After the SD v Wayfair decision on June 21, 2018, internet retailers using Amazon, Ebay, and other online marketplaces should be having trouble sleeping. Not only has the world turned upside down with the removal of protections from Quill (physical presence no longer required), but you now have to worry whether states will apply the Wayfair decision retroactively. After all, Justice Kennedy point blank said that the Quill physical presence requirement was always a wrong interpretation of the constitution. Looking forward, even if a state doesn’t have an “economic nexus” statute on the books, you can wager every state legislature out there is already drafting new laws giving their state maximum reach over internet retailers.
So an internet retailer now has to worry about the aggressive states, like Florida, coming after your company back in time. Or perhaps not, if you act fast. I’ve received word that Florida is unofficially allowing companies whose only contact with Florida is through online marketplaces like Amazon FBA to do a voluntary disclosure and have the past liabilities forgiven. Even if your company stored inventory with Amazon, you still may be forgiven for the past liabilities. Unless we can convenience Congress that we need a federal statute protecting small sellers from sales tax nexus, there is no question that marketplace sellers will have to register and start collecting taxes. If you act quickly, then you can do so while most likely having all past exposure forgiven.
If this is something you are interested in, then please touch base with me. JamesSutton@FloridaSalesTax.com or 813-775-2131. I am a partner in a Florida based law firm that has an almost exclusive focus on sales tax controversy. We can help you get Florida cleaned up and the help you decide the best path to take in other states too. We are here to help.
At the Law Office of Moffa, Sutton, & Donnini, PA, our primary practice area is state and local taxes, with a very heavy emphasis in Florida sales and use tax. We have defended Florida businesses against the Florida Department of Revenue since 1991 and have over 100 years of cumulative sales tax experience within our firm. Our partners are both CPAs/Accountants and Attorneys, so we understand both the accounting side of the situation as well as the legal side. We represent taxpayers and business owners from the entire state of Florida. Call our offices today for a FREE INITIAL CONSULTATION to confidentially discuss how we can help put this nightmare behind you.