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For two months in the fall of 2017, online marketplace sellers can take advantage of something unprecedented—a multistate sales tax amnesty specifically designed to help marketplace sellers become sales tax compliant with minimal effort and no out-of-pocket expense.
In the past, individual states would from time to time offer sales tax amnesty to retailers who, for whatever reason, were not sales tax compliant. In exchange for limiting the amount of past due sales tax, penalties, and interest the seller had to pay, the state would get the seller registered to collect sales tax going forward.
But this amnesty is a little different. A government organization, the Multistate Tax Commission, worked with 23 states and Washington, D.C., to offer a massive sales tax amnesty to online marketplace sellers.
It was clear that online sellers who use marketplaces like Amazon FBA were unclear that they even had to collect sales tax. (Read about where to collect sales tax as an Amazon FBA seller here.) So rather than penalizing these business owners, this collection of states is offering a total sales tax amnesty. (With a couple of exceptions, listed below.)
Sellers can apply for amnesty between August 17, 2017, and October 17, 2017.
Fill out an application at MTC.gov’s amnesty website. You cannot take advantage of the amnesty by registering with individual states, and you must go through MTC.gov’s application process.
Check out our Sales Tax Amnesty Q&A. We give tips on whether the sales tax amnesty is right for your business.
I hope this post has helped you assess your options regarding the ongoing sales tax amnesty. If you have questions or comments, I’ve added a couple of resources below!