The Voluntary Disclosure Program is available to individuals who have determined they have nexus with Arizona and want to come into compliance with use tax, individual income tax and withholding tax laws. In most instances, this process is initiated when a taxpayer or taxpayer’s representative submits a Voluntary Disclosure Application to [email protected] anonymously.
Benefits of the Voluntary Disclosure Program
Benefits of the Voluntary Disclosure Program include the following:
- Reduced filing periods or “look-back period” (The standard look-back period is four years; however, this is determined on a case-by-case basis).
- Abatement of late filing and late payment penalties for the established look-back period.
- Compliance with state and cities/towns sales tax laws and regulations.
- Assistance from the Arizona Department of Revenue (ADOR) auditors as liaisons.
Taxpayers interested in participating in the program are encouraged to gather all required documents and information needed to apply. Individual taxpayers who have nexus for individual income tax, and have engaged the services of a taxpayer representative, must provide a completed Power of Attorney Form 285, authorizing the representative to work with ADOR on their behalf.
After the Voluntary Disclosure Application is processed, the worksheet will be furnished to the taxpayer or taxpayer representative for completion. Completed schedules must be returned to ADOR within 30 days of receipt. For this reason, it is advisable to complete this data before submitting the application.
After the Voluntary Disclosure application gets processed, the taxpayer must file and remit payment for all filing periods included in the established look-back period. For this reason, it is advisable for the taxpayer to compile this data before submitting the application.
Taxpayers with questions can contact the Compliance Programs Unit by email at [email protected], or by phone at (602) 716-7070.