14 Feb P.L. 86-272 Update
As the CEO of Ampersand accounting, I wanted to update you with breaking information about events happening that impact your business, your revenue, and your livelihood.
It is important, that as an eCommerce business owner, you are aware of what is taking place at this time.
On February 7 the Multistate Tax Commission (MTC) held a conference call regarding P.L. 86-272.
I was personally on that call and advocated on behalf of our clients and the eCommerce industry as a whole.
I presented our concerns regarding MTC’s interpretation of P.L. 86-272. Ampersand Accounting is providing additional information in writing regarding our position.
I personally intend to follow up with the Commission regarding the information we provide.
P.L. 86-272 is “The Interstate Income Act of 1959,” also known as “Public Law 86-272.” This is a United States (Federal) statute that allows a business to sell into a state without having an income tax liability.
MTC decided to further investigate physical nexus and how it applies to income tax, as well as sales tax.
The MTC (Multistate Tax Commission) is an organization comprised of nonelected state employees who claim, according to their website, to “facilitate proper determination of State and local tax liability of multistate taxpayers, including the equitable apportionment of tax bases and settlement of apportionment disputes.” Forty-seven states are members of the Commission in some capacity.
This committee will advise their respective states on the action to take regarding income tax liability based on internet sales.
Ampersand Accounting will continue to argue that eCommerce retailers are exempt from income tax under P.L. 86-272.
So, what are the next steps?
Ampersand Accounting will closely monitor the actions of states regarding P.L. 86-272.
Ampersand Accounting will provide MTC the information promised to them in the conference call. We will follow up with the Commission requesting they take will take our expert advice and move forward respecting P.L. 86-272 as it is written.
As always, do not hesitate to reach out with questions or concerns.
With very best regards,