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10/18/2017
Multistate Tax Commission Extends Tax Amnesty Deadline for Online Marketplace Sellers
Multistate Tax Commission Extends Tax Amnesty Deadline for Online Marketplace Sellers
At its October 11, 2017 meeting, the Multistate Tax Commission’s (MTC) Nexus Committee extended both the application and registration deadlines for its Voluntary Disclosure Program, called the Online Marketplace Seller Voluntary Disclosure Initiative (the Program). As noted in our previous alert, Multistate Tax Commission VDP Alert, the Program provides an opportunity for online marketplace sellers (remote sellers) to prospectively begin collecting sales tax in a significant number of jurisdictions and also allows for limited prior filings in a number of other jurisdictions.
Voluntary Disclosure Application and State Registrations
The original application period ran from August 17, 2017, to October 17, 2017, but is now extended to November 1, 2017. In addition, taxpayers accepted into the Program are now allowed 30 days after receiving notice that the taxing state has signed the voluntary disclosure agreement to register with such state. Previously, an online seller participating in the Program was required to register with the taxing state no later than December 1, 2017.
Currently, the following 25 states are participating in the Program:
What Does CohnReznick Think?
The Multistate Tax Commission has received far fewer applications for the Voluntary Disclosure Initiative than anticipated. There are several factors that could be contributing to the low number of applications. These factors include awareness of the program, remote sellers not falling within the specific eligibility criteria, and uncertainty as to whether a business has nexus or a minimum connection with a participating state. Taxpayers should contact their state and local tax professional to address these issues and to determine whether they could benefit from participating in the Program.
Contact
For more information, please contact Corey Rosenthal, Principal, State and Local Tax Services, at corey.rosenthal@cohnreznick.com or 646-625-5729.
Subject matter expertise
Corey Rosenthal
JD, Principal, Practice Leader, State and Local Tax (SALT) Services
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Any advice contained in this communication, including attachments and enclosures, is not intended as a thorough, in-depth analysis of specific issues. Nor is it sufficient to avoid tax-related penalties. This has been prepared for information purposes and general guidance only and does not constitute legal or professional advice. You should not act upon the information contained in this publication without obtaining specific professional advice specific to, among other things, your individual facts, circumstances and jurisdiction. No representation or warranty (express or implied) is made as to the accuracy or completeness of the information contained in this publication, and CohnReznick LLP, its partners, employees and agents accept no liability, and disclaim all responsibility, for the consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this publication or for any decision based on it.