Oklahoma’s VDA Program Helps Taxpayers Get Back on Track

Oklahoma’s Voluntary Disclosure Agreement (VDA) Program offers individuals and businesses a valuable opportunity to resolve prior tax liabilities while reducing penalties and interest.

Through the VDA program, eligible taxpayers may voluntarily come forward to report and pay previously unpaid Oklahoma taxes. In return, the Oklahoma Tax Commission (OTC) may waive penalties and, in some cases, reduce interest by up to 50 percent. This can significantly lessen the financial and administrative burden of correcting past tax issues.

VDAs are commonly used by businesses that discover a tax obligation after the fact, often during internal reviews, mergers and acquisitions, or routine compliance checks. Companies located outside of Oklahoma may uncover an economic nexus with the state, triggering vendor use tax responsibilities. Similarly, Oklahoma-based businesses may realize they have not been properly collecting or remitting sales tax or paying required income taxes.

In most cases, taxpayers participating in the VDA program engage a CPA firm to act as their power of attorney. CPAs work directly with the OTC on the taxpayer’s behalf, providing documentation, managing communications, and guiding the process from application through resolution.

For taxpayers seeking to come into compliance proactively, Oklahoma’s VDA program can be an effective path forward, especially when supported by experienced CPA guidance.

Learn more at oktap.tax.ok.gov.