Tax Amnesty Program for Amazon FBA Sellers

Last Updated on October 13, 2017

IMPORTANT UPDATE:   At the October 11, 2017 meeting, the nexus committee extended the application deadline to November 1, 2017. 

Currently, States are looking to go after the individual sellers on marketplaces, such as Amazon. Currently, the Multistate Tax Commission has a tax amnesty program for FBA marketplace sellers running from August 17 through October 17. As provided in the Multistate Voluntary Disclosure, a taxpayer can apply to a state for voluntary disclosure anonymously and will not be required to disclose its identity to the state until the taxpayer registers with the state and the voluntary disclosure agreement is executed. The Multistate Tax Commission has approved this program to help sellers become sales tax compliant, while removing fines and penalties that normally would be associated with failing to collect sales tax. Currently, the following states are participating in the Amnesty: Alabama, Arkansas, Colorado, Connecticut, District of Columbia, Florida, Idaho, Iowa, Kansas, Kentucky, Louisiana, Massachusetts, Missouri, Minnesota, Nebraska, New Jersey, North Carolina, Oklahoma, Rhode Island, South Dakota, Texas, Tennessee, Utah, Vermont, and Wisconsin. Participation in the Voluntary Disclosure Program will lead a liability to register and begin collecting sales tax in all states you disclose by Dec 1, 2017. Eligibility requirements are generally simple and if you have nexus it may be a beneficial to take advantage of the program. However, you are not eligible to participate in the program if you have been previously contacted about sales tax by a state. This can be as simple as receiving a nexus questionnaire from them, as you are now on their radar.

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