if I Discover I’m out of Compliance for a Multi-State sales and Use Tax or Multi State Income Tax Issue? Should I pursue a voluntary compliance program? The answer to this question is maybe and what drove me crazy your back when wayfarer was a huge issue and when companies were scrambling to try and deal with this his everybody was talking about let’s enter into a voluntary disclosure program as quickly as possible the reality of those programs is they were great deal from the states because they were raising revenue and collecting all sorts of taxes but they were bad news for most businesses just because you do business in multiple states doesn’t mean you have all this free cash flow to support paying a whole bunch of back tax liability but a bunch of people panicked a bunch of people registered for these voluntary compliance programs in these states in order to avoid penalties and maybe get a potato production of the interest rate but to what effect so the more practical and concern is is rather than whether.
Key Takeaways
- if I Discover I’m out of Compliance for a Multi-State sales and Use Tax or Multi State Income Tax Issue?
- Should I pursue a voluntary compliance program?
I enter into a voluntary compliance program is what is my exposure and what’s the appropriate way to deal with it and the appropriate way to deal with it isn’t necessarily doing what the state tells you to do the responsible thing to do and as a corporate officer or an owner you have a responsibility to your organization the responsible thing to do is to measure twice and cut once really take a time to understand what your exposure is from a legal perspective understand how the states operate in terms of their revenue enforcement what’s the likelihood you’re gonna get caught. What’s the exposure if you get caught you may have a small amount of Nexus in find you rather than filing a state like a thousand dollars if they catch you maybe it’s best to let them come find you rather than filing a state income tax return and the state sales tax return in the state of Wyoming so there’s a variety of ways to approach this problem but the issue is as people 02:20 were rushing into solutions without seeking proper guidance and so from a multi-state perspective this area was very complicated it involves multiple jurisdictions and you really need somebody who can navigate through you through the landscape of these issues so that you avoid liability and that’s so you don’t enter yourself into a situation that you can’t dig yourself out from Up next.
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