If you owe taxes to New York City, you may be eligible to join the Voluntary Disclosure and Compliance Program (VDCP). If you are accepted into VDCP, Finance will waive penalties and may not require that you file past due tax returns and make tax payments for some periods. You or your representative may contact Finance at any time to ask to participate in the VDCP.
If you have already been contacted by 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 discovered before coming forward.
You or a representative may contact Finance to discuss eligibility for VDCP before filing returns to pay past due taxes. Once accepted into the VDCP, you will receive Finance’s written commitment to waive penalties and a list of the periods for which you are required to file.
Taxpayers that owe taxes to both New York City and New York State may contact the State Department of Taxation and Finance to join in the Unified Program. Under this program, you submit your request to the State and receive one agreement that covers taxes owed to both the City and the State.
Voluntary Disclosure and Compliance Program Brochure
Statement of Audit Procedure
Voluntary Disclosure #PP-2009-1rev. 5/24/12
To be eligible for the VDCP you cannot:
- Be currently under audit by Finance; or
- Have had prior contact with 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.
Please submit a written request, which may be anonymous, to:
NYC Department of Finance
TPP Division - Voluntary Disclosure and Compliance Coordinator
345 Adams Street, Seventh Floor
Brooklyn, New York 11201
The request must include the following information:
- A description of the business activities in New York City and New York State;
- When these activities began;
- The number of employees involved in the business and their titles;
- When the taxpayer believes taxes were first due;
- The reason the taxes were not paid in the past;
- The estimated business taxes on a year-by-year basis;
- An affirmation that NYC has not contacted the taxpayer before about these specific tax liabilities and that the taxpayer is not currently under audit by Finance for any City tax.
Before sending a formal written request, you may call 311 for more information. Please note that calling 311 is not a request to join the VDCP.
We will review the information you submit to verify eligibility and to determine the tax periods to be filed. If you are found eligible for the VDCP, we will issue you a Voluntary Disclosure and Compliance Agreement Letter, which usually gives you 30 days to file the requested returns.