North Carolina Tax Amnesty: Sales and Use Tax "Internet Transactions Resolution Program"

The North Carolina Department of Revenue announced recently the "Internet Transactions Resolution Program" designed for remote sellers affected by the remote seller nexus law enacted by the State in August 2009. Under the terms of the Program, as applied to eligible participating retailers, the Department will agree not to assess sales and use tax, franchise tax, penalties, and interest due prior to September 1, 2010. Also, the Department will agree not to exercise its authority to obtain consumer information from retailers to collect tax liabilities for periods prior to September 1, 2010.

To participate in the Program, eligible retailers must submit an election form to the Department no later than June 30, 2010. Any retailer that failed to register for sales and use tax as a result of having operated an affiliate program in North Carolina at any time is eligible to participate in the Program.

This Multistate Tax Alert reviews briefly the remote seller nexus law and then summarizes the general requirements of the Program.