I Owe Material Back Taxes
Since the Wayfair decision came into effect in June 2018, E-commerce companies and remote sellers alike have had to juggle the sales tax nightmare. Some states enacted Economic Nexus laws prior to June 2018; many announced similar laws almost right away; and yet others were late to the party.
As such, depending on when you met the Economic Nexus thresholds, you may owe material back taxes where a simple sales tax registration may not suffice. As part of a due diligence exercise (internal audit, acquisition, merger), a VDA or voluntary disclosure agreement may be the only way to truly ensure you are compliant – historically and moving forward. The two primary advantages to performing a VDA are limiting the look-back period to state statute (3 to 4 Years) and abating penalty.
For additional information, please see our VDA FAQ