Multistate Tax Commission Amends Voluntary Disclosure Application to Reflect Pivotal U.S. Supreme Court Decision

     As a direct result of the U.S. Supreme Court’s decision in South Dakota v. Wayfair, the Multistate Tax Commission’s (MTC) Nexus Committee has amended its voluntary disclosure application (VDA) to require additional information.  

    The MTC’s voluntary disclosure program forgives certain past tax liabilities (including interest and penalties) of sellers in exchange for the seller agreeing to prospectively collect and remit sales tax.   

    This change is in direct response to the Court overturning the Quill physical presence nexus standard for the imposition of sales and use taxes.

    Program Amendments

    The MTC has modified their VDA program – in light of Wayfair – such that applicants wishing to participate in the program are now required to report their sales volume and number of sales within a state during the past year.  

    Post-Wayfair, a state may now impose its sales and use taxes on remote sellers based on the seller’s transactions and/or sales dollar volume in jurisdictions because physical presence is no longer required to impose tax.  For example, South Dakota’s sales tax economic nexus provision sets forth a requirement that retailers collect and remit South Dakota sales tax if the seller has 200 transactions or $100,000 of in-state sales. 

    What Does CohnReznick Think?

    The Multistate Voluntary Disclosure Program provides a means for a taxpayer with potential past tax liability to more effectively remediate these past liabilities, i.e., by means of a uniform procedure coordinated through the National Nexus Program of the Multistate Tax Commission.  As businesses attempt to identify their nexus footprint post-Wayfair, it is anticipated that some taxpayers will conclude that they had nexus for prior years by virtue of traditional standards (e.g., in-state employees, agents, etc.).


    For more information, please contact Corey Rosenthal, Principal, State and Local Tax Services, at 646-625-5729 or

    Subject matter expertise

    • corey rosenthal
      Contact Corey Corey+Rosenthal
      Corey Rosenthal

      JD, Principal, Practice Leader, State and Local Tax (SALT) Services

    • Close


      Let’s start a conversation about your company’s strategic goals and vision for the future.

      Please fill all required fields*

      Please verify your information and check to see if all require fields have been filled in.

      Please select job function
      Please select job level
      Please select country
      Please select state
      Please select industry
      Please select topic

    Tax Reform: The Tax Cuts and Jobs Act – What you need to know, now

    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.