Nebraska Announces Temporary Penalty and Interest Relief for Certain Remote Sellers and Marketplace Facilitators

The Nebraska Department of Revenue (DOR) has issued a General Information Letter (GIL) stating that the Nebraska Tax Commissioner will grant a temporary penalty and interest waiver to certain remote sellers and Multivendor Marketplace Platforms (MMP) that were required to but have not yet complied with the state’s economic and marketplace nexus legislation that went into effect on April 1, 2019. The DOR acknowledges that remote sellers and MMPs may have had difficulty complying with the new legislation in a timely manner. The GIL states that the temporary penalty and interest waiver applies to remote sellers and MMPs:

• That were not engaged in business prior to April 1, 2019;
• Met one of the economic nexus thresholds ($100,000 or 200 or more separate transactions) during 2018 or 2019; and
• Have not yet complied with the requirements of the economic and marketplace nexus legislation (L.B. 284)

The penalty and interest relief does not apply to sellers who are physically present in Nebraska.

To qualify for the temporary penalty and interest waiver, the remote seller or MMP must, by January 20, 2020:

• Obtain a sales tax permit;
• Report and remit all sales tax and local sales tax due since April 1, 2019; and
• Submit a Request for Abatement of Penalty, Form 21 and a Request for Abatement of Interest, Form 21A with a reference to the GIL written across the top of both forms.

Remote sellers and MMPs failing to meet the deadline will be assessed penalties and interest for all periods dating back to and including April 1, 2019. Remote sellers and MMPs that are eligible for this relief but have already obtained a sales tax permit and paid penalty and interest for late periods since April 1, 2019 are also eligible for this relief if they comply with the above requirements.

If a remote seller is unsure if they were engaged in business prior to the enactment of L.B. 284, they may contact the Nebraska DOR at (402) 471-5418 to determine if they are eligible for the relief provided by the GIL or by a Voluntary Disclosure Agreement. (GIL 1-19-2 Sales and Use Tax: Temporary Penalty and Interest Relief for Certain Remote Sellers and Marketplace Facilitators, Nebraska Department of Revenue)