Amnesty
(Amnesty Under the Streamlined System)
ATTENTION RETAILERS!
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Do you make sales into states without collecting those states' sales tax? |
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Do you make deliveries to those states in your own trucks? |
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Do you send repair or maintenance employees or representatives into various states to perform work on your behalf? |
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Do you sell items through a Web site or catalog and then accept returns at an in-state store facility? |
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Do you market products jointly with an affiliate that sells through catalogs or the Internet? |
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Do you use in-state solicitors, whether employees, agents, or independent contractors, to make sales into a state? |
If you answered “YES” to any of these questions, or if you are ready to take the guesswork out of your “nexus status” and want to sign up for a simplified sales tax collection process, you should take advantage of an amnesty program that is available in states participating as full or associate members of the Streamlined Sales and Use Tax Agreement.
Please note: Nebraska's amnesty for Model 1 and Model 2 sellers terminated on July 31, 2007. Amnesty continues to be available in other states as they become eligible to participate in the Agreement.
What amnesty is available?
Amnesty is available for uncollected sales taxes on sales by Model 1 and Model 2 sellers for any period prior to registration through the Streamlined Sales and Use Tax Central Registration System.
Who are the Streamlined member states?
Full member states are: Arkansas, Indiana, Iowa, Kansas, Kentucky, Michigan, Minnesota, Nebraska, New Jersey, North Carolina, North Dakota, Oklahoma, Rhode Island, South Dakota, Vermont, Washington, and West Virginia
Associate member states are: Nevada, Ohio, Tennessee, Utah, and Wyoming.
Who is eligible for amnesty?
All sellers, regardless of their nexus status, can choose to pay or to collect and remit sales and use taxes in the member states by registering through the Streamlined Sales and Use Tax Registration System.
Who is not eligible for amnesty?
A seller is not eligible for amnesty in a member state if:
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The seller is currently registered in the member state to collect sales tax;
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The seller had been registered to collect sales tax in the member state within 12 months of the state becoming a full or associate member state; or
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The seller 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.
How long is a seller eligible for amnesty?
Sellers who register through the Streamlined Central Registration System are eligible for amnesty for 12 months following the effective date of the state's participation in the Agreement.
What is excluded from the amnesty?
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Sales or use taxes owed by the seller in its capacity as a purchaser;
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Sales or use taxes already paid or remitted to member states in which the seller was registered;
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Sales or use taxes collected by the seller that are unpaid to member states;
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Liability for taxes other than sales or use taxes - INFORMATION OBTAINED THROUGH THE STREAMLINED REGISTRATION SYSTEM WILL NOT BE USED BY THE MEMBER STATES FOR DETERMINING NEXUS FOR OTHER TAX PROGRAMS.
How does a seller register?
Sellers can register to collect taxes for the member states in which the seller makes sales by visiting the Streamlined Sales and Use Tax Central Registration System and following the instructions provided.
How long must a seller remain registered to collect sales tax in a member state?
The amnesty provision of the Streamlined Sales and Use Tax Agreement requires that sellers must maintain their registration in a member state and continue to collect and remit applicable sales and use taxes for at least 36 months after the date of the registration through the Streamlined Sales and Use Tax Central Registration System.
Can the amnesty be voided?
If a registration is not maintained for the required 36 months or if a seller is found to have committed fraud or intentional misrepresentation in the registration, the amnesty may be voided by the member state.
What if I owe money to Nebraska in a tax program other than sales tax?
If you have not filed returns or have underreported liabilities in a tax program, other than sales tax, administered by the Nebraska Department of Revenue, you may be eligible for a Voluntary Disclosure Agreement. An Information Guide describing the Voluntary Disclosure Agreement may be found by clicking here.
What if I owe money to Nebraska but I do not qualify for amnesty under the Streamlined Agreement?
If you do not qualify for amnesty for sales tax and have not filed returns or have underreported sales tax liabilities, you may be eligible for a Voluntary Disclosure Agreement. An Information Guide describing the Voluntary Disclosure Agreement may be found by clicking here.