humem laws

1. Most Voluntary Disclosure Programs
law link > https://oke.io/48eSmeB
The IRS Voluntary Disclosure Program is a federal government program that
provides taxpayers with opportunities to disclose income, assets, investments,
and accounts that they have previously failed to report on their tax returns.
Eligibility Requirements for Most Voluntary Disclosure Programs
The IRS Voluntary Disclosure Program is a federal government program that provides
taxpayers with opportunities to disclose income, assets, investments, and accounts that
they have previously failed to report on their tax returns. While a voluntary disclosure
agreement (VDA) doesn't automatically shield a taxpayer from prosecution, it's likely that
prosecution will not be recommended when this avenue is utilized. An even bigger benefit of
taking advantage of a VDA while the option is still available is that the IRS or state taxing
body will likely limit your look-back period for the tax liability. In order for voluntary
disclosure to be valid, a taxpayer must:
● Truthfully and completely disclose information in accordance with program
requirements.
● Cooperate to determine accurate tax liability.
● Cooperate with good-faith arrangements to pay taxes in full with any interest or
penalties applied.

2. Voluntary disclosure is open to a taxpayer who has willfully committed tax crimes. If a
potential tax crime was not willful, it's possible that ordinary means of correcting tax issues
that can include filing and amending past returns would be recommended. Lastly, voluntary
disclosure protection only applies to legal sources of income.
The Difference Between Voluntary
Disclosure and Mandatory Disclosure
law link > https://oke.io/48eSmeB
Voluntary disclosure offers an opportunity to "get ahead" of unpaid taxes. By contrast,
mandatory disclosure occurs when the IRS requests information when acting on a
taxpayer's suspected noncompliance. The voluntary disclosure must be done before the
IRS has initiated a civil or criminal investigation, received information from a third party
regarding noncompliance, notified a taxpayer of an investigation or examination, or acquired
information via a criminal enforcement action.
Multi-State VD
The program allows taxpayers to negotiate settlements for potential tax liability in multiple
states. For taxpayers with potential tax exposure in more than one state, this program
creates a way to settle outstanding tax debts faster, more efficiently, and for less money
through a coordinated agreement with the National Nexus Program and Multistate Tax
Commission. There is no charge to enter into this program.
Offshore VDA
The IRS closed its OVDP (Offshore Voluntary Disclosure Program) in 2018. Taxpayers
seeking to disclose information related to offshore foreign accounts must now make a pre-
clearance request directly to the IRS's Criminal Investigation Division (CID). A detailed
report providing all of the facts and circumstances related to the assets involved must be

3. submitted. Taxpayers should also know that they are required to report certain foreign
financial accounts annually by completing a Report of Foreign Bank and Financial Accounts
(FBAR) filing. Willfully failing to file an FBAR can result in an FBAR penalty totaling either
$100,000 or 50% of the account balance. Criminal prosecution is also possible.
Sales Tax VDA
A sales tax VDA is a contractual agreement between a company and the state taxing
authority that allows a company to come forward to voluntarily pay its unpaid tax obligations
concerning dealings in any state where it has a sales tax nexus. It applies to all sales tax
that was collected without being remitted. In exchange, the state will potentially reduce
penalties while also placing limitations on the look-back period for unpaid taxes. This is for
businesses that are not already under investigation.
What Is the Application Like for
Voluntary Disclosure?
law link > https://oke.io/48eSmeB
There are several different processes involved when applying for voluntary disclosure. In
the case of seeking disclosure benefits for federal taxes, the standard practice is for an
individual to initiate the voluntary disclosure by contacting their nearest IRS Criminal
Investigation (CI) office. Generally, individuals seeking to utilize voluntary disclosure will

4. have tax professionals make these requests on their behalf to ensure that they can protect
their rights.
When seeking to initiate voluntary disclosure at the state level, it's necessary to submit an
application through the state's designated tax portal. While submitting an application online
is the most common method, sending a letter to request a disclosure consideration is often
possible. A request for a disclosure application for state taxes typically requires the
following pieces of information:
● The type of tax involved.
● A description of the taxpayer's tax activities in the state.
● A start date for tax activities.
● The reason for the taxpayer's noncompliance with state tax laws.
● The total amount of tax liability.
Taxpayers can make requests for voluntary tax disclosure applications anonymously.
However, the option to maintain anonymity is removed after the discovery period. Once it
has been determined that you qualify for a voluntary disclosure agreement, you will be sent
an agreement that must be signed and returned. While deadlines for returning your
application can vary by state, taxpayers usually have 30 days to complete their applications
in order to avoid penalties from becoming active. Next, a taxpayer receives instructions for
registering for the VDA program. For businesses, this can include completing a business
license application, submitting information related to gross income, completing a business
activities questionnaire, and submitting a tax authorization form. The state tax department
may also request additional information related to income and business activities.
Finally, taxpayers must fulfill their tax obligations for unreported income that prompted the
VDA in order to stay in compliance. An invoice that requires full payment will be submitted
to the taxpayer with a deadline attached. Additional interest and penalties will begin
accruing if the tax bill is not paid in full.

5. What Can Be Done If You Owe
Undisclosed Taxes?
Individuals and taxpayers have what should be considered a very generous opportunity to
correct tax mistakes before serious consequences and penalties become realities.
Someone who owes any amount of unpaid taxes stemming from undisclosed income
sources should act quickly to investigate their eligibility for VDA before the IRS or state
taxing body catches wind of the impropriety. This is one of the rare tax relief options where
"forgiveness" is applied when a taxpayer willfully neglects tax duties. If you're seeking tax
audit representation, reach out to an expert tax attorney to explore your options for using a
VDA to avoid investigation, harsh penalties, and the potential for criminal charges.
One of the most common tax return mistakes is missing the tax deadline. “Tax season” is
usually defined as the months of February and April, because that’s when most taxpayers
file their taxes. The tax deadline every year usually falls in mid-April.
If the tax deadline is rapidly approaching and you still haven’t filed your taxes, you’re not out
of options—you can file for an extension. That’s a better option than doing nothing.
If you don’t file for an extension and don’t file your taxes in time, you’ll likely end up paying a
late fee when you file.
You can avoid this common mistake by putting “Tax Day” on your calendar and dedicating a
specific day to getting your taxes done. Even better, consider scheduling an appointment
with a tax professional to ensure that you file your taxes before the due date. Not only will
you feel more confident that you’ve met the IRS deadline, but you’ll also feel more assured
that you haven’t made any mistakes!
Choosing the Wrong Filing Status

6. Choosing your filing status (married, single, head of household, etc.) seems straightforward,
but it can get pretty confusing for taxpayers who aren’t familiar with all the terms, meanings,
and implications of these filing statuses.
You’ll need to choose a status to file, so filling out this important detail is often one of the
first things you’ll do. Depending on your circumstances, you’ll either be single, married filing
law link > https://oke.io/48eSmeB
jointly, married filing separately, a qualifying widower, or the head of household. If you’ve
never been married and don’t have dependents, then you’ll file as single. If you have
dependents but are not married, then you’ll file head of household.
Choosing the right filing status is crucial, so it’s advised that you reach out to a tax expert if
you’re not sure which category you fit into. Filing under the wrong status could leave you
liable for more taxes than you really owe, or it could result in action from the IRS, including
a potential audit.
Ignoring IRS Mail
One common symptom of forosophobia, the fear of filing taxes, is tax avoidance. Do you
tend to avoid anything and everything that has to do with filing your taxes? If so, you’re also
likely to ignore IRS mail, e-mails, or other correspondence.
That is a huge mistake.

7. If the IRS sends you mail, you need to read it to stay informed about what’s happening. An
IRS letter might not be all bad, by the way—it could be an indication that your tax return is
on its way, or it could be a notification about a change. Either way, you won’t know how to
respond or what action you need to take if you disregard the letter.
Seeing mail from the IRS can be shocking at first. It’s okay to pause and save the letter for
when you’re ready to open it, but don’t wait too long. If you’re struggling, have a loved one
open the letter and tell you what it’s about. Otherwise, bring it to a tax expert who can help
you further understand the scope of the issue.
law link > https://oke.io/48eSmeB