We can negotiate with state and local tax agencies on your behalf to obtain the best terms possible. For example, if you have not been paying tax for the last 10 years, a tax agency might agree to forgive a number of years of back-taxes and also not impose penalties.
The New York State voluntary disclosure and compliance program was enacted in 2008. The voluntary disclosure application is submitted online. Applicants for the voluntary disclosure and compliance program cannot be under audit by the tax department; the tax department must not have determined, calculated, researched or identified the tax liability at the time of the disclosure; the applicant must not be a party to any criminal investigation being conducted by any agency or political subdivision of New York State; and the applicant cannot disclose participation in certain tax shelters. The voluntary disclosure can cover any type of tax administered by the tax department (for example, income taxes, sales taxes, etc.). The tax department will issue a voluntary disclosure and compliance agreement to applicants that qualify for the voluntary disclosure and compliance program. The approved applicant must sign the voluntary disclosure and compliance agreement and comply with its terms in order to receive the benefits of the voluntary disclosure and compliance agreement.
In New York State the benefits of the voluntary disclosure program include limiting the number of years of tax returns that must be filed and payment of tax and interest to the “look-back period”, the abatement of penalties and various degrees of protection against criminal prosecution. Applicants may request a “limited look-back period” if taxes are owed for more than 3 years. However, 6 years of tax returns and tax payments and interest will be required in the case of fraud or tax evasion. A statement included with the online application should explain why the applicant believes that they qualify for the voluntary disclosure and compliance program. The applicant should also include an explanation of why they qualify for a limited look-back period if one is requested.
The strongest protection against criminal prosecution is included in voluntary compliance agreements that do not include a limited look-back period. A voluntary disclosure and compliance agreement based on full disclosure includes the following benefits: No New York State prosecutor or district attorney can bring criminal tax prosecution against the applicant for taxes paid under the program; and the tax department cannot share any disclosure that the applicant makes with any other agency or use it against the applicant as evidence in any criminal action or proceeding brought against the applicant. However, the tax department is authorized to share your tax returns with the Internal Revenue Service or any other qualifying agency.
Voluntary disclosure and compliance agreements that include a limited look-back period include the full voluntary disclosure protections for the look-back period and additionally the following protections: the tax department will limit its review of the applicant’s taxes to the look-back period; the tax department will not look back beyond the look-back period for anything else for the tax issue that is disclosed; the tax department will not refer the applicant for criminal prosecution for conduct disclosed. However, voluntary disclosure and compliance agreements that include a limited look-back period will not include full voluntary disclosure protections. This type of voluntary disclosure and compliance agreement will not include protection from criminal prosecution brought by other agencies or prosecutors for the periods prior to the look-back period. Call us today at 212-232-2410 or contact us online to discuss your options.
Call us today at 212-232-2410 or contact us online to discuss your options.