Unsure where you owe sales or use tax
Run Your Nexus Risk CheckA California Voluntary Disclosure Agreement, often called a VDA, allows eligible businesses to come forward and resolve unreported sales tax liabilities while limiting penalties and audit risk.
A properly structured VDA may:
If your business has potential California nexus exposure, acting before receiving an audit notice is critical.
Run Your Nexus Risk CheckA VDA is a formal agreement between a business and the California Department of Tax and Fee Administration that allows voluntary registration and payment of back taxes under defined terms.
VDAs are typically available when:
Without a VDA, California may review multiple years of activity in an audit.
Under a voluntary disclosure agreement, the state may:
Limiting the lookback period can significantly reduce total liability.
Before registering or filing, confirm whether your business has created sales tax nexus in California or Texas.
Run Your Nexus Risk CheckA voluntary disclosure agreement may not be available if:
In these situations, other resolution strategies may be required.
Accurate nexus determination is critical before entering negotiations.
Once the state contacts your business, VDA eligibility may be lost. Businesses that act before receiving notices often have more flexibility and lower total exposure.
If your business may have unreported California sales tax, the first step is evaluating when nexus began and estimating liability.
Run Your Nexus Risk CheckIdentify potential eligibility before audit contact limits your options.