Tax Amnesty / Resolution Initiatives North Carolina: New sales tax 'Internet Transactions Resolution Program' for remote sellers

Internet Transactions Resolution Program, N.C. Dept. of Rev. (4/10). The department has announced that it is collaborating with e-commerce retailers that have operated affiliate programs in North Carolina to "resolve issues of tax liability and to promote equal treatment of all businesses in the State." An "Internet Transactions Resolution Program" is the result of cooperative discussions between the department and a number of e-commerce retailers. Any retailer that failed to register for state sales/use tax as a result of operating an "affiliate program" in North Carolina at any time is eligible to participate in this program.

Eligible participants may resolve their prior tax liability by registering for state sales and use tax and agreeing to collect and remit those taxes for four years, beginning September 1, 2010. In return, the department will agree:

- Not to assess tax, penalties or interest for periods prior to September 1, 2010, and
- Not to exercise its authority to obtain consumer information from the retailer to collect a tax liability for the period prior to September 1, 2010.

This program will begin on April 23, 2010, and eligible retailers must submit an election to participate in the program by June 30, 2010. A resolution agreement must be signed by both the retailer and department by August 31, 2010. For retailers that fail to participate and are subject to these sales tax nexus filing requirements, the department will assess all applicable tax, penalties and interest – applicable penalties will not be waived.

North Carolina Department of Revenue notes that there is no statute of limitations for sales tax liability if a retailer has never registered and filed North Carolina sales tax returns.