Not every business qualifies for Texas voluntary disclosure. Understanding the eligibility requirements helps you determine whether the program is available to you and what steps to take.
You must have a filing obligation you haven’t met. Voluntary disclosure is for taxpayers who should have been filing Texas returns but weren’t. If you’ve been filing returns but underreporting tax, different programs and procedures apply.
The Comptroller must not have contacted you about the tax type in question. If you’ve received an audit notice, assessment, or other communication from the Comptroller regarding the tax you want to disclose, voluntary disclosure is generally unavailable. The program rewards taxpayers who come forward before being caught.
Contact about one tax type doesn’t necessarily disqualify you for others. If the Comptroller audited your sales tax compliance but you also have unfiled franchise tax returns, you may still qualify for voluntary disclosure on the franchise tax even though sales tax voluntary disclosure is unavailable.
You must be willing to comply going forward. Voluntary disclosure isn’t a one-time fix that allows you to return to non-compliance. As part of the agreement, you commit to registering for appropriate permits and filing all required returns in the future.
Certain tax types may have specific requirements. The general voluntary disclosure program covers most Texas taxes, but some taxes have unique rules. Confirm that voluntary disclosure applies to your specific situation.
Good faith participation is expected. Voluntary disclosure isn’t a negotiating tactic to extract better terms than you’d get in an audit. You need to provide accurate information about your activities and liabilities. Submitting misleading information can result in loss of voluntary disclosure benefits and potential penalties.
Timing affects eligibility. If you’re considering voluntary disclosure, act before circumstances change. An audit notice that arrives next week will disqualify you from benefits you could have claimed today.
Eligibility questions are best answered through consultation with someone who knows the program. Contact us to evaluate whether you qualify for Texas voluntary disclosure.
