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 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,
• You did not pay the tax or file a return 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:

• We require a username and password for access to Online Services account features, such as registering for an account, making changes to your account, or filing a return. Sign up now to begin the enrollment process. Then log in with your username and password and select Register a New Business Activity or Location, or register at any of our office locations, and
• Complete and submit CDTFA-38, Application for Out-of-State Voluntary Disclosure, within 30 days.

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 MIC:OH
Sacramento CA 95811

We will notify you approximately two weeks after we receive the application of your status in the program. If you receive an acceptance letter, we will ask you to electronically file your tax returns. You may file and pay your tax return by accessing our Online Services webpage using your username and password.

During the username and password registration, you will be prompted to request a security code. We will mail the security code to you at the mailing address on record within 7-10 business days. Once you receive your security code, you will return to our Online Services webpage and complete the process to gain access. For more information about the online services we offer, see Video Resources and Tutorials.

Making a Payment

You may make a payment online when you file, or you can mail a check 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 Express Login option. For additional payment information, visit our Make a Payment page.

How to Request Relief from Penalty

To request relief of penalty, you must write and sign under penalty of perjury a request which sets forth the facts regarding why the late filing or lay payment occurred.

CDTFA-38, Application for Out-of-State Voluntary Disclosure, contains a section where you may request relief from penalty.