Liability intake from compliance workflows
Organize identified exposure from compliance review, reverse audit, and purchasing workflows into VDA projects.
Enterprise workflow · Available by engagement
Voluntary Disclosure Automation is an enterprise workflow for addressing identified liabilities through structured voluntary disclosure project management, documentation, and coordinated review.
What it does
When compliance review, reverse audit, or purchasing analysis surfaces historical exposure, businesses need a disciplined path toward remediation. Voluntary Disclosure Automation helps teams organize identified liabilities into a structured voluntary disclosure workflow rather than ad hoc email chains and scattered spreadsheets.
The module intake connects exposure findings from Sales Tax Compliance, Purchasing Tax Compliance, reverse audit review, and related compliance workflows into a project-oriented VDA workspace. Teams track state-by-state process steps at a conceptual level, prepare supporting workpapers, and maintain visibility into progress and ownership.
Workflow tracking supports coordination between internal finance and tax teams and external advisors where appropriate. Document preparation emphasizes organized evidence, liability summaries, and review checkpoints rather than autonomous legal filings.
Prophit.ai positions voluntary disclosure as a controlled enterprise workflow that complements operational compliance modules. Availability and scope depend on engagement, configuration, and contract terms.
Why it matters
Unaddressed sales and use tax exposure creates growing risk. A structured VDA workflow helps operators move from identification to a documented compliance posture with clearer accountability.
Enterprise and multi-state operators need project visibility when several jurisdictions and advisors are involved. Centralized workflow tracking reduces rework and missed deadlines.
Where it fits in the platform
Follows exposure identification in Sales Tax Compliance, Purchasing Tax Compliance, and One-Click Reverse Audit. Connects to Returns Centers for filing-oriented remediation planning and platform documentation patterns for workpaper preparation.
Core capabilities
State-oriented process management
Track voluntary disclosure steps and status by jurisdiction at a conceptual workflow level.
Documentation & workpapers
Prepare structured supporting documentation for internal review and advisor coordination.
Workflow tracking
Maintain ownership, milestones, and progress visibility across disclosure projects.
Risk mitigation posture
Support a move from identified exposure toward documented remediation planning.
Advisor coordination support
Provide organized artifacts for internal teams and external tax or legal advisors where engaged.
Data this area uses
- Identified liabilities and exposure summaries, compliance review outputs, reverse audit findings, jurisdiction context, and supporting transaction or invoice evidence.
What it produces
- VDA project records, workflow status views, organized workpapers, liability summaries, and review checkpoints for enterprise disclosure programs.
How it connects
- One-Click Reverse Audit · Sales Tax Compliance · Purchasing Tax Compliance · Returns Centers
Frequently asked questions
- What is a voluntary disclosure agreement?
- A voluntary disclosure agreement (VDA) is a process through which a business reports previously unpaid tax to a jurisdiction, often with defined terms for lookback, interest, and penalties. Prophit.ai helps organize the workflow; it does not replace professional tax or legal advice.
- When should a business consider voluntary disclosure?
- When material historical sales or use tax exposure has been identified and leadership wants a structured path toward compliance. Prophit.ai helps operationalize that path after findings exist.
- How does Prophit.ai help manage sales tax exposure?
- Compliance and reverse audit modules identify exposure. Voluntary Disclosure Automation organizes those findings into tracked VDA projects with documentation and workflow visibility.
- Can Prophit.ai connect liabilities to a VDA workflow?
- Yes, at the workflow level. Identified liabilities from compliance and recovery review can feed structured VDA project intake where the module is enabled for your organization.
- Does voluntary disclosure replace legal or tax advice?
- No. Prophit.ai provides operational workflow and documentation support. Significant disclosure decisions remain with your tax advisors and legal counsel.