Sellers May Be Contacted About Other Taxes Under New Streamlined Sales Tax Governing Board Rule

The Streamlined Sales Tax Governing Board (the Board) has adopted new rule 401.2 related to a seller’s registration and informing sellers of other possible taxes they may owe in Streamlined Sales Tax Project (SSTP) member states based on information provided by the sellers.

The Board may provide information about taxes other than sales tax to sellers registered through the centralized Streamlined Sales Tax Registration System (SSTRS). The new rule allows SSTP member states to use the data a seller reports on sales and use tax returns as a basis to contact and educate the seller about other possible taxes the seller may be subject to.

Under the rule, if a member state contacts a seller about other taxes it may owe, the state must first work with a seller to determine if those taxes are due and owing before issuing any kind of notice, such as an amount due. However, if the seller does not respond timely to the state’s inquiry, the state may make its determination/assessment based on the information available in the seller’s sales and use tax returns. (Rule 401.2. Registration. Contacting Sellers Regarding Other Taxes, Streamlined Sales Tax Governing Board)

Posted on January 14, 2020