Voluntary Disclosure Agreement Services for US Sales Tax

A VDA lets you resolve a past tax problem with a state before they come to you, usually on much better terms. If you’ve just discovered a problem, take a breath – you’re in the right place and it’s almost certainly fixable.

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You’re Not The First To Find a Problem – and It’s Fixable

Maybe a backlog has been quietly building since you crossed a threshold years ago. Maybe an audit letter arrived. Maybe advice you trusted turned out to be wrong – we’ve seen bad guidance cost businesses $400,000 and more. That’s exactly why we don’t deal in fear: you’ll get an honest assessment of your situation and a clear path forward, not a worst-case story designed to rush you.

RJM is a specialist tax company and our VDA services exist for exactly this moment. We’ve worked with 5,000+ online businesses since 2019, including many who arrived exactly where you are now. You’ll deal directly with experienced consultants, sales tax experts who know your file and respond within 24 business hours.

From your first consultation, we keep everything confidential

What is a VDA?

A VDA is a formal way to settle past liabilities with a state before the state contacts you. You come forward voluntarily, usually without revealing who you are at first – and in return the state usually agrees to:

Limit the lookback period

The state caps how far back it looks, instead of pursuing every year of past non-compliance.

Waive penalties

In many cases, penalties on the disclosed periods are reduced or removed entirely.

Provide a clean path forward

You register, file for the agreed period, pay what’s due plus interest, and stay compliant from there.

Each state runs its own voluntary disclosure program, with its own rules, timelines and lookback periods, which is why the right answer is always specific to your situation.

Why Your Online Business Might Need a VDA for Sales Tax Compliance

The most common situations we see:

You’ve crossed economic nexus thresholds in one or more states – months or years ago – without realizing it.
Or you didn’t realise that products stored in Amazon FBA warehouses created a physical nexus and you should have been collecting sales tax for some time now.
You sell across multiple platforms and tracking sales tax obligations state by state got away from you.
A previous advisor told you that you were fine, but they were wrong.
You’re preparing to sell or exit your business and due diligence will surface anything unresolved.
One state has already been in touch, and you’re worried about others.

The Pros and Cons of a VDA

A VDA is the right move for many businesses, but not all – so here’s the honest balance. It’s important to weigh both sides before you commit to anything, and our team can help you do that.

The upside

Reduced exposure as the limited lookback means earlier periods are generally off the table.
Penalties typically waived, often the single biggest saving.
Payment plans can often be agreed, helping you pay tax back over time without disrupting your cashflow.
A structured, recognized route back to compliance, on terms agreed up front.
Lower risk of a future audit reaching back across many years of unreported periods

The trade-offs

It’s a commitment. Once agreed, you register, file returns and stay compliant as your business grows.
You pay what’s due for the agreed lookback period plus interest.
It isn’t always the best option and sometimes another route can cost less.

When you work with us, if a VDA isn’t your best option, we’ll say so and advise on a better approach.

What The VDA Process Looks Like

Free Assessment

We explore and quantify your actual exposure, state-by-state, so decisions are based on the true numbers rather than fear.

Get Your Free VDA Assessment

Honest Recommendation

We’ll look at the best next steps for you; A VDA, an alternative route or, occasionally, no action at all.

Anonymous Approach

In most states, the early stages can stay anonymous. We advise you on how that works in your states and what to expect.

Agree Terms

Once the lookback and penalty position is confirmed, your identity is shared so the terms can be finalized. We advise you at every stage.

Registration, Returns and Payment

We advise you on the registrations required, the returns due for the agreed period, and your payment options.

Stay Compliant

The same team advises you on your ongoing obligations, so you can always speak to someone who knows your account.

Most VDAs complete within two to six months, depending on the state, the periods involved and how quickly records can be pulled together.
We’ll start working on your case as soon as you give us the go-ahead.

Book a Call to Discuss

Who Should Consider a VDA, and Who Shouldn’t?

A VDA is usually worth serious consideration if you’ve built up a meaningful liability across past periods and the state you’ve been selling in hasn’t contacted you yet. If you’ve collected from customers and not paid it on, that’s the most urgent scenario of all – that money is held on the state’s behalf, so it’s important you move quickly.

A VDA is generally not available once a state has already contacted you or opened an audit, and it’s not always worth it if your exposure is small enough that simply registering and filing normally costs less. There are also alternatives: in some situations, you can limit the periods you report without a formal VDA. Don’t worry though, we’ll tell you honestly which applies to you.

One caution – don’t register with a state before assessing your exposure. Doing things in the wrong order can unintentionally increase your liability. Speak to our team first for the right advice.

Book a Call

Are Tax Returns for Past Periods Required?

Under a VDA, yes – but only for the agreed lookback period. You file and pay for those periods, plus interest, and provided your disclosure was accurate and complete, the state typically won’t pursue earlier liabilities. That’s one of the main reasons businesses like yours choose this route.

Don’t Just Take Our Word for It

VDA FAQs

What are the benefits of a VDA?
A VDA (Voluntary Disclosure Agreement) allows you to proactively resolve historical liabilities with a state before being contacted. In many cases, it significantly reduces exposure by limiting the lookback period and waiving penalties. It also provides a structured path to becoming compliant while reducing the risk of a future audit covering many years of unreported obligations.
What are the potential drawbacks?
VDAs are not the right solution for every business. Once put in place, you’re generally required to register, file returns and remain compliant moving forward. And you’ll typically pay what’s due for the agreed lookback period with any applicable interest. Careful analysis should be done first, which is exactly what our assessment is for.
Will I be protected afterwards?
A successfully completed VDA protects periods prior to the agreed lookback, providing your disclosure was accurate and complete.
Am I guaranteed a payment plan?
No. Payment plans are entirely at the state’s discretion. Some will offer arrangements in certain circumstances, while others require payment in full before finalizing. If payment assistance is needed, we can advise you on the options available and how to approach the state.
Is the VDA process anonymous?
In most states, the early stages can be conducted anonymously, so the state reviews the facts without knowing who you are. Once terms are agreed, your identity is revealed so everything can be finalized, and the necessary registrations completed.
How long does a VDA take?
Most complete within roughly two to six months, depending on the state’s response time, the number of periods involved and the availability of records. Straightforward cases can move faster; multi-state disclosures may take longer.

Key Takeaways

A VDA lets you settle past liability before a state contacts you, usually with a limited lookback and penalties waived.
In exchange, you file and pay what’s due for the agreed period (plus interest) and stay compliant from there.
Most complete in two to six months, and the early stages are usually anonymous
It isn’t always the right route; get an honest assessment before registering anywhere

Get the Honest Picture First

Start with a free assessment: a clear, state-by-state view of what you owe and the best route to fix it, VDA or otherwise. No charge, no judgement and definitely no scare tactics. We respond within 24 business hours, because we know how this feels.

About the Author

Reuben Mattinson is the founder and CEO of RJM. He hit the sales tax compliance wall nearly a decade ago while expanding his online business into the US. This inspired him to create a solution. Since then he has worked exclusively in US sales tax, alongside his team that has helped 5,000+ businesses across all 50 state