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Indiana, Iowa, Kansas, Kentucky, Michigan, Minnesota, Nebraska, New Jersey, North Carolina, North Dakota, Oklahoma, South Dakota, or West Virginia
SSTP Sales Tax Amnesty Deadline: September 30, 2006
Who Does Amnesty Cover?
Any company who has
not registered or collected/remitted sales tax in the following
states: Indiana, Iowa, Kansas, Kentucky, Michigan, Minnesota,
Nebraska, New Jersey, North Carolina, North Dakota, Oklahoma,
South Dakota, or West Virginia.
Who Is NOT Covered?
Companies who are
already registered in the member states. See more details
below.
What is the Benefit?
Amnesty for all
sales and use taxes owed regardless of length of time conducting
business in Full-Member States with no look-back period, no
penalty, and no interest.
Conditions.
Company must
register and begin paying taxes in all Full-Member states by
deadline posted above.
Full Story
Background
Amnesty is
available in all states participating as full members or
associate members of the Streamlined Sales and Use Tax
Agreement. Full and associate member states will provide amnesty
for uncollected or unpaid sales or use taxes to a seller who
registers to pay or collect and remit applicable sales or use
taxes on sales made to purchasers in the state.
The amnesty will preclude assessment for uncollected or unpaid
sales or use taxes together with interest or penalty for sales
made during the period the seller was not registered in the
state, provided registration occurs within 12 months of the
effective date of the state's participation in the Agreement.
The amnesty will be granted regardless of “nexus” of the seller
if all other requirements are met.
Amnesty is not available for sales and use taxes already paid or
remitted to a state or to taxes collected by a seller. Amnesty
is applicable only to sales or use taxes due from a seller in
its capacity as a seller and not to sales or use taxes due from
a seller in its capacity as a purchaser. No amnesty is available
under the Streamlined Sales and Use Tax Agreement for taxes
other than sales or use taxes.
A member state may allow amnesty on terms and conditions more
favorable to a seller than is required by the Streamlined Sales
and Use Tax Agreement.
To obtain amnesty, the seller must agree to register in all full
member states of the Streamlined Sales and Use Tax Agreement if
not currently registered. This includes registration in full
member states joining the Agreement after the seller's
registration. The seller may elect to register in associate
member states. The seller is not eligible for amnesty in a
member state if the seller:
• Was registered in the member state for the 12 month period preceding the effective date of the state's participation in the Streamlined Sales and Use Tax Agreement; or
• Has received notice of an audit by the member state and the audit is not yet fully resolved, including any related administrative and judicial processes.
Eligibility for Amnesty
A seller who is not currently registered to collect sales and
use taxes in a member state and who agrees to collect or pay
sales or use taxes for all taxable sales into all full member
states (including states that join the Streamlined Sales and Use
Tax Agreement after the seller's registration) is eligible for
amnesty.
Amnesty is fully effective, absent the seller's fraud or
misrepresentation of a material fact, as long as the seller
continues registration and continues payment or collection and
remittance of applicable sales or use taxes for a period of at
least 36 months. Each member state will toll its statute of
limitations applicable to asserting a tax liability during this
36-month period.
Who is not eligible for amnesty?
A seller is not eligible for amnesty in a member state if the
seller is currently registered or was registered in that state
within 12 months of the date the state became a member state. A
seller is not eligible for amnesty if that seller has received
notice of an audit by the member state and the audit is not
fully resolved, including any related administrative and
judicial processes.
States Offering
Amnesty
A full member state is a state that is in
compliance with the Streamlined Sales and Use Tax Agreement
through its laws, rules, regulations, and policies. As of
October 1, 2005, the full member states offering amnesty through
September 30, 2006 are: Indiana, Iowa, Kansas, Kentucky,
Michigan, Minnesota, Nebraska, New Jersey, North Carolina, North
Dakota, Oklahoma, South Dakota, and West Virginia.
An associate member state is either (a) a state that is in compliance with the Streamlined Sales and Use Tax Agreement except that its laws, rules, regulations and policies to bring the state into compliance are not in effect but are scheduled to take effect on or before January 1, 2008, or (b) a state that has achieved substantial compliance with the terms of the Streamlined Sales and Use Tax Agreement taken as a whole, but not necessarily each provision, and there is an expectation that the state will achieve compliance by January 1, 2008. Associate member states offering amnesty until 12 months after the date they become full members are: Arkansas, Ohio, Tennessee, Utah, and Wyoming.
Period of Amnesty
For full member states, the amnesty period begins on the date
the state becomes a full member in the Streamlined Sales and Use
Tax Agreement. The amnesty period ends 12 months from the date
the state becomes a full member. For the states that become full
members on October 1, 2005, the amnesty period ends on September
30, 2006.
For associate member states, the amnesty period begins on the date the state becomes an associate member in the Streamlined Sales and Use Tax Agreement. The amnesty period ends 12 months from the date the state becomes a full member of the Agreement. Thus, the amnesty period for associate member states will vary in length of time but be longer than 12 months.
Amnesty is fully effective even if there is an ownership change in the seller, provided the seller continues to pay or collect and remit applicable sales or use taxes for the required period.
How to Register
To register to collect taxes for the member states (and obtain
amnesty), go to
www.StreamlinedSalesTax.org or contact Peisner Johnson &
Company at 1-800-940-9433 or send a request to asktheexpert@peisnerjohnson.com.
You will receive a response from each state in which you
register.
Information obtained
through the Streamlined Sales and Use Tax Central Registration
System may not be and will not be used by the member states for
determining nexus for other taxes. Also, registration
information may not be and will not be shared with non-member
states or associate member states for which you elect not to
collect.
www.streamlinedsalestax.org
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