable, and communicative. One of the best vendors that I’ve ever worked with.

Founder,
SaaS Platform

We were preparing for acquisition and needed to resolve our sales tax risk quickly. AccurateTax made the VDA process painless, and protected our valuation.

Controller, International Distributor

We didn’t know we had nexus in half these states. AccurateTax walked us through everything and helped us achieve compliance without penalties.

Client and employee names not shared for privacy reasons

How the Voluntary Disclosure Process Works

Working with a firm like AccurateTax, who is well-versed in the VDA process, will help you assess your exposure, determine which states are most urgent, and develop a rollout strategy that ensures compliance while minimizing disruption. Our goal is to help you move forward with clarity, confidence, and control, all while protecting your business from unnecessary penalties and reputational risk.

When considering a VDA, it’s important to begin with a determination of where the company currently stands in relation to its sales tax obligations. AccurateTax begins with a pre-assessment for our clients which includes filling out our VDA questionnaire and having a preliminary discussion about your company’s situation.

More Details: A Step-by-Step Overview

STEP 1: The VDA process begins with an internal review, where a company assesses its historical tax exposure across various jurisdictions. This step is critical for identifying where the business may have nexus and unpaid liabilities. AccurateTax will import your past orders into our system to get a detailed understanding of your exposure. From this review, we develop a strategic roadmap outlining the best course of action to address past sales tax liabilities.

STEP 2: Once exposure is mapped, AccurateTax compliance managers engage with relevant state representatives via anonymous outreach on your behalf. This intermediary contacts the state tax authority without disclosing your company’s identity, allowing for a preliminary discussion of terms without risk of immediate enforcement.

STEP 3: If the state is amenable, it will propose agreement terms, typically offering a limited lookback period – usually three to four years – and waiving penalties in exchange for voluntary compliance. This incentive structure encourages businesses to come forward and resolve past liabilities without facing the full weight of enforcement actions.

STEP 4: Upon acceptance, AccurateTax proceeds with registration and filing. This includes formally registering with the state, submitting the required back tax returns for the agreed lookback period, and remitting the taxes due plus any applicable interest.

STEP 5: Finally, your company enters ongoing compliance, beginning regular filings and maintaining good standing with the state going forward. This step ensures that the business remains compliant and avoids future exposure, completing the transition from risk to resolution.

* Note: Many states waive penalties and audit proceedings when a VDA has been properly performed. Final penalty and/or audit decisions belong to each individual state.

Schedule a Free VDA Risk Assessment Today

If our experience has taught us anything, it’s that it is always better to approach the state, rather than have them approach you. Don’t wait for a notice or audit. Be proactive and take control now, with a partner who knows the process inside and out.

Ready to Resolve Your Exposure?

Let’s build your path to clean compliance. Click here to contact us, or call us at 1-866-400-2444.