Customer Notice: To schedule an appointment, please contact us at [email protected].
The Voluntary Disclosure Program serves taxpayers who wish to voluntarily report previously undisclosed liabilities for any tax administered by the department. Taxpayers may work directly with department auditors, or indirectly by way of a duly appointed representative. The program auditors facilitate the licensing, registration, payment process and provide education to ensure ongoing compliance with state and municipal tax laws.
Benefits of the Voluntary Disclosure Program include the following:
Conditions and limitations of the Voluntary Disclosure Program include the following:
Taxpayers with undisclosed liabilities in multiple states may consider applying for a multistate voluntary disclosure through the Multistate Tax Commission (MTC). The MTC facilitates disclosure of tax liabilities for multiple states by working directly with each state’s Voluntary Disclosure Program.
Voluntary Disclosure Program participants requesting an agreement to remit unreported transaction privilege tax (TPT) are required to obtain a TPT license and submit a TPT Schedule in lieu of TPT returns. In the event the taxpayer has engaged the services of a duly appointed taxpayer representative, a valid Power of Attorney Form 285 will also be required. In order to avoid unnecessary delays that may result in additional interest or involuntary case closure, it is advisable to have these documents completed and available before submitting a Voluntary Disclosure Application. In order to expedite the licensing process and reduce the incidence of errors, taxpayers are encouraged to apply for a TPT license electronically at www.AZTaxes.gov.
Once the application is processed, the assigned case auditor will respond with an introductory phone call and a secure email containing detailed instructions and an unsigned agreement.
Taxpayers who agree to the terms of the agreement and wish to proceed must return the signed agreement to the auditor via email. If the taxpayer has not already furnished the completed TPT Schedule and Power of Attorney Form, 30 days will be afforded to complete and return these documents. Any issues that affect the licensing process should be reported to the assigned auditor, who will facilitate expedited resolution and processing.
After the returned forms and information have been processed, the assigned case auditor will send an audit summary and analysis report, a tax calculation detail, and a billing notice via secure email to either the taxpayer or the duly appointed taxpayer representative. The taxpayer will be able to review the information and communicate any concerns before the billing will become final.
Once the billing is finalized, the taxpayer will have 15 days from the notice date to remit payment via www.AZTaxes.gov for the tax liability and interest due for the agreement period. Once payment has been received by the department, the assigned case auditor will send the Executed Agreement to the taxpayer or duly appointed taxpayer representative via secure email.
Taxpayers with questions can contact the Compliance Programs Unit by email at [email protected], or by phone at (602) 716-7070.
Voluntary Disclosure Program participants who are requesting an agreement to remit unreported corporate income tax will be required to submit the appropriate income tax forms for each year that will fall within the agreement period. For this reason, taxpayers may not include the most recently closed tax year if an extension will be requested. If the taxpayer has engaged the services of a duly appointed taxpayer representative, a valid Power of Attorney Form 285 will also be required. In order to avoid unnecessary delays which may result in additional interest or involuntary case closure, it is advisable to have these documents completed and available before submitting a Voluntary Disclosure Application (VDA).
Once the application is processed, the assigned case auditor will respond with an introductory phone call and a secure email containing detailed instructions and an unsigned agreement.
Taxpayers who agree to the terms of the agreement and wish to proceed must return the signed agreement to the auditor via email. If the taxpayer has not already furnished the completed income tax returns and Power of Attorney form, 30 days will be afforded to complete and return these documents. Returns can be scanned and emailed to the assigned auditor, or sent to: 1600 W. Monroe St., Division Code 9, Phoenix, AZ 85007. Be sure to include the VDA case number on the returns and payments.
After the returns have been processed, the assigned case auditor will send a billing notice for the tax liability and interest for the period via secure email to either the taxpayer or the duly appointed taxpayer representative. The taxpayer will have 15 days from the notice date to remit payment via www.AZTaxes.gov. Once payment has been received by the department, the assigned case auditor will send the Executed Agreement to the taxpayer or duly appointed taxpayer representative via secure email.
Taxpayers with questions can contact the Compliance Programs Unit by email at [email protected], or by phone at (602) 716-7070.