Voluntary Disclosure Agreement

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The City of Loveland welcomes the opportunity to voluntarily resolve potential sales and use tax liablities through Voluntary Disclosure Agreements.

Before entering into an agreement, the City will require the taxpayer or company to provide certain information, as dicussed below.

The letter should address the following:

Comprehensively describe the Company’s business, including what the business sells, the services it provides, the date the Company or its predecessor started conducting business in Loveland, any change of ownership, including change in the form of ownership and any other business facts that might have a bearing on tax liability.
An estimate of the City of Loveland tax liability for previous tax periods, explain the reason or the change in circumstances that has caused the Company to seek this agreement. Describe the nature of the contact of the Company with the City of Loveland which establishes that the company has met the definition of engaged in business.
A disclosure with respect to whether the Company has or has not collected City of Loveland sales/use tax and if so, where was it remitted.
A representation that the Company has not been previously contacted by the City of Loveland.
A representation that the failure to file is not the result of fraud or gross negligence on the part of the Company.

Upon review of your written request, you will be contacted by the Revenue Manager of the City of Loveland. If your request for a Voluntary Disclosure Agreement is accepted, generally, the following additional terms apply:

The Company will be required to perform a self-audit.
The self-audit will cover the past three years or the period of time that the Company was not in compliance with the City’s sales/use tax code if that period was less than three years.
The self-audit is subject to review.
Penalties normally will be waived, depending on the circumstances. However, by City ordinance, interest cannot be waived.
The Company will, within 30 days of the effective date of this agreement, complete and return all license applications and pay all fees required by the City of Loveland.
The Company will, within 60 days of the effective date of the agreement, remit any and all sales/use taxes including related interest and penalties.
As long as the Company is doing business in the Loveland, the Company will be required to collect and remit any sales or use tax owed until they cease to do any business in Loveland.
The Company agrees to make all financial records available to the City of Loveland upon reasonable notice to verify the factual representations made by the Company in this agreement or in any document referred to in this agreement.
The City agrees not to audit periods prior to the dates covered in the agreement, provided the Company is not in breach of the agreement.
This request will be included as part of the final agreement, therefore, any material misstatements or omissions will make the agreement voidable by the City of Loveland.

Submit a written request for a Voluntary Disclosure Agreement, addressed to:

Sales Tax Division
Kent Fierstine
500 E. Third St., Ste 110
Loveland, CO 80537

For questions, please call 970.962.2715 or e-mail.

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