More Taxpayers Can Take Advantage of Penalty-free Solution
Date: November 1, 2011
The North Carolina Department of Revenue is making it easier for individuals and businesses to resolve tax obligations with the state. The agency is making changes to the Voluntary Disclosure Program (VDP) that will allow more taxpayers to participate.
"We want to help businesses quickly and easily resolve any problems so that they can continue to grow and create jobs," Gov. Perdue said. "This program also follows our initiative to ease rules and regulations in order to make state government more efficient and easier for individual taxpayers to work with."
VDP was established more than 10 years ago to promote compliance among taxpayers who discover—on their own—they have not filed necessary tax returns and paid taxes due. In exchange for taxpayers voluntarily coming forward, NCDOR waives penalties in certain circumstances and allows taxpayers an expedited process for filing certain tax types.
Previously a taxpayer who had ever been registered or had filed a return for a particular tax (ex: sales tax) would not be eligible for VDP for that tax type. Now, taxpayers who may have previously registered and submitted returns may qualify to participate.
Beginning Nov.1, taxpayers will only be required to file past due returns and pay taxes due for a back period of three years for taxes filed annually, or 36 months for those that do not have an annual filing frequency (ex: sales tax)—unless they collected but failed to remit the tax. Prior to the VDP changes, taxpayers were required to file and pay at least four years or 48 months of returns.
"Being easy to do business with is one of our agency-wide goals," said Secretary David Hoyle. "Far more people will be able to easily correct their tax situations because of the changes to this program."
Eligible taxpayers must meet a certain set of criteria, and complete a program application.
For detailed information about eligibility and participation visit www.dornc.com/practitioner/voluntary.html, call NCDOR Discovery & Special Projects at 1-877-919-1819 ext. 10215 or email Cale.Johnson@dornc.com.
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