Multi-State – State of Wayfair: Who Could Face Audits?

How have audits changed, post-Wayfair?

The answer supplied by a snap survey of states is that states are more likely to audit the person or entity that is registering, collecting, and remitting taxes on remote sales under the various economic nexus regimes now coming online after the ruling, Richard Cram, director of the national nexus program at the Multistate Tax Commission, said Oct. 10.

“This is an issue where there appears to be a fair amount of consistency,” he said. “Unless the marketplace facilitator can show their failure to collect was premised upon incorrect information provided by a seller,” the facilitator—as the one who processes the sale—is the one the states will audit.

Bloomberg BNA
Daily Tax Report: State
by Ryan Prete
October 10, 2010

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