AICPA Comments on MFA of 2013

From the Desk of Michael Zaldivar, CPA, CMI ~

On September 10, 2013, the American Institute of Certified Public Accountants (AICPA) submitted comments to Congress in a 13 page document addressing concerns about the Marketplace Fairness Act (MFA).  The comments were submitted directly to:

The Honorable Max Baucus
The Honorable Dave Camp
The Honorable Orrin G. Hatch
The Honorable Sander M. Levin
The Honorable Bob Goodlatte
The Honorable Patrick J. Leahy
The Honorable John Conyers, Jr.
The Honorable Chuck Grassley

According to the document, the AICPA is not taking a position supporting or opposing the proposed MFA, however, it has taken the time to set forth recommendations in an effort to simplify and streamline sales and use tax compliance and administration across interstate borders.  In summary, the AICPA recommends that Congress modify the proposed legislation by:

  • Substantially increase the existing small business exemption in the MFA and provide an additional state-level de minimis exemption;
  • Allow remote sellers filing flexibility (i.e., temporary option of manual or
    electronic);
  • Provide remote sellers stronger “hold harmless” penalty provisions and consider the appropriateness of amnesty for pre-MFA periods;
  • Provide remote sellers a temporary special vendor compensation provision in
    addition to vendor compensation paid to all sellers required to collect and remit to the state; and
  • Mandate more simplification (including the same filing option rules) in sales and use tax laws for all sales in, and shipped into, a state applicable to all businesses (both remote and in-state sellers) subject to collection and remittance obligations and provide greater clarity on taxable services and products.

The recommendations are another step in what appears to be a long journey on the road to state and local tax uniformity across the United States.

For a more detailed review of the AICPA document click below.

AICPA Statement on MFA September 10, 2013

ZSA SR – MFA 7 Principles – Goodlatte

SALT Report 2549 – Small Business Coalition Opposes Marketplace Fairness Act

SALT Report 2526 – Marketplace Fairness Act, What’s Next?