The Multistate Tax Commission (MTC) recently announced its Online Marketplace Seller Voluntary Disclosure Initiative. This is a special limited-time sales/use tax and income/franchise tax amnesty program for online sellers which will run from August 17 to October 17, 2017. During this period, online sellers with potential tax liability may be able to use the MTC’s voluntary disclosure agreement (VDA) to negotiate a settlement with participating MTC states if they meet certain eligibility requirements. Generally, this program is available to online sellers that have nexus with a participating state as a result of having inventory located in a fulfillment center or warehouse in that state, or from other nexus-creating activities of a marketplace provider/facilitator in the state.

Participating states include:  Alabama, Arkansas, Colorado, Connecticut, Idaho, Iowa, Kansas, Kentucky, Louisiana, Nebraska, New Jersey, Oklahoma, South Dakota, Texas, Utah, Vermont, and Wisconsin.

Most of the participating states have agreed to waive sales/use and income/franchise back tax liability (including penalties and interest) for prior tax periods provided the taxpayer registers as a seller or retailer and commences filing and paying tax due as of the effective date of the agreement.

Please contact your Somerset Advisor at 317-472-2200 or to discuss specific eligibility requirements and for assistance in taking advantage of this limited opportunity.