The Multistate Tax Commission (“MTC”) recently spearheaded a campaign with two dozen states to allow for businesses using Amazon’s FBA services a chance to come clean. The opportunity for these businesses was to register with the states and collect tax on a prospective basis. The states would then generally forgive any back taxes owed by the business.
The response to the MTC’s program by taxpayers has been overwhelming. The MTC has been flooded with applications for amnesty. As of November 21, the MTC still had not concluded counting the number of applications received. The expected count of amnesty applications may be somewhere in the thousands.
If you did not take advantage of the amnesty program, there is still hope. Our firm discussed the possibility of another amnesty program with the MTC. The MTC is going to evaluate whether another amnesty program could be offered, especially once they have calmed down from the backlog of the current program. The most recent offering appears to have been a large success based on the initial response rate. It would make sense for the MTC to spearhead another amnesty offering.
The amnesty offering truly is an excellent solution for a taxpayer to not be put out of business based on his or her back-tax liability. Rather, the business is given the opportunity to be educated about its tax responsibilities and be compliant on a going forward basis. Best of all, the MTC acts as a one-stop-shop for facilitating the compliance on a prospective basis. The goal of the states should be one of educating taxpayers to increase compliance and not one of putting a taxpayer of business because of not knowing or understanding complicated and convoluted tax obligations.
Even if the amnesty program is not offered again or takes a while to be offered again, our firm has other options available for your business to still have its tax liability forgiven and be compliant on a going forward basis. Best of all, you can remain anonymous with the state(s) until we have reached an acceptable settlement offer with the state(s)!
About the Author: Gerald “Jerry” Donnini II is a partner of the Law Offices of Moffa, Sutton, & Donnini, P.A. Mr. Donnini concentrates in the area of Florida and Federal tax matters, with a heavy emphasis on the tobacco, convenience store and petroleum industries. He also handles a myriad of multi-state state and local tax issues. Mr. Donnini is a co-author for CCH’s Expert Treatise Library: State Sales and Use Tax and writes extensively on multi-state tax issues for SalesTaxSupport.com.
ADDITIONAL ARTICLES TO READ
THE VOLUNTARY DISCLOSURE PROGRAM, published October 11, 2017, by Jerry Donnini, Esq.
SALES TAX NEXUS AND SELLERS USING AMAZON’S FBA, published September 13, 2017, by Jerry Donnini, Esq.
STATES OFFER AMNESTY FOR FBA AMAZON PRORGAM, published August 13, 2017, by Jerry Donnini, Esq.
Tennessee Jumps on Economic Nexus Train, published March 13, 2017, by Jerry Donnini, Esq.