Multistate Tax Commission Online Marketplace Seller Voluntary Disclosure Initiative

We are participating in the Multistate Tax Commission (MTC) Online Marketplace Seller Voluntary Disclosure Initiative, which is designed to bring into compliance out-of-state taxpayers who sell products in Texas and other states through online marketplaces.

This program is open Aug. 17 – Nov. 1, 2017. Taxpayers must make their requests for agreements through the MTC. Those who qualify must register and start collecting tax by Dec. 1, 2017, or not later than 30 days after the taxpayer has received notice that the state has signed the voluntary disclosure agreement, whichever date is later. The program covers Texas sales and use and franchise taxes.

Agreements are available to taxpayers who represent they do not have any nexus-creating contacts in Texas except for having inventory in an online marketplace provider’s fulfillment centers or having other nexus-creating activities through a marketplace provider on behalf of a marketplace seller, such as handling customer service calls. Taxpayers with nexus for any other reason are not eligible for agreements.

In addition, taxpayers who have already been contacted by our agency about their tax responsibilities, including contact about a routine audit, will not qualify. The agreements also do not waive any taxes collected but not remitted.

More information about applying for the program is available on the MTC website. You can also contact Rusty Johnson, Manager of our Business Activity Research Team, with questions at rusty.johnson@cpa.texas.gov or 512-463-2501.