Close Out Sales Tax Accounts
As an Amazon seller, there were likely many states you have registered over the past few years as you had physical nexus in the state with FBA stock. As you know, 47 states have marketplace facilitator rules where the facilitator is required to collect and remit sales tax on behalf of the seller. The states have not always been evident when you can close out your sales tax account and file a final sales tax return, which saves you money on future sales tax returns if you are using a third-party provider.
Some states wanted you to stay registered, even though Amazon was not collecting and remitting sales tax. Others said if you did not have any non-marketplace sales, it would be ok to close your tax account.
Two Options to Closeout Your State Sales Tax Accounts
- One is to go to each state’s department of revenue website to learn the steps and call the state or any clarifications, which may involve several calls while being on hold often, or
- The second option is our new service, where we will close out your tax account for you.
Closeout Sales Tax Accounts Services
Our comprehensive service includes:
- A map of the states to close out your sales tax permits as a marketplace seller. As a sales tax system member, we provide that upfront to you. For example, as an Amazon FBA seller, there are several states that you may close out your tax accounts, and in other states, you need to stay registered if you had prior nexus.
- Call the state to find out the details required to close out your sales tax account. This may include what past returns are due, how many, due dates, and our steps to close your tax account.
- Prepare an email summary of the steps to close out your account, including the list of returns required to be filed first, if required.
- Closeout your tax accounts.
- Provide you a checklist of your next steps with each state, if required or not.
Estimated time frame: Varies depending upon if all sales tax returns have been filed or not, on average, 3-6 weeks.
Our new fee per state for our comprehensive service is $175* per state.
As a marketplace seller only (Amazon, Walmart, eBay), in the states where the marketplace is collecting and remitting sales tax and registration, is not required, by closing out a previously opened sales tax account will save you money on future sales tax filings.
If you plan to sell on a non-marketplace, such as your website or a Shopify store, you will want to evaluate which states to keep open as you may cross economic nexus thresholds soon. Some states include marketplace sales in regards to economic nexus thresholds, and some do not. We do provide separate strategy calls on this subject. Learn more here.
A part of the process to close out your tax account is to file your final sales tax returns.
Each state varies in its requirements. Some states have trailing nexus and require you to file returns to the end of the year or the following 12 months before your tax account may be closed.
We will inform you of each state’s requirements to file final sales tax returns and resources to get those filed for you if you are not currently working with a software or e-commerce account who will do those filing for you.
Yes. Since our sister brand, NCP, has formed thousands of companies since 1997, we also work with our CPA firms to file final federal and state income tax returns and close out the state’s entities as required.