SALT Report 2088 – The Alabama Department of Revenue issued a notice regarding Voluntary Disclosure Agreement fees. Alabama Code Section 40-18-80.1 requires that a fee be imposed on all estimated tax underpayments. However, because the fee is technically an interest charge and not a penalty, all requests for Voluntary Disclosure dated after July 15, 2008, will be ineligible to receive a waiver of the interest on an underpayment.
The VDA program is available to corporate income tax, sales and use tax, and withholding taxpayers who are not in compliance with Alabama tax laws and who wish to come forward to register and bring their accounts into compliance. Business taxpayers who wish to enter into a Voluntary Disclosure Agreement are urged to review the state’s VDA Guidelines.
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