Voluntary Disclosure and Compliance Program
Under the Tax Department’s Voluntary Disclosure and Compliance Program, eligible taxpayers who owe back taxes and haven't filed related returns can avoid monetary penalties and possible criminal charges by:
- telling the department what taxes they owe;
- paying those taxes; and
- entering an agreement to pay all future taxes.
It's easy to apply. Just follow the prompts, answer a few questions, and submit your application electronically. Once we receive your application, we'll review it and contact you.
Current tax year debts
If you've filed a timely tax return for the current tax year, but can't pay in full, the Voluntary Disclosure Program is not for you. However, you may qualify for an installment payment agreement. Under the agreement, you'll make monthly payments toward your unpaid tax balance.
Taxpayers with undisclosed investments in Passive Foreign Investment Companies (PFIC)
If you have an undisclosed investment in a PFIC and would like to disclose the investment and income to us, follow the above steps. Please wait until we contact you before you submit any returns or payments. (After we contact you, be sure to correctly compute and report your PFIC tax liability.)
Look-back period for the disclosure of interest or investment income received from foreign bank accounts
- a minimum of six years if you held the account for six years or more
- the number of years you held the offshore account if it was less than six years
- also, if you are participating in the Internal Revenue Service (IRS) Offshore Voluntary Disclosure Initiative (OVDI) Program, the look-back period will be equal to the tax years that were required to be filed with the IRS