Skip to main content
News

Unpaid New York State Taxes Eligible for Voluntary Disclosure and Compliance Program

By February 24, 2012No Comments

New York State has established the Voluntary Disclosure and Compliance (VDC) program which is designed to encourage eligible taxpayers who owe back taxes to voluntarily disclose and pay tax liabilities that are not currently known to the NYS Tax Department. The significant incentives provided by the VDC program to taxpayers who participate in the program and comply with its requirements include protection from possible criminal tax prosecution and the avoidance of civil penalties.

Taxpayers who participate in the VDC program will be required to sign a compliance agreement in which they will promise to correct their past behavior, comply with the Tax Law in the future, and pay their past due tax obligations.

Eligible taxpayers can participate even if their tax liability is the result of fraudulent or criminal conduct.

An eligible taxpayer is an individual or entity subject to an eligible tax who meets all of the following criteria:

• The taxpayer is not currently under audit by the Tax Department for any tax.

• The taxpayer is voluntarily disclosing a New York tax liability that the Tax Department has not determined, calculated, researched or identified at the time of the disclosure.

• The taxpayer is not currently a party to any criminal investigation being conducted by any agency or political subdivision of New York State.

• The taxpayer is not seeking to disclose participation in a tax avoidance transaction that is a federal or New York State reportable or listed transaction. These transactions are commonly referred to as tax shelters.

Eligible tax is any tax type, currently or previously imposed, under the Tax Law including income, corporate, and sales tax.

To participate in the VDC program, the taxpayer must enter into a compliance agreement with the Tax Department. The compliance agreement will include those terms the department may reasonably require to satisfy the taxpayer’s disclosed tax obligations and to comply with the Tax Law in the future. Generally, the agreement will set a specific future period during which the taxpayer will be required to comply with the terms of the agreement.

The compliance agreement will provide that if the taxpayer complies with the terms of the agreement, the taxpayer will not be subject to any criminal tax prosecution in New York State for the conduct disclosed.

As part of the compliance agreement, the Tax Department may agree to limit the scope of its review to a specific period of time (the “limited look-back clause”). An eligible taxpayer who owes more than three years of taxes may in certain circumstances only be required to pay the taxes owed for a limited look-back period. Taxpayers seeking a compliance agreement with a limited look-back clause must request it during the application process and must nonetheless make a full and complete statement describing their entire tax liability. The limited look-back clause will provide that the department will limit its review to the look-back period and will not look back prior to that period to audit or assess the taxpayer for anything related to the tax matter being disclosed. In addition, taxpayers will not be required to file returns for the years prior to the look-back period.

Once a compliance agreement is executed, the Tax Department will waive any applicable penalties for the following: (1) failure to pay the disclosed tax liability; (2) failure to file a return or report with respect to the disclosed tax liability; and (3) failure to pay estimated tax. In addition, the department will not assess any other civil penalties related to the tax liability disclosed.

The taxpayer must pay any tax and interest for the periods included in the compliance agreement when it is executed or within the time stated on a bill issued to the taxpayer by the Tax Department. If the department is satisfied that the taxpayer cannot make immediate full payment of the disclosed tax liability, the department may enter into an installment payment agreement with the taxpayer. The taxpayer may be required to provide information concerning the taxpayer’s financial condition and resources before entering into an installment payment agreement.

The compliance agreement will not preclude the Tax Department from auditing any returns filed to determine if the returns are accurate and were completed in accordance with pertinent law and regulations. The department retains the right to examine and audit the information and returns provided by the taxpayer as part of the VDC program process, and it may require the taxpayer to provide additional information concerning the disclosed tax liability.

A taxpayer can cause the compliance agreement to be rescinded and, therefore, lose the benefits of the VDC program, in three ways:

• If the taxpayer intentionally provides false material information or omits material information in his or her application to participate in the program.

• If the taxpayer attempts to intentionally defeat or evade a tax subject to the agreement, the compliance agreement will be deemed rescinded.

• If the taxpayer intentionally fails to comply with any of the terms of the compliance agreement.

If a compliance agreement is deemed rescinded, the Tax Department will be free to use the taxpayer’s disclosures against the taxpayer and to pursue any civil or criminal penalty that might apply to the misconduct disclosed by the taxpayer as part of the VDC program process.

Contact Us 

You deserve the best in IRS tax representation, tax preparation, and tax planning services. At East Coast Tax Consulting Group, you’ll work with a licensed CPA who will handle your case from beginning to end. We invite you to contact our team to schedule a free, confidential consultation.

[gravityforms id="5" title="false" description="false" ajax="true" tabindex="199"]
<script type="text/javascript">var gform;gform||(document.addEventListener("gform_main_scripts_loaded",function(){gform.scriptsLoaded=!0}),window.addEventListener("DOMContentLoaded",function(){gform.domLoaded=!0}),gform={domLoaded:!1,scriptsLoaded:!1,initializeOnLoaded:function(o){gform.domLoaded&&gform.scriptsLoaded?o():!gform.domLoaded&&gform.scriptsLoaded?window.addEventListener("DOMContentLoaded",o):document.addEventListener("gform_main_scripts_loaded",o)},hooks:{action:{},filter:{}},addAction:function(o,n,r,t){gform.addHook("action",o,n,r,t)},addFilter:function(o,n,r,t){gform.addHook("filter",o,n,r,t)},doAction:function(o){gform.doHook("action",o,arguments)},applyFilters:function(o){return gform.doHook("filter",o,arguments)},removeAction:function(o,n){gform.removeHook("action",o,n)},removeFilter:function(o,n,r){gform.removeHook("filter",o,n,r)},addHook:function(o,n,r,t,i){null==gform.hooks[o][n]&&(gform.hooks[o][n]=[]);var e=gform.hooks[o][n];null==i&&(i=n+"_"+e.length),gform.hooks[o][n].push({tag:i,callable:r,priority:t=null==t?10:t})},doHook:function(n,o,r){var t;if(r=Array.prototype.slice.call(r,1),null!=gform.hooks[n][o]&&((o=gform.hooks[n][o]).sort(function(o,n){return o.priority-n.priority}),o.forEach(function(o){"function"!=typeof(t=o.callable)&&(t=window[t]),"action"==n?t.apply(null,r):r[0]=t.apply(null,r)})),"filter"==n)return r[0]},removeHook:function(o,n,t,i){var r;null!=gform.hooks[o][n]&&(r=(r=gform.hooks[o][n]).filter(function(o,n,r){return!!(null!=i&&i!=o.tag||null!=t&&t!=o.priority)}),gform.hooks[o][n]=r)}});</script> <div class='gf_browser_unknown gform_wrapper gform_wrapper_original_id_5 gravity-theme whitepaper-cta-popup_wrapper' id='gform_wrapper_198471225' ><div id='gf_198471225' class='gform_anchor' tabindex='-1'></div><form method='post' enctype='multipart/form-data' target='gform_ajax_frame_198471225' id='gform_198471225' class='whitepaper-cta-popup' action='/unpaid-new-york-state-taxes-eligible-for-voluntary-disclosure-and-compliance-program/#gf_198471225' novalidate> <div class='gform_body gform-body'><div id='gform_fields_198471225' class='gform_fields top_label form_sublabel_below description_below'><div id="field_5_2" class="gfield gfield_contains_required field_sublabel_below field_description_below hidden_label gfield_visibility_visible" data-js-reload="field_5_2"><label class='gfield_label' for='input_198471225_2' >First Name<span class="gfield_required"><span class="gfield_required gfield_required_asterisk">*</span></span></label><div class='ginput_container ginput_container_text'><input name='input_2' id='input_198471225_2' type='text' value='' class='large' tabindex='199' placeholder='First Name' aria-required="true" aria-invalid="false" /> </div></div><div id="field_5_3" class="gfield gfield_contains_required field_sublabel_below field_description_below hidden_label gfield_visibility_visible" data-js-reload="field_5_3"><label class='gfield_label' for='input_198471225_3' >Last Name<span class="gfield_required"><span class="gfield_required gfield_required_asterisk">*</span></span></label><div class='ginput_container ginput_container_text'><input name='input_3' id='input_198471225_3' type='text' value='' class='large' tabindex='200' placeholder='Last Name' aria-required="true" aria-invalid="false" /> </div></div><div id="field_5_1" class="gfield gfield_contains_required field_sublabel_below field_description_below hidden_label gfield_visibility_visible" data-js-reload="field_5_1"><label class='gfield_label' for='input_198471225_1' >Email Address<span class="gfield_required"><span class="gfield_required gfield_required_asterisk">*</span></span></label><div class='ginput_container ginput_container_email'> <input name='input_1' id='input_198471225_1' type='email' value='' class='large' tabindex='201' placeholder='Email Address' aria-required="true" aria-invalid="false" /> </div></div><div id="field_5_4" class="gfield gform_validation_container field_sublabel_below field_description_below gfield_visibility_visible" data-js-reload="field_5_4"><label class='gfield_label' for='input_198471225_4' >Email</label><div class='ginput_container'><input name='input_4' id='input_198471225_4' type='text' value='' autocomplete='new-password'/></div><div class='gfield_description' id='gfield_description_5_4'>This field is for validation purposes and should be left unchanged.</div></div></div></div> <div class='gform_footer top_label'> <button type='submit' onclick='if(window["gf_submitting_198471225"]){return false;} if( !jQuery("#gform_198471225")[0].checkValidity || jQuery("#gform_198471225")[0].checkValidity()){window["gf_submitting_198471225"]=true;} ' onkeypress='if( event.keyCode == 13 ){ if(window["gf_submitting_198471225"]){return false;} if( !jQuery("#gform_198471225")[0].checkValidity || jQuery("#gform_198471225")[0].checkValidity()){window["gf_submitting_198471225"]=true;} jQuery("#gform_198471225").trigger("submit",[true]); }' id='gform_submit_button_198471225' class='gform_button button om-trigger-conversion'>Submit</button> <input type='hidden' name='gform_ajax' value='form_id=5&amp;title=&amp;description=&amp;tabindex=199' /> <input type='hidden' class='gform_hidden' name='is_submit_5' value='1' /> <input type='hidden' class='gform_hidden' name='gform_submit' value='5' /> <input type='hidden' class='gform_hidden' name='gform_unique_id' value='' /> <input type='hidden' class='gform_hidden' name='state_5' value='WyJbXSIsIjE3OGJjZmUyNjg3ZTQyOGFjZTRkZjMzZjBiOTAzYTRlIl0=' /> <input type='hidden' class='gform_hidden' name='gform_target_page_number_5' id='gform_target_page_number_5' value='0' /> <input type='hidden' class='gform_hidden' name='gform_source_page_number_5' id='gform_source_page_number_5' value='1' /> <input type='hidden' name='gform_random_id' value='198471225' /><input type='hidden' name='gform_field_values' value='' /> </div> </form> </div> <iframe style='display:none;width:0px;height:0px;' src='about:blank' name='gform_ajax_frame_198471225' id='gform_ajax_frame_198471225' title='This iframe contains the logic required to handle Ajax powered Gravity Forms.'></iframe> <script type="text/javascript"> gform.initializeOnLoaded( function() {gformInitSpinner( 198471225, 'https://www.eastcoasttaxconsulting.com/wp-content/plugins/gravityforms/images/spinner.svg' );jQuery('#gform_ajax_frame_198471225').on('load',function(){var contents = jQuery(this).contents().find('*').html();var is_postback = contents.indexOf('GF_AJAX_POSTBACK') >= 0;if(!is_postback){return;}var form_content = jQuery(this).contents().find('#gform_wrapper_198471225');var is_confirmation = jQuery(this).contents().find('#gform_confirmation_wrapper_198471225').length > 0;var is_redirect = contents.indexOf('gformRedirect(){') >= 0;var is_form = form_content.length > 0 && ! is_redirect && ! is_confirmation;var mt = parseInt(jQuery('html').css('margin-top'), 10) + parseInt(jQuery('body').css('margin-top'), 10) + 100;if(is_form){jQuery('#gform_wrapper_198471225').html(form_content.html());if(form_content.hasClass('gform_validation_error')){jQuery('#gform_wrapper_198471225').addClass('gform_validation_error');} else {jQuery('#gform_wrapper_198471225').removeClass('gform_validation_error');}setTimeout( function() { /* delay the scroll by 50 milliseconds to fix a bug in chrome */ jQuery(document).scrollTop(jQuery('#gform_wrapper_198471225').offset().top - mt); }, 50 );if(window['gformInitDatepicker']) {gformInitDatepicker();}if(window['gformInitPriceFields']) {gformInitPriceFields();}var current_page = jQuery('#gform_source_page_number_5').val();gformInitSpinner( 198471225, 'https://www.eastcoasttaxconsulting.com/wp-content/plugins/gravityforms/images/spinner.svg' );jQuery(document).trigger('gform_page_loaded', [198471225, current_page]);window['gf_submitting_198471225'] = false;}else if(!is_redirect){var confirmation_content = jQuery(this).contents().find('.GF_AJAX_POSTBACK').html();if(!confirmation_content){confirmation_content = contents;}setTimeout(function(){jQuery('#gform_wrapper_198471225').replaceWith(confirmation_content);jQuery(document).scrollTop(jQuery('#gf_198471225').offset().top - mt);jQuery(document).trigger('gform_confirmation_loaded', [198471225]);window['gf_submitting_198471225'] = false;wp.a11y.speak(jQuery('#gform_confirmation_message_198471225').text());}, 50);}else{jQuery('#gform_198471225').append(contents);if(window['gformRedirect']) {gformRedirect();}}jQuery(document).trigger('gform_post_render', [198471225, current_page]);} );} ); </script>
[gravityforms id="5" title="false" description="false" ajax="true" tabindex="199"]
<div class='gf_browser_unknown gform_wrapper gform_wrapper_original_id_5 gravity-theme whitepaper-cta-popup_wrapper' id='gform_wrapper_1523836133' ><div id='gf_1523836133' class='gform_anchor' tabindex='-1'></div><form method='post' enctype='multipart/form-data' target='gform_ajax_frame_1523836133' id='gform_1523836133' class='whitepaper-cta-popup' action='/unpaid-new-york-state-taxes-eligible-for-voluntary-disclosure-and-compliance-program/#gf_1523836133' novalidate> <div class='gform_body gform-body'><div id='gform_fields_1523836133' class='gform_fields top_label form_sublabel_below description_below'><div id="field_5_2" class="gfield gfield_contains_required field_sublabel_below field_description_below hidden_label gfield_visibility_visible" data-js-reload="field_5_2"><label class='gfield_label' for='input_1523836133_2' >First Name<span class="gfield_required"><span class="gfield_required gfield_required_asterisk">*</span></span></label><div class='ginput_container ginput_container_text'><input name='input_2' id='input_1523836133_2' type='text' value='' class='large' tabindex='199' placeholder='First Name' aria-required="true" aria-invalid="false" /> </div></div><div id="field_5_3" class="gfield gfield_contains_required field_sublabel_below field_description_below hidden_label gfield_visibility_visible" data-js-reload="field_5_3"><label class='gfield_label' for='input_1523836133_3' >Last Name<span class="gfield_required"><span class="gfield_required gfield_required_asterisk">*</span></span></label><div class='ginput_container ginput_container_text'><input name='input_3' id='input_1523836133_3' type='text' value='' class='large' tabindex='200' placeholder='Last Name' aria-required="true" aria-invalid="false" /> </div></div><div id="field_5_1" class="gfield gfield_contains_required field_sublabel_below field_description_below hidden_label gfield_visibility_visible" data-js-reload="field_5_1"><label class='gfield_label' for='input_1523836133_1' >Email Address<span class="gfield_required"><span class="gfield_required gfield_required_asterisk">*</span></span></label><div class='ginput_container ginput_container_email'> <input name='input_1' id='input_1523836133_1' type='email' value='' class='large' tabindex='201' placeholder='Email Address' aria-required="true" aria-invalid="false" /> </div></div><div id="field_5_4" class="gfield gform_validation_container field_sublabel_below field_description_below gfield_visibility_visible" data-js-reload="field_5_4"><label class='gfield_label' for='input_1523836133_4' >Name</label><div class='ginput_container'><input name='input_4' id='input_1523836133_4' type='text' value='' autocomplete='new-password'/></div><div class='gfield_description' id='gfield_description_5_4'>This field is for validation purposes and should be left unchanged.</div></div></div></div> <div class='gform_footer top_label'> <button type='submit' onclick='if(window["gf_submitting_1523836133"]){return false;} if( !jQuery("#gform_1523836133")[0].checkValidity || jQuery("#gform_1523836133")[0].checkValidity()){window["gf_submitting_1523836133"]=true;} ' onkeypress='if( event.keyCode == 13 ){ if(window["gf_submitting_1523836133"]){return false;} if( !jQuery("#gform_1523836133")[0].checkValidity || jQuery("#gform_1523836133")[0].checkValidity()){window["gf_submitting_1523836133"]=true;} jQuery("#gform_1523836133").trigger("submit",[true]); }' id='gform_submit_button_1523836133' class='gform_button button om-trigger-conversion'>Submit</button> <input type='hidden' name='gform_ajax' value='form_id=5&amp;title=&amp;description=&amp;tabindex=199' /> <input type='hidden' class='gform_hidden' name='is_submit_5' value='1' /> <input type='hidden' class='gform_hidden' name='gform_submit' value='5' /> <input type='hidden' class='gform_hidden' name='gform_unique_id' value='' /> <input type='hidden' class='gform_hidden' name='state_5' value='WyJbXSIsIjE3OGJjZmUyNjg3ZTQyOGFjZTRkZjMzZjBiOTAzYTRlIl0=' /> <input type='hidden' class='gform_hidden' name='gform_target_page_number_5' id='gform_target_page_number_5' value='0' /> <input type='hidden' class='gform_hidden' name='gform_source_page_number_5' id='gform_source_page_number_5' value='1' /> <input type='hidden' name='gform_random_id' value='1523836133' /><input type='hidden' name='gform_field_values' value='' /> </div> </form> </div> <iframe style='display:none;width:0px;height:0px;' src='about:blank' name='gform_ajax_frame_1523836133' id='gform_ajax_frame_1523836133' title='This iframe contains the logic required to handle Ajax powered Gravity Forms.'></iframe> <script type="text/javascript"> gform.initializeOnLoaded( function() {gformInitSpinner( 1523836133, 'https://www.eastcoasttaxconsulting.com/wp-content/plugins/gravityforms/images/spinner.svg' );jQuery('#gform_ajax_frame_1523836133').on('load',function(){var contents = jQuery(this).contents().find('*').html();var is_postback = contents.indexOf('GF_AJAX_POSTBACK') >= 0;if(!is_postback){return;}var form_content = jQuery(this).contents().find('#gform_wrapper_1523836133');var is_confirmation = jQuery(this).contents().find('#gform_confirmation_wrapper_1523836133').length > 0;var is_redirect = contents.indexOf('gformRedirect(){') >= 0;var is_form = form_content.length > 0 && ! is_redirect && ! is_confirmation;var mt = parseInt(jQuery('html').css('margin-top'), 10) + parseInt(jQuery('body').css('margin-top'), 10) + 100;if(is_form){jQuery('#gform_wrapper_1523836133').html(form_content.html());if(form_content.hasClass('gform_validation_error')){jQuery('#gform_wrapper_1523836133').addClass('gform_validation_error');} else {jQuery('#gform_wrapper_1523836133').removeClass('gform_validation_error');}setTimeout( function() { /* delay the scroll by 50 milliseconds to fix a bug in chrome */ jQuery(document).scrollTop(jQuery('#gform_wrapper_1523836133').offset().top - mt); }, 50 );if(window['gformInitDatepicker']) {gformInitDatepicker();}if(window['gformInitPriceFields']) {gformInitPriceFields();}var current_page = jQuery('#gform_source_page_number_5').val();gformInitSpinner( 1523836133, 'https://www.eastcoasttaxconsulting.com/wp-content/plugins/gravityforms/images/spinner.svg' );jQuery(document).trigger('gform_page_loaded', [1523836133, current_page]);window['gf_submitting_1523836133'] = false;}else if(!is_redirect){var confirmation_content = jQuery(this).contents().find('.GF_AJAX_POSTBACK').html();if(!confirmation_content){confirmation_content = contents;}setTimeout(function(){jQuery('#gform_wrapper_1523836133').replaceWith(confirmation_content);jQuery(document).scrollTop(jQuery('#gf_1523836133').offset().top - mt);jQuery(document).trigger('gform_confirmation_loaded', [1523836133]);window['gf_submitting_1523836133'] = false;wp.a11y.speak(jQuery('#gform_confirmation_message_1523836133').text());}, 50);}else{jQuery('#gform_1523836133').append(contents);if(window['gformRedirect']) {gformRedirect();}}jQuery(document).trigger('gform_post_render', [1523836133, current_page]);} );} ); </script>