Florida Voluntary Disclosure

What is Florida’s Voluntary Disclosure Program?

Florida’s Voluntary Disclosure Program is designed to encourage taxpayers to come forward and rectify any tax obligations they may have overlooked or miscalculated. This program allows individuals and businesses to voluntarily disclose past tax liabilities to the Florida Department of Revenue and work out a resolution without facing the usual penalties that come with such lapses.

Why Participate in the Voluntary Disclosure Program?

1. Penalty Relief: One of the primary benefits of participating in the program is the potential to reduce or eliminate penalties. While taxpayers will still be responsible for paying the taxes owed along with any applicable interest, the program offers relief from additional penalties that might otherwise apply.
2. Avoiding Legal Action: By proactively addressing tax liabilities through the program, taxpayers can avoid more severe legal consequences, including audits or legal action that may arise from unreported or underreported taxes.
3. Peace of Mind: Coming forward and resolving past tax issues can provide peace of mind and allow taxpayers to focus on their current and future financial activities without the lingering stress of unresolved tax matters.

How to Participate in the Voluntary Disclosure Program

1. Assess Your Situation: Before initiating the process, conduct a thorough review of your tax records to determine if there are any past liabilities or discrepancies. This step is crucial in ensuring that all potential issues are addressed during the disclosure.
2. Contact the Florida Department of Revenue: Reach out to the Florida Department of Revenue to express your interest in participating in the Voluntary Disclosure Program. They will provide guidance on the process and the necessary steps to follow.
3. Submit a Disclosure Application: Complete the Voluntary Disclosure Application form. This form will require detailed information about your tax situation, including the types of taxes involved, the periods in question, and the reasons for the oversight.
4. Negotiate Terms: Once your application is reviewed, the Department of Revenue may work with you to negotiate the terms of the resolution. This typically involves paying the taxes owed plus interest, with penalties potentially being reduced or waived.
5. Implement Compliance Measures: After resolving past liabilities, take steps to ensure future compliance. This may include setting up better record-keeping practices, conducting regular internal audits, or seeking ongoing advice from tax professionals.

Key Considerations

1. Timeliness: Addressing tax issues promptly is important. The sooner you come forward, the more likely you are to benefit from the program’s penalty relief provisions. Delaying action could result in missed opportunities for penalty reduction.
2. Complete Disclosure: When participating in the program, ensure that you disclose all relevant information accurately. Partial or incomplete disclosures could lead to complications or disqualification from the program.
3. Professional Assistance: Consider consulting with a tax professional or attorney who specializes in tax issues to guide you through the process. They can help ensure that your disclosure is handled correctly and that you achieve the best possible outcome.

Conclusion

Florida’s Voluntary Disclosure Program offers a valuable opportunity for taxpayers to resolve past tax liabilities with reduced penalties and avoid potential legal issues. By coming forward and addressing these matters proactively, you can not only clear up past issues but also set the stage for future tax compliance and peace of mind. If you think you might benefit from the program, please don’t hesitate to contact me.

Rule 12-13.0075(8), F.A.C., Voluntary Self-Disclosure of
Liability.