A report from Bloomberg BNA says that the Connecticut Department of Revenue Services has requested 3rd party seller information from Amazon.
The news came from Connecticut Revenue Services Commissioner Kevin B. Sullivan and was reported directly to Bloomberg BNA (one of the best sources of sales tax news on the web.) The article does not include many details about the scope of this request or what exact information the state of Connecticut has requested from Amazon, but you can read the full story here.
What Does this Mean for Amazon FBA Sellers?
This is unclear, unless we know more about exactly what information Connecticut was looking for.
Last summer, the state of New York requested information from Amazon about 3rd party sellers. But they were looking for 3rd party sellers who lived in New York and were collecting sales tax. Ostensibly, this was to find 3rd party Amazon who were committing fraud by collecting sales tax from New York state buyers but not remitting it to the state.
In this case, Connecticut could be doing the same thing. That’s the best case scenario.
What else could be going on? Another scenario might be that Connecticut is looking for 3rd party sellers with a home address in Connecticut who are not collecting sales tax from Connecticut buyers. The very worst case scenario is that Connecticut is looking for all sellers who have nexus in Connecticut (through inventory stored in an Amazon fulfillment center) in order to audit non-compliant sellers. That said, it’s completely unclear at present what this move by the Connecticut Department of Revenue Services means for 3rd party Amazon sellers.
What Happens Next?
If the New York case is any indication, when Amazon shares information with the state Department of Revenue, they will send an email out to all affected sellers, just like they did in the New York case. When that happens, we’ll write about it. Stay tuned to the TaxJar blog for more updates as this story breaks.
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