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 has been involved in monitoring the progress of the Streamlined Sales Tax Initiative and has given talks and presentations on a variety of tax topics including Sarbanes-Oxley, drop shipments, the taxation of high technology transactions, and the growth of sales tax holidays. He is a lawyer and 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. Prior to joining Sovos Compliance, he worked as an arbitration attorney for John Hancock.More Content by Charles Maniace