Streamlined Sales Tax Project & Amnesty

FOR ASSISTANCE CONTACT Henry, Jon or Daniel @ 416.481.0718

         
There are numerous state sales and use tax issues and concerns that confront Canadian businesses that have expanded operations into the US market. These items can quickly escalate into serious issues for a company and even threaten economic volatility.

It is therefore imperative for companies to understand and ensure compliance with state sales tax laws, collections, filings, remittance, exemption qualifications and requirements. Even companies who for years presumed and understood that they were exempt have been alarmingly awakened by tax assessments asserting otherwise.

For companies seeking to become compliant, not only on a go-forward basis, but in a manner that addresses ignored historical requirements and minimizes liability exposure & penalization for voluntary disclosure, the Streamlined Sales Tax Project may be the perfect route to take.

While the program’s objective is to simplify and modernize sales and use tax collection and administration in the US, certain participating states under certain circumstances also offer amnesty "from 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 that state" – i.e., a clean slate of audit.

There are 44 participating states including Washington, D.C.

There are 15 full member states:

There are 6 associate member states: Arkansas, Nevada, Ohio, Tennessee, Utah and Wyoming.

The Streamlined Sales Tax Project is setting up a system by which Internet e-commerce companies can voluntarily pay state taxes to the states in which their customers reside. Member states will offer advantages to those sellers who use a certified service provider.