The Multistate Tax Commission is offering a one-time limited voluntary disclosure program targeted towards online marketplace sellers. Businesses would generally register to file and pay taxes on a prospective basis in exchange for relief from prior year taxes. Applications must be submitted by October 17, 2017 to be considered for participation in the program.
As with other voluntary disclosure programs, there are eligibility requirements for participation. The program is only available to online marketplace sellers with nexus in the state created by inventory stored in a third-party fulfilment center. The program is also limited to include income/franchise or sales/use taxes. Online marketplace sellers who have registered with the state, are filing applicable tax returns or have been contacted by the state are precluded from participation.
Participating states include: Alabama, Arkansas, Colorado, Connecticut, Florida, Idaho, Iowa, Kansas, Kentucky, Louisiana, Massachusetts, Minnesota, Missouri, Nebraska, New Jersey, North Carolina, Oklahoma, South Dakota, Tennessee, Texas, Utah, Vermont, Washington D.C. and Wisconsin. Additional states may choose to join before the end of the application period.
We encourage you not to delay consideration of this program or other available potential solutions. Please contact any of RubinBrown’s State and Local Tax (SALT) professionals if you have any unpaid SALT liabilities or if this disclosure program is an opportunity for your business. We are available to provide you with details regarding the application of this program to your business, evaluate viable alternatives and assist in preparing any required filings for the program or in the future.
Any federal tax advice contained in this communication (including any attachments): (i) is intended for your use only; (ii) is based on the accuracy and completeness of the facts you have provided us; and (iii) may not be relied upon to avoid penalties.
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