For those not yet in the know, the Multistate Tax Commission (MTC) has coordinated an unprecedented voluntary disclosure/amnesty program with 24 states. Eligible sellers should give serious consideration to enrolling. More importantly they should take immediate note of the short window of opportunity. The program began on August 17 and will be closing on October 17, and there is no expectation that a similar program will be offered in the future.
The program creates a unique opportunity for online sellers that have sales and income/franchise tax nexus in a participating states based on their use of marketplace providers/facilitators but are not currently collecting and remitting tax. While the rules vary by state, many jurisdictions are offering an effective “clean slate” meaning that sellers accepted into the program are absolved of any past liability so long as they register and agree to collect/remit going forward. Further, the MTC has worked to devise a uniform online application and has agreed to act as an intermediary between sellers and the states so as to preserve seller anonymity until the state agrees to provide the amnesty.
If you are interested in learning more about the program, additional information can be found on the Multistate Tax Commission and Taxify websites!
About the Author
Charles Maniace is the Director of Regulatory Analysis at Sovos. An attorney by trade, Chuck leads a team of attorneys and tax professionals responsible for all the tax and regulatory content that keeps Sovos clients continually complaint. Over his 15 year career in tax and regulatory automation, he has given talks and presentations on a variety of topics including The Taxation of High Tech Transactions, The Taxation of Remote Commerce, The Regulatory Implications of Brexit, The Rise of E-Audits, Form 1042-S Best Practices and Penalty Abatement Practices for Information Returns. Chuck is a member of the Massachusetts Bar and holds a BS in Business Economics from Bentley College, a JD from Boston University School of Law, and an LL.M in Taxation from Boston University School of Law.More Content by Charles Maniace