James Thomson shares insights about the sales tax amnesty program offered by the Multistate Tax Commission, running from August 17 - October 17, 2017. The program waives back sales and income/franchise taxes owed in 24 states. Learn more at http://www.taxify.co/salestaxamnesty

1. MTC Online Marketplace Seller
Voluntary Disclosure Initiative
August 17 – October 17, 2017
James Thomson, PROSPER Show
Webinar discussion, August 15, 2017
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2. What is The Issue Needing To Be Solved?
• Unpaid sales tax liability is #1 liability among FBA sellers
• How big is the problem?
• How does an individual seller address this sales tax liability today?
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3. Which States Are Involved? (20 + DC)
Alabama
Arkansas
Colorado**
Connecticut*
District of Columbia
Florida*
Idaho
Iowa
Kansas*
Kentucky*
*Amazon FBA states
** waiver for sales/use back taxes only
& requires backtax payment to 1/1/15
Louisiana
Missouri
Nebraska
New Jersey*
Oklahoma
South Dakota
Tennessee*
Texas*
Utah
Vermont
Wisconsin* &
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4. What is Being Offered Through This Online
Marketplace Seller Voluntary Disclosure Initiative?
• Under this initiative, when a qualifying taxpayer applies for voluntary disclosure relief, the participating states
will agree to waive sales/use and income/franchise back tax liability, including penalties and interest, for prior
tax periods, without regard to any lookback period*, provided the taxpayer registers as a seller or retailer to
collect, report and remit sales/use tax and commences to file sales/use tax returns and remit sales/use tax as of
the effective date (not later than December 1, 2017) set forth in the voluntary disclosure agreement.
• If the taxpayer is subject to income/franchise tax, the taxpayer must commence filing income/franchise tax
returns and paying tax due, commencing with the tax year that includes the effective date of the voluntary
disclosure agreement (not later than December 1, 2017).
* With the exception of Wisconsin, which will apply a lookback period to January 1, 2015, requiring payment of
back tax liability and interest to that date, and Colorado, which will waive back tax liability for sales/use tax but will
require payment of back income tax liability and interest for its 4-year lookback period.
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5. Who is Eligible for this Initiative? 1/2
1. The taxpayer has not yet registered as a seller or retailer, filed sales/use tax or income/franchise tax returns
with, made payments of such taxes to, or had any other prior contact with the state concerning liability or
potential liability for sales/use taxes or income/franchise taxes.
2. The taxpayer is an online marketplace seller using a marketplace provider/facilitator (such as the Amazon
FBA program or similar platform or program) to facilitate retail sales into the state and has nexus in the state
solely from the online marketplace seller’s inventory stored in a third-party fulfillment center located in the
state or through other nexus-creating activities of the marketplace provider/facilitator on behalf of the online
marketplace seller in the state.
3. The taxpayer has timely applied electronically (using either the online application provided on the MTC
website at www.mtc.gov or MTC pdf application form available on the MTC website and emailed to MTC staff
at email address nexus@mtc.gov) to the state for voluntary disclosure relief through the MTC Multistate
Voluntary Disclosure Program (MVDP), in accordance with the process set forth at
http://www.mtc.gov/Nexus-Program/Multistate-Voluntary-Disclosure-Program.
4. The taxpayer is seeking relief from any past due sales/use tax, including interest and penalties, and if
applicable, income/franchise tax liability, including interest and penalties, in connection with its online retail
sales activity in the state, except for sales/use tax collected but not remitted, with the taxpayer agreeing to
register as a seller or retailer with the state and timely collect, report and remit sales/use tax and file returns
on all taxable retail sales to customers in the state prospectively as of the effective date (not later than
December 1, 2017—taxpayers are encouraged to commence collection and remittance of sales/use tax
prior to that date) of the voluntary disclosure agreement. If subject to income/franchise tax, the taxpayer
further agrees to timely file income/franchise returns and pay such taxes due, commencing with the tax year
including the effective date (not later than December 1, 2017) of the voluntary disclosure agreement. If the
taxpayer has any collected but unremitted sales/use tax, then the taxpayer agrees to remit such tax to the
state, including penalties and interest.
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6. Who is Eligible for this Initiative? 2/2
3. The taxpayer has timely applied electronically (using either the online application provided on the MTC
website at www.mtc.gov or MTC pdf application form available on the MTC website and emailed to MTC staff
at email address nexus@mtc.gov) to the state for voluntary disclosure relief through the MTC Multistate
Voluntary Disclosure Program (MVDP), in accordance with the process set forth at
http://www.mtc.gov/Nexus-Program/Multistate-Voluntary-Disclosure-Program.
4. The taxpayer is seeking relief from any past due sales/use tax, including interest and penalties, and if
applicable, income/franchise tax liability, including interest and penalties, in connection with its online retail
sales activity in the state, except for sales/use tax collected but not remitted, with the taxpayer agreeing to
register as a seller or retailer with the state and timely collect, report and remit sales/use tax and file returns
on all taxable retail sales to customers in the state prospectively as of the effective date (not later than
December 1, 2017—taxpayers are encouraged to commence collection and remittance of sales/use tax
prior to that date) of the voluntary disclosure agreement. If subject to income/franchise tax, the taxpayer
further agrees to timely file income/franchise returns and pay such taxes due, commencing with the tax year
including the effective date (not later than December 1, 2017) of the voluntary disclosure agreement. If the
taxpayer has any collected but unremitted sales/use tax, then the taxpayer agrees to remit such tax to the
state, including penalties and interest.
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7. How To Apply For Relief Under This Initiative
• www.mtc.gov/Nexus-Program/Online-Marketplace-Seller-Initiative
• Apply online or complete the PDF VDP form and email to nexus@mtc.gov
• Indicate for which states you are seeking voluntary disclosure (done at one time with online application, need to
complete separate PDF VDP form for each state)
• MTC will distribute your application information anonymously to specific states to get you into the online
marketplace seller voluntary disclosure initiative - taxpayer can apply 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 taxpayer may choose which state and which tax type (sales/use tax, income/franchise tax or both) to seek
voluntary disclosure relief for. The taxpayer can also withdraw the application for voluntary disclosure with any
state at any time prior to execution of the voluntary disclosure agreement.
• Estimated time to complete processing is 30-60 days
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