The Benefits of Outsourcing Voluntary Disclosure Agreements for CPAs and Small Tax Firms

When you take on new clients or manage a small sales tax compliance firm, voluntary disclosure agreements (VDAs) can quickly become a time-consuming challenge. Whether dealing with sales tax or income tax VDAs, the process demands detailed research, careful negotiation, and ongoing follow-up. Instead of stretching your resources thin or learning the complexities on your own, outsourcing these projects to a specialized firm can free up your time and reduce risks. This article explains why voluntary disclosure outsourcing is a smart choice for CPAs and small tax firms.

Tax professional working on voluntary disclosure agreements

Why Voluntary Disclosure Agreements Require Specialized Attention

VDAs allow taxpayers to come forward and report previously unfiled or underreported taxes, often avoiding penalties and reducing interest. However, the rules and procedures vary widely by state and tax type. Sales tax VDAs differ from income tax VDAs in terms of look-back periods, documentation requirements, and negotiation tactics, but they are required to completed at the same time, if necessary.

Handling these agreements requires:

• In-depth knowledge of state-specific voluntary disclosure programs, eligibility, and time commitment for each VDA

• Understanding eligibility can save time and effort when deciding to apply to programs

• Expertise in creating precise disclosures to identify which states mandate paper registration or returns compared to online methods.

• A quick pace to gather information from client within the deadline imposed by the state, usually 30-60 days from acceptance.

  
  

If you or your team lack this expertise, the learning curve can be steep and costly.

How Outsourcing VDAs Saves You Time and Effort

When you outsource your voluntary disclosure projects, you delegate the complex and time-intensive work to VDA experts who focus solely on these agreements. This approach lets you concentrate on your core services and client relationships.

Consider these time-saving benefits:

• No need to research each states programs and nuances

• Avoid trial and error in preparing disclosures and negotiating terms

• Reduce administrative burden by letting specialists handle paperwork and follow-ups

• Speed up resolution by working with professionals familiar with tax authority expectations

  
  

For example, a small sales tax compliance firm juggling multiple clients can quickly become overwhelmed by the detailed requirements of each state's VDA program. Outsourcing allows the firm to maintain quality service without sacrificing time.

Reducing Risk Through Expert Handling

Mistakes in voluntary disclosure agreements can lead to audits, penalties, or missed opportunities for relief. A VDA expert understands how to present your client’s case clearly and accurately, minimizing the risk of complications.

Outsourcing also helps you:

• Ensure compliance with all disclosure requirements

• Avoid underreporting or overreporting tax liabilities

• Navigate complex negotiations with tax authorities

• Keep up with changes in tax laws and policies

How Voluntary Disclosure Outsourcing Supports Your Firm’s Growth

By outsourcing VDAs, you free up valuable resources that can be redirected toward expanding your client base or enhancing other tax services. This flexibility is especially important for small firms with limited staff.

Benefits for your firm include:

• More time to focus on client acquisition and retention

• Ability to offer comprehensive tax services without overextending

• Access to expert knowledge without hiring full-time specialists

• Improved client satisfaction through timely and accurate VDA handling

  
  

A CPA firm owner who refers VDA projects to a trusted partner can maintain strong client relationships by providing expert solutions without the overhead of managing these complex cases internally.

Detailed view of tax document prepared for voluntary disclosure

When to Consider Referral VDA Services

If your firm occasionally encounters voluntary disclosure needs but lacks the bandwidth or expertise, referral VDA services offer a practical solution. You can send these projects to a VDA expert while maintaining control over client communication.

Referral VDA arrangements allow you to:

• Offer clients specialized help without disrupting your workflow

• Build partnerships with firms that focus on voluntary disclosures

• Ensure clients receive expert attention and favorable outcomes

• Maintain your firm’s reputation by delivering quality results

  
  

This approach works well for CPAs who want to provide full-service tax support but prefer to leave complex VDA cases to specialists.

Final Thoughts on Outsourcing Voluntary Disclosure Agreements

Outsourcing voluntary disclosure agreements is a strategic choice that helps CPAs and small tax firms manage their workload, reduce risk, and improve client service. Whether dealing with sales tax or income tax VDAs, working with a VDA expert ensures your clients receive accurate, timely, and compliant disclosures.

By choosing voluntary disclosure outsourcing, you gain more time to focus on growing your firm and serving your clients’ broader tax needs. If you want to avoid the steep learning curve and administrative burden of VDAs, consider partnering with a specialized firm or referral VDA service. This decision can strengthen your practice and provide peace of mind in handling complex tax disclosures.

Cassone Consulting is equipped to assist with your outsourcing requirements. With almost a decade of experience, we are efficient and proactive in handling your VDAs. Cassone Consulting can collaborate with you to deliver services to your clients or offer a white-label solution using an email you supply. Additionally, since VDAs are our sole focus, you can rest assured that we won't attempt to poach your clients.

Contact us at Kristina@cassoneconsulting.com to learn more.