Voluntary Disclosure and Compliance Program

Taxpayers who owe taxes to New York City and have not filed the related tax returns may be eligible for the Voluntary Disclosure and Compliance Program (VDCP).

Acceptance into VDCP will result in the Department of Finance waiving all delinquency-related penalties, and the taxpayer may not be required to file some past-due tax returns. The VDCP requires that the taxpayer file tax returns and make tax payments for some periods; this is known as the “limited look-back period.” You or your representative may contact us (see contact information below or call 311) at any time to ask for additional information on how to join the Voluntary Disclosure and Compliance Program.

Please be aware that if you have already been contacted by the Department of Finance for the taxes due, you are not eligible for this program. You may face penalties, interest, and possible criminal prosecution in addition to owing the tax amount due if you are identified by the Department of Finance before coming forward.

You or a representative should contact us (see contact information below or call 311) to discuss eligibility for VDCP before filing returns to pay past due taxes. Once accepted into the Voluntary Disclosure and Compliance Program, you will receive a written commitment to waive penalties and a list of the periods for which you are required to file returns.

Taxpayers who owe taxes to both New York City and New York State may contact the New York State Department of Taxation and Finance to join in the Unified Program. Under this program, you submit your request to New York State directly; however, each jurisdiction will issue a separate agreement. For example, the state will issue its own agreement, while New York City will issue its own agreement.

Statement of Audit Procedure
Voluntary Disclosure #PP-2021-1. 1/22/21

Eligibility

To be eligible for the VDCP you cannot:

• Be currently under audit by the Department of Finance; or
• Have had prior contact with the Department of Finance about the specific liabilities involved; or
• Be party to any criminal investigation being conducted by NYS or any political subdivision of NYS; or
• Be related to a tax avoidance transaction that is a Federal or NYS reportable Transaction.

Note: You may participate in the program even if your tax delinquency is due to fraud or was otherwise intentional.

Application Process

Taxpayers can apply to the New York City Department of Finance’s Voluntary Disclosure and Compliance Program online through Business Tax e-Services or by mail to the address below. For faster service, we encourage you to apply online.

If you would like to apply by mail, please mail a completed paper application to this address:

NYC Department of Finance
TA&E Division - Voluntary Disclosure and Compliance Coordinator
375 Pearl Street, 29th Floor
New York, NY 10038

Both the online and paper applications can be filed anonymously, and both must include the required information below:

• An affirmation that the New York City Department of Finance has not contacted the taxpayer before about these specific tax liabilities, and that the taxpayer is not currently under audit by the Department of Finance for any city tax.
• A description of the business activities in New York City and New York State, including when these activities began and the number of employees involved in the business and their titles.
• The estimated business taxes on a year-by-year basis, for all delinquent periods.
• The type of tax for which the taxpayer is submitting a VDCP.
• The dates on which the taxpayer believes the taxes were first due.
• The reason the taxes were not paid in the past.

For more information about the Voluntary Disclosure Compliance Program, please call 311. Please note that calling 311 is not a request to join the VDCP.

Once the VDCP application is accepted, information you submitted during the application process will be reviewed to verify your eligibility and determine the tax periods to be filed. If you are found eligible for the VDCP, you will receive a Voluntary Disclosure and Compliance agreement letter, which usually gives you 30 days to file the requested returns.