The Multistate Tax Commission announced that it is working with 13 states to implement a sales tax amnesty program aimed at getting online retailers to register and file sales tax returns. The main benefit of the amnesty program is that sellers will not be required to report prior period sales, nor be required to pay penalties or interest on any back taxes owed. As of today, participating states include:
Alabama, Arkansas, Colorado, Connecticut, Kansas, Kentucky, Louisiana, Nebraska, New Jersey, Oklahoma, Texas, Utah, and Vermont. Eight additional states are considering participation but have not committed, and it is not clear whether these additional states will require back taxes to be reported and paid. The amnesty covers both sales & use taxes, as well as corporate franchise/income taxes.
The application period is August 17, 2017 to October 17, 2017 and taxpayers that have not been contacted will be able to start remitting taxes on future sales without penalty or liability for unreported past sales.
To be clear, this is a great opportunity for online retailers to clear up past sales tax obligations for pennies on the dollar. Never before have so many states come together to offer an amnesty program of this scope and size.
If you have any questions regarding this program, please email us at info@cpa-wfy.com or contact us here.
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