Advanced Quick Answer
How do I use the MTC multi-state VDA program to file in multiple states at once?
⚡ TL;DR
Submit one anonymous application to the MTC and it routes to all participating states you designate — far more efficient than managing separate VDA negotiations per state. Each state still negotiates its own agreement, so lookback periods vary. Multi-state negotiations typically take 3–6 months to complete.
The MTC program lets you knock on multiple state doors at once instead of managing separate VDA negotiations with each state individually.
Key takeaways
- Single application, multiple states: one anonymous application submitted to the MTC covers all participating states the seller designates, significantly reduces administrative overhead vs. state-by-state VDA management
- MTC’s role: the MTC coordinates the process and routes the application to each state; each state still negotiates and executes its own VDA: the MTC isn’t the contracting party
- Anonymity: the seller remains anonymous until the VDA terms are agreed upon with each state; if any state’s terms are unacceptable, the seller can withdraw from that state’s VDA without disclosing their identity
- State participation varies: check the current MTC participating state list before initiating; participation can change; some large states participate intermittently
- Lookback periods: each state negotiates its own lookback under the MTC program; there is no uniform MTC lookback, states follow their own VDA guidelines, though the MTC process gives leverage toward favorable terms
- Cost: the MTC charges a fee for coordinating the multi-state program; this fee is separate from any tax, penalty, or interest owed to the states; using a tax advisor or attorney to manage the process adds additional cost but is often worth it for sellers with significant exposure
- Timeline: multi-state VDA negotiations can take 3-6 months or more to complete; states review at different speeds; the seller can be in active negotiation with different states simultaneously
Frequently asked questions
What is the MTC multi-state VDA program?
The MTC National Nexus Program is a voluntary disclosure program administered by the Multistate Tax Commission that allows a seller (anonymously, through a representative) to simultaneously initiate VDA negotiations with multiple participating states. Instead of contacting each state individually, the seller submits one application through the MTC, which routes it to each participating state. Each state then negotiates its own VDA terms, but the coordination overhead is reduced significantly.
Which states participate in the MTC multi-state VDA program?
Participation varies and changes over time. Most states participate in the MTC program, including many of the high-volume ecommerce states. Some states (notably CA) have historically participated intermittently. Before initiating an MTC VDA, confirm the current participating state list on the MTC website, states can opt in or out of the program at any given time.
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