Six weeks remain to opt to participate in the Multistate Tax Commission’s (MTC) voluntary tax amnesty program for online marketplace sellers, like those participating in Amazon’s Fulfillment by Amazon program. The MTC’s amnesty program runs now through October 17.
In July 2017, the MTC announced a voluntary tax amnesty program for unregistered online marketplace sellers that have nexus and back tax exposure resulting from the storage of inventory in third-party fulfillment centers that facilitate retail sales into a state. Under the program, eligible taxpayers may obtain amnesty from any past due sales (and possibly income or franchise tax liability), including interest and penalties, in connection with online retail sales activity in participating states. Applications for amnesty are submitted through the MTC, and participating states will consider applications received during the amnesty period of August 17, 2017 through October 17, 2017.
Participating states include:
- District of Columbia
- New Jersey
- North Carolina
- South Dakota
Under the MTC’s program, participating states will generally agree to waive back tax liability for eligible applicants provided that the taxpayer registers and begins filing returns as of the state’s effective date.
Specific participation and eligibility requirements may vary by state. Online applications and other eligibility information can found here.