Taxpayers who register to file sales/use tax returns under the Streamlined Sales Tax Project are granted full amnesty which includes forgiveness of all open sales and seller’s use tax, interest, and penalties for prior period sales/use tax liabilities by member states, but taxpayers are cautioned that the amnesty deadline varies by state. It is important to note that the amnesty does not apply to consumer’s use tax or any other taxes such as income, franchise, payroll, property or other excise taxes. The amnesty also does not cover any collected, but un-remitted taxes.
Amnesty is available in all states participating as full members or associate members of the Streamlined Sales and Use Tax Agreement (the “Agreement”). States will provide amnesty for uncollected or unpaid sales or use taxes to a seller who registers to pay or collect and remit taxes on sales made to purchasers in the state. The amnesty period, however, ends 12 months from the date the state becomes a full member of the Agreement.
As of October 1, 2005, there were 13 full member states: Indiana, Iowa, Kansas, Kentucky, Michigan, Minnesota, Nebraska, New Jersey, North Carolina, North Dakota, Oklahoma, South Dakota, and West Virginia. Therefore, the amnesty deadline for these states ended September 30, 2006. For associate member states, the amnesty period begins on the date the state becomes an associate member and ends 12 months after the date they become full members. Thus, the amnesty period for associate member states will vary in length of time; however it will be longer than 12 months as taxpayers can also obtain amnesty during the period they are classified as an associate member state. Associate member states are Arkansas, Ohio, Tennessee, Utah, and Wyoming. For further information on background and how to obtain amnesty through the registration process, go to: http://www.streamlinedsalestax.org/amnesty.html.