Simplify Your Amnesty VDA Options
We have received a lot of emails with great questions about the MTC’s Amnesty program, including:
1. Do I qualify for Amnesty?
2. If I don’t qualify, what are my options?
3. What about the FBA states NOT covered by Amnesty? What do I do?
We created this outline, which will simplify your options for you. Keep in mind. You first need to know which states you have stock, which creates nexus. If you have no stock yet in some of the FBA states, you will apply for permits at a future date.
11 FBA Amnesty States
Colorado | Connecticut | Florida | Kansas | Kentucky | Massachusetts | Minnesota | Minnesota | North Carolina | New Jersey | Tennessee | Texas | Wisconsin
FBA Amnesty states over $400 in sales tax liability file Amnesty VDA which is $397* and includes our $75 permit service (state permit fees are separate). This means you would break even with our fee of $397 vs. the amount you would save in past sales tax liability, plus you would not have to file the past sales tax returns, plus save in penalties and interest. The key is to understand when you FIRST had nexus (FBA stock). We recommend pulling a wherestock.com report to determine your locations.
IMPORTANT: Keep in mind, there are important footnotes under the states for CO, MA, MN, and WI that ONLY waive penalties like a traditional VDA (not past sales tax plus interest or IFT).
If you are filing Amnesty on your own and not paying our service fee, you may decide that if you only owe $200 in past sales tax and had nexus for two years in a state (which may require up to 24 sales tax returns or a spreadsheet) to file Amnesty on your own.
On the other hand, if you owed less than $200 in past sales tax and only had nexus for 6 months or less, you may want to move forward and apply for a sales tax permit and past the past sales tax, plus penalties, interest, and returns.
14 FBA Non-Amnesty States
Arizona | California | Georgia | Illinois | Indiana | Maryland | Michigan*** | Nevada | North Carolina |Ohio | Pennsylvania | South Carolina | Virginia | Washington
These states are NOT part of the Amnesty program, so you will either apply for a sales tax permit and pay the past sales tax, penalties, interest, and past returns OR file for a VDA (Voluntary Disclosure Agreement) to waive past penalties.
FBA Non-Amnesty States over $1K in sales tax liability consider filing a VDA (we would refer you to a separate company to receive a quote to file the VDA, fees starting at $500 per state) where this VDA would only waive past penalties you would still pay sales tax and interest out of your own pocket.****
FBA Non-Amnesty states under $1K in sales tax liability file for a sales tax permit with our $75 per state service and pays the back sales tax + penalties + interest + past sales tax returns.** (state permit fees are separate).
12 Amnesty Non-FBA States (and D.C.)
Alabama | Arkansas | D.C. | Idaho | Iowa | Louisiana | Missouri | Nebraska | Oklahoma | Rhode Island | South Dakota | Utah | Vermont
You will only need to file Amnesty if you have nexus in these states, typically, another third-party shipping company. If one of these states is your home state, you are not able to file for Amnesty. It is likely that if you sell only on Amazon FBA, you will NOT be filing for Amnesty in any of these states listed above.
Amnesty Non-FBA States over $500 in sales tax liability file Amnesty VDA which is $297* and includes our $75 permit service (state permit fees are separate).
Amnesty Non-FBA States under $500 in sales tax liability file for a sales tax permit with our $75 service and pay the back sales tax + penalties + interest + past sales tax returns.** (state permit fees are separate).
We hope this helps simplify your decision process! And if you need support with Amnesty, here are your options below:
Go here to review our MTC VDA Services: budurl.com/MTCAmnesty.
Go to this link to get join Sales Tax System for 12 months and to start with our MTC VDA Services: Enter the discount code: STSMTCVDA to save $100 per state, which now expires on October 20th (service includes our fee to apply for a sales tax permit). State fees for permits are separate.
*Includes a $100 discount per state expires October 20th for Sales Tax System Members Only. Join here.
**Filing past sales tax returns. Your filing frequency, monthly or quarterly, is most common is based on your total sales tax due in most states, and the other is based upon total sales. If you need a resource for filing past sales tax returns, we have one that charges $39 per return. Behind four quarters, 4 x $39= $156.00 per state.
*** Michigan is not currently FBA, but they have Amazon lockers that create nexus (the only state to rule this way for Amazon lockers).
****Filing past sales tax returns with a VDA. States have different rules, and some require past returns to be filed. Some will accept a spreadsheet will affect your overall VDA quote.