Voluntary Disclosure Agreement Blog Posts

Pass-through entities, including partnerships, S corporations, and LLCs taxed as either, are often thought of as simple from a state tax perspective: the entity itself generally does not pay federal income tax, and the income "passes through" to be taxed at the owner level. In practice, that simplicity is deceptive. Because states each have their own rules for taxing pass-through income, and their own requirements for withholding on behalf of nonresident owners, pass-through

Worker classification is one of the more persistent risk areas in employment tax compliance. Businesses routinely make good-faith calls about whether a worker is an independent contractor or an employee, and those calls do not always hold up under scrutiny. When a company concludes, on its own, that it has been treating workers as independent contractors who should have been classified as employees, the IRS offers a specific mechanism to fix that going forward with meaningful

Most conversations about Voluntary Disclosure Agreements center on sales and use tax. But sales tax is not the only tax where nexus can quietly develop, and it is not the only tax where a VDA can be the right tool to fix historic noncompliance. A growing number of states and cities impose a gross receipts tax, business and occupation tax, or business license tax, and these taxes often have their own nexus standards, their own registration requirements, and their own VDA progr