Voluntary Disclosure Program

The Rhode Island Division of Taxation encourages businesses and individuals who are not in compliance with Rhode Island tax laws to come forward voluntarily to pay Rhode Island taxes. The goal of the Division of Taxation is to ensure that taxpayers with a filing requirement in Rhode Island or doing business in this state are registered, collecting, and paying the taxes they are obligated to pay.  Qualified taxpayers may request to pay past due taxes under this program. The Division’s position on disclosures is determined by the specifics of each disclosure applicant.

The Division will generally agree to limit prior period exposure to three (3) years or to the date exposure was established unless the taxpayer has been collecting sales taxes but not paying. The Division may agree to waive all penalties for voluntary disclosures if the tax and interest due are paid when assessed.

If the taxpayer has been collecting taxes and not paying the tax, the Division will extend the period exposure to include all liabilities of this type. The specific facts of each case will determine the penalties.

To be considered for the Voluntary Disclosure Program, the disclosure applicant must not have been contacted by the Rhode Island Division of Taxation before initiating the disclosure process.

To participate in the program, a written request should be sent to the Rhode Island Division of Taxation.  To remain anonymous, a representative such as an accountant or attorney may send the request on the taxpayer’s behalf.  The written request must include:

  • Tax type;
  • Description of the applicant’s activities in the state;
  • Starting date of the applicant’s activities in the state;
  • Reasons for noncompliance with Rhode Island tax laws;
  • Amount of potential tax liability;
  • Principal location (state) of the business and the state of incorporation;
  • Whether the company has been contacted by the Rhode Island Division of Taxation;
  • Whether the company has collected, but not remitted, Rhode Island Tax; and
  • Any additional information or extenuating circumstances to support the request.

To apply to the Voluntary Disclosure Program, the taxpayer may mail a written request to:

Rhode Island Division of Taxation

Audit & Investigation

One Capitol Hill

Providence, RI 02908

Attn: Voluntary Disclosure

or email a written request to: Tax.Audit@tax.ri.gov

Once your written request is reviewed, the Tax Division will respond with a letter outlining its position.  At that time the taxpayer may decide whether or not to disclose and enter into the agreement.

If the taxpayer has liability in more than one state, you may consider applying for multi-state voluntary disclosure through the Multistate Tax Commission. More information about the MTC's Voluntary Disclosure Program and the application for Multi-state Voluntary Disclosure is available Multistate Voluntary Disclosure Program - MTC.

Any returns which would normally be required to be filed can still be filed with the Division of Taxation. A letter may be addressed to the Tax Administrator, with the required returns, requesting a penalty waiver. Full payment of any taxes and interest due would be required for the penalty waiver to be considered at the Tax Administrator's discretion.

Contact Information

Audit and Investigation Section

Email:  Tax.Audit@tax.ri.gov

Phone:  401.574.8962 

Fax:  401.574.8916

Mail: Rhode Island Division of Taxation

         Audit & Investigation

         One Capitol Hill

         Providence, RI 02908

         Attn: Voluntary Disclosure