Short Window of Opportunity:
MTC Online Marketplace Seller Voluntary Disclosure Initiative
With the ever changing budget issues at the state and local levels, sales and income taxes are becoming more strategic revenue sources to address these issues. Recent rulings in many states recognize that sellers in any online marketplace must adhere to the sales and income tax rules at the state and local levels, not the third-party marketplace fulfiller. This means that if you participate in any third-party Online Marketplace (such as Amazon or Walmart, to name two) where the Marketplace holds your inventory for order fulfillment or otherwise facilitates your sales, there may be sales and/or income tax obligations in states you did not realize.
To help ease the pain for Online Marketplace sellers, the Multistate Tax Commission (MTC) is offering a special, possibly once-in-a-lifetime, amnesty program to allow sellers that may be affected to come forward to states with a limited forgiveness of past taxes, penalties, and interest, as well as the opportunity to become compliant prospectively. There are twenty-four states participating in the program, which runs now through October 17, 2017. This short window of opportunity is not one to miss!
Please contact your SVA professional to learn more about this initiative today. Even if you believe this program may not apply to you, please contact us today to further discuss your state and local business connections, as other taxes and statutes may be applicable to your business.