Voluntary Disclosure Agreement (Publication 178)
Out-of-State Voluntary Disclosure Program

The Out-of-State Voluntary Disclosure Program is available for an out-of-state business with the purpose of reporting use tax on sales to consumers in California.

Who Qualifies

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

  • You are located outside California and have not previously registered with us;
  • You are engaged in business in California as defined by Revenue and Taxation Code section 6203;
  • You have not been previously contacted by us regarding your activities in California;
  • 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; and
  • You register voluntarily with us.

How to Apply

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

After registration, the completed application for the Out-of-State Voluntary Disclosure Program should be sent to the following address:

Out-of-State Office
California Department of Tax and Fee Administration
651 Bannon Street, Suite 100
Sacramento, CA 95811

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 to 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 application contains a section where you may request relief from penalty.

Revision September 2020