Voluntary Disclosure Program

What is the Voluntary Disclosure Program?

The purpose of the voluntary disclosure program is to encourage unregistered business entities and persons to voluntarily contact the Department regarding unreported Iowa tax liabilities.

Which Taxes are Eligible?

The following taxes are eligible under the Voluntary Disclosure Program:

Who is Eligible?

The Department has discretion to determine who is eligible for participation in the voluntary disclosure program. In making the determination, the Department may consider the following factors:

a. The person must be subject to Iowa tax on Iowa-source income or have Iowa tax collection responsibilities and must have tax due;

b. The person must not currently be under audit or examination by the Department or under criminal investigation by the Department;

c. The person must not have had any prior contact with the Department or a representative of the Department which could lead to audit or assessment associated with the tax types or tax periods sought to be addressed under the program;

d. The type and extent of activities resulting in Iowa-source income;

e. Failure to report the Iowa-source income or pay any liability was not due to fraud, intentional misrepresentation, an intent to evade tax, or willful disregard of Iowa tax laws; and

f. Any other factors which are relevant to the particular situation.

How Do I Apply?

You or your representative must submit a written application to:

Nonfiler Unit
Compliance Division
Iowa Department of Revenue
PO Box 10456
Des Moines, Iowa 50306-0456

You or your representative may initially contact the Department on an anonymous basis. Anonymity of the taxpayer can be maintained until the voluntary disclosure agreement is executed by the taxpayer and the Department.

What Happens Going Forward?

The voluntary disclosure program may be used by the Department and the taxpayer to report previous periods of Iowa-source income and to settle outstanding tax, penalty, and interest liabilities, but it must also ensure future tax compliance by the taxpayer.

Questions About Iowa Voluntary Disclosure?

Multi-state Voluntary Disclosure

If taxpayers have a liability in more than one state, they may consider applying for multi-state voluntary disclosure through the Multistate Tax Commission (MTC).  More information about the MTC’s Voluntary Disclosure Program and the application for Multi-state Voluntary Disclosure are available at http://www.mtc.gov/Nexus.aspx?id=4967.