A Voluntary Disclosure Agreement is a written agreement between the Department and a potential taxpayer. This agreement:
- allows the taxpayer to resolve any prior tax liability and register to pay tax for future periods.
- offers a limited look back period. A look back period is the number of years the Department will go back when assessing the tax liability.
- abates or reduces the penalty applied.
Agreements are offered for any tax the Department administers. To qualify for an agreement, the Department must not have contacted the taxpayer concerning a previous tax liability. Contact could include an inquiry letter or a phone call from an auditor to set up an appointment. Additionally, the taxpayer must not be registered for the tax type that is the subject of the agreement. Reasons for failing to register could include a misunderstanding of the law or the misconception that an out-of-state company with a presence in Tennessee is not required to register with the Department to pay taxes.
If you are interested in entering into an agreement, you must submit a written letter to the Department. The letter may be emailed to firstname.lastname@example.org or sent to:
Audit Division - Discovery Unit
P.O. Box 190644
Nashville, TN 37219