A Voluntary Disclosure Agreement is a written agreement between the Department and a potential taxpayer. This agreement:
- allows the taxpayer to resolve any prior tax liability and register to pay tax for future periods.
- offers a limited look back period. A look back period is the number of years the Department will go back when assessing the tax liability.
- abates or reduces the penalty applied.
Agreements are offered for any tax the Department administers. To qualify for an agreement, the Department must not have contacted the taxpayer concerning a previous tax liability. Contact could include an inquiry letter or a phone call from an auditor to set up an appointment. Additionally, the taxpayer must not be registered for the tax type that is the subject of the agreement. Reasons for failing to register could include a misunderstanding of the law or the misconception that an out-of-state company with a presence in Tennessee is not required to register with the Department to pay taxes.
To enter the voluntary disclosure program, please email a request to email@example.com or you may send via mail to:
Tennessee Department of Revenue
P.O. Box 190644
Nashville, TN 37219
The request should state:
- What activities the company has in Tennessee;
- If the company is registered for any taxes (as they may be registered for sales and use but not franchise and excise) ;
- Company’s fiscal year end or calendar year’
- Any contact from the department;
- If sales tax was previously collected.
Once the request is received, the department will draft an agreement and send it to the taxpayer or third party for approval. The signed agreement will usually be issued within 20 days from receipt of the original letter.
Tennessee is a member of the Multistate Tax Commission's National Nexus Program. If you wish to enter into agreements with more than one state, or want to learn more, click here.
For further questions, contact the Discovery Unit at (615) 741-8319.