The MTC Offers Limited-Time State Tax Amnesty Program For Online Sellers

by Mary Amarelo

Recently the Multistate Tax Commission (MTC) announced a special limited-time sales/use tax and income/franchise amnesty program for online sellers.  What is being called the "Online Marketplace Seller Voluntary Disclosure Initiative" will run now through October 17th of this year.  Under this program, taxpayers may apply to the states listed below, and waive the tax liability and related tax interest and penalties on past due sales/use tax and income/franchise tax returns (some exceptions apply) in connection with online retail sales activities.

• 
  Taxpayers who have not registered with the state, filed tax returns with the state for the tax type, or had prior contact with the state.
• Taxpayers who are online sellers using a marketplace provider and have no assets or activities in the state other than the maintenance of inventory at a fulfillment center.
• Taxpayers who register online during the initiative and either begin collecting sales tax by December 1 or file an income tax return for the period that includes December 1, 2017.

Currently the states participating in the MTC Voluntary Disclosure Program for Online Marketplace Sellers includes: Alabama, Arkansas, Colorado, Connecticut, District of Columbia, Florida, Idaho, Iowa, Kansas, Kentucky, Louisiana, Massachusetts, Minnesota, Missouri, Nebraska, New Jersey, North Carolina, Oklahoma, South Dakota, Tennessee,  Texas, Utah, Vermont and Wisconsin.  This list is subject to change so check the MTC's website for the official and current list.  Taxpayers may select the states for which they apply for amnesty under the MTC- this is not an "all or nothing" opportunity.

Contact your Sweeney Conrad Advisor at 425.629.1990 to discuss specific eligibility requirements and to take advantage of this limited opportunity.