Several states are willing to offer payment plans for back taxes to businesses that enter into voluntary disclosure agreements during the novel coronavirus pandemic, tax administrators said during a Multistate Tax Commission committee meeting Tuesday.
Some state tax agencies have offered payment plans in conjunction with their voluntary disclosure agreements, or VDAs, from before the pandemic, and others will consider providing flexible payment arrangements, according to a survey of state taxing authorities discussed during a meeting of the MTC’s nexus committee.
VDAs allow companies to come forward and settle unpaid tax liabilities to states without incurring penalties, and often shield a company’s identity until the agreement is approved.
Business community representatives indicated during the meeting that a more flexible payment arrangement could benefit both large and small companies that may not have the cash flow to pay their tax liabilities over a couple of months.
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By: Paul Williams
April 21, 2020