Multistate Tax Commission's voluntary disclosure program for marketplace sellers

September 6, 2017|Sarah Evans

The Multistate Tax Commission (MTC) voluntary disclosure program allows a full reprieve from tax, interest and penalties for some states. Wisconsin allows taxpayers to go back to January, 1, 2015, rather than their standard four-year look-back.

If you’re an online seller participating in the “Fulfillment by Amazon” program or a similar marketplace arrangement, you likely have nexus as a result of inventory stored in a third-party warehouse or fulfillment center, or through other nexus-creating activities performed by the marketplace provider on your behalf. Now you have a unique opportunity to participate in a voluntary disclosure through the Multistate Tax Commission (MTC).

If you have not yet registered with the state, filed returns with the state, made payments of the applicable tax, or had prior contact with the state for the specific tax, you may be excused from back taxes in exchange for registering to collect and remit state taxes. Depending on the state, the waiver could apply to sales and use tax, as well as income and franchise taxes. The MTC, an intergovernmental tax agency representing a variety of states, is directing the program.

Some states are waiving all back taxes, interest and penalties if you register and start filing prospectively. If you sell through Amazon Fulfillment, consider this opportunity to reduce your exposure and get compliant.

Start date

To participate, the marketplace seller must meet certain eligibility criteria and then apply for voluntary disclosure and register as a seller/retailer between August 17, 2017, and October 17, 2017. As part of the conditions of the program, you must register and pay taxes in the applicable states no later than December 1, 2017. An application to enter the plan is done anonymously.

 There are currently 24 states participating in the plan:
  • Alabama
  • Arkansas
  • Colorado
  • Connecticut
  • District of Columbia
  • Florida
  • Idaho
  • Iowa
  • Kansas
  • Kentucky
  • Louisiana
  • Massachusetts
  • Minnesota
  • Missouri
  • Nebraska
  • New Jersey
  • North Carolina
  • Oklahoma
  • South Dakota
  • Tennessee
  • Texas
  • Utah
  • Vermont
  • Wisconsin

For more information, visit the MTC website or the Wisconsin Department of Revenue website.

Amnesty programs

If you don’t sell through Amazon Fulfillment but still have exposure for other reasons, the following states are offering tax amnesty programs:

  • Ohio
  • Oklahoma
  • Rhode Island
  • Virginia
  • Washington – unclaimed property only

If you have specific questions, please reach out to Sarah Evans, State and Local Tax manager, at or any member of the State and Local Tax Team at 800-236-2246.

Sarah Evans, CPA, has more than 25 years of state and local tax experience. Her experience includes coordination of sales tax audits and reverse audits as well as research, planning and compliance related to sales and use, property, income and franchise taxes.