Voluntary tax disclosure program

The North Carolina Department of Revenue is making it easier for individuals and businesses to resolve payroll tax as well as other tax obligations with the state. The agency is making changes to the Voluntary Disclosure Program (VDP) that will allow more taxpayers to participate.

VDP was established more than 10 years ago to promote compliance among small business and individual taxpayers who discover—on their own—they have not filed necessary tax returns and paid taxes due. In exchange for taxpayers voluntarily coming forward, NCDOR waives penalties in certain circumstances and allows taxpayers an expedited process for filing certain tax types.

Previously a taxpayer who had ever been registered or had filed a return for a particular tax (ex: payroll tax, sales tax) would not be eligible for VDP for that tax type. Now, taxpayers who may have previously registered and submitted returns may qualify to participate.

Beginning Nov.1, taxpayers will only be required to file past due returns and pay taxes due for a back period of three years for taxes filed annually, or 36 months for those that do not have an annual filing frequency (ex: sales tax)—unless they collected but failed to remit the tax. Prior to the VDP changes, taxpayers were required to file and pay at least four years or 48 months of returns.

For detailed information about eligibility and participation visit www.dornc.com/practitioner/voluntary.html, call NCDOR Discovery & Special Projects at 1-877-919-1819 ext. 10215 or email Cale.Johnson@dornc.com.