Voluntary Disclosure Agreement (Publication 178)
In-State Voluntary Disclosure Program

The In-State Voluntary Disclosure Program is available to an in-state purchaser with the purpose of reporting use tax on purchases from a retailer outside this state.

Who Qualifies

To qualify for the In-State Voluntary Disclosure Program, you must meet all of the following conditions:

  • You reside or are located within California, and have not previously registered with us;
  • You have not previously filed an Individual Use Tax Return with us;
  • You have not reported an amount for use tax on your Individual Income Tax Return filed with the Franchise Tax Board;
  • You are not engaged in business in this state as a retailer as defined in Revenue and Taxation Code section 6015 (please see publication 107, Do You Need a California Seller's Permit?, for more information);
  • You have not been contacted by us for failure to report the use tax as imposed by Revenue and Taxation Code section 6202;
  • Your failure to pay the tax or file a return was due to reasonable cause and not as a result of negligence, intentional disregard of the law, or by an intent to evade the tax;
  • Your purchase is not of a vehicle, vessel, or aircraft; and
  • You voluntarily come forward to us.

How to Apply

To apply for participation in the In-State Voluntary Disclosure Program:

It will take approximately two weeks after we have received the application for you to be notified of your status in the program. If you receive an acceptance letter, you will be asked to electronically file your tax return(s). You may file and pay your tax return online by accessing online services either by using your Limited Access Code or by using your username and password. A Limited Access Code is assigned to you when your registration is approved. For access to full online services account features, such as making changes to your account or filing a return online, you are required to create a username and password.

To register for a username and password, go to www.cdtfa.ca.gov. Click on Login, the Taxpayer Online Services Portal webpage will appear, then scroll down and click View Accounts. Create a username and password by clicking on Sign Up Now (listed under Create a Username).

During the username and password registration, you will be prompted to request a security code. The security code will be mailed to you at the mailing address provided within seven to ten (7-10) business days. Once you receive your security code you will return to the CDTFA website and complete the steps above to access your account. If you have not received your security code by the time your return or payment is due, you can use your Limited Access Code to file your return and pay the amount due.

Payment may be made online at the time of filing or a check can be mailed with your account number and the period being paid in the memo line. A printable voucher is available for prepayments made by check, using the Limited Access Functions.

To request a written opinion on whether the CDTFA would approve a voluntary disclosure request, see the instructions on the tab How to Request a Written Opinion.

How to Seek Relief from Penalty

To seek relief of penalty, a written request which sets forth the facts regarding why the late filing or late payment occurred must be made and signed under penalty of perjury.

The CDTFA-38-I application contains a section where you may request relief from penalty.

Revision September 2020