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 on a case-by-case basis. 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 for the period 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 voluntary.disclosure@tn.gov or you may send via mail to:
Tennessee Department of Revenue
Discovery Unit
P.O. Box 190644
Nashville, TN 37219
The request should include:
- What activities the company has in Tennessee;
- a statement of any taxes registered with the Department;
- Company’s fiscal year end or calendar year;
- Any contact from the Department;
- For Sales and Use tax:
- Indicate whether sales tax was previously collected;
- Indicate if the company is requesting the agreement to remit sales and use tax on tangible personal property used or consumed in Tennessee.
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 more information, please contact the Audit Division’s Discovery Unit by phone at (615) 532-6409 or by email at voluntary.disclosure@tn.gov.
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