There has been a fair amount of reporting about the Internet Tax otherwise known as the Marketplace Fairness Act of 2013. Some of the reporting speculates that small sellers and small businesses would be unduly prejudiced by having to collect sales tax for the thousands of sales tax jurisdictions in the United States. Without the resources a large retailer, it is near impossible for a small business to keep track of all the taxes thereby giving the large businesses a distinct advantage. Yet, a closer reading of the proposal working its way through the Senate reveals two little talked about provisions which, if they survive into the final Act presented to the President for signature provide some relief to this tax collecting burden.
The first little talked about provision requires “Minimum Simplification” of the administration of audits and collection and “streamlined filing”.
The second little talked about provision provides a “Small Seller Exemption” for businesses whose annual online sales do not exceed $1,000,000.00.
It will be interesting to see if these two provisions find their way into the final Act thereby offsetting some of the disadvantageous disparity between large businesses and small businesses.
Horowitz Law Offices represents clients in Illinois Sales Tax, Illinois Use Tax, Illinois Motor Fuel Tax and other Illinois Department of Revenue Matters. Please contact us for more information.