Disclosure to the California Department of Tax and Fee Administration


#1

Picked this headline on purpose, so that google searched will lead people here.
Just got this one right now from Amazon. email content:

" Amazon has received a valid and binding legal demand from the California Department of Tax and Fee Administration (CDTFA) requiring that Amazon disclose the following information about your business in 2017:
• Contact information (name, address, and email)
• US Taxpayer Identification Number

To comply with our obligations under the law, we plan to provide this information to the CDTFA by November 6, 2018. In many cases, sellers who register and file taxes in California already provide information on their Amazon business as part of their tax filings. Because each seller’s business and tax needs are unique, we encourage you to consult with a tax advisor to answer any questions you may have.

You also may refer to the following resources in Seller Central:
• Solution Provider Network, a directory with information about several tax advisors: https://sellercentral.amazon.com/gp/help/external/G201687890.
• Tax calculation services, optional services for calculating U.S. sales and use taxes: https://sellercentral.amazon.com/gp/help/G200787660.

Thank you for selling on Amazon,

Amazon Services "

How fantastic is that? I’m located outside of CA by the way.
The leeches are coming!


#2

Similar thread:


Disclosure to California
#3

Yep, I got one too…

But how valid will it be if the Supreme Court didn’t make a decision until THIS year?


#4

Yep, I just got one, too. I no longer sell FBA, but I did in 2017. I did, however, pay sales tax on all my California sales. But do I understand they wanted me to pay sales tax on any sales that were made and shipped FROM the California FBA warehouse to anywhere? Or just to California residents? I did pay sales tax on any sale made to any California resident.


#5

Thank you Supreme Court! As a Californian, I expect all states to do the same to me soon. I wish Congress would fix this.


#6

Count me in. I received this as well. Nothing is certain except death and taxes.

The main thing that sucks is that since Amazon appears to not charge sales tax on our behalf, we’re faced with the tedium of reporting the sales tax for each state separately, and it means that different customers are essentially receiving different discounts (since the tax is included in the price and sales tax is different in each state).

What providers are you guys using to help streamline sales tax payment?


#7

I received as well. I am not located in CA, don’t ship to Distribution centers located in CA. Obviously, they are looking at ALL FBA sellers and will likely send a letter requesting a “Nexus questionairre”. Then, we will all have to decide whether to

  1. Disregard the notice
  2. Fill out the information and send the notice in to CA
  3. Hire someone to tell us how to fill out the information and send it in to CA.

There are companies that handle this, but I just don’t know how CA can say that an out of state seller that does not ship to CA distribution centers has a NEXUS in CA? Everything you read says “Contact a Tax expert”. Great, that costs $. Fill out the form yourself - That, I guess, is a risk.

My question is has someone been SENT A LETTER from CA, Filled out the questionairre and NOT been contacted by CA to go any further? Not been forced to send in Sales Taxes? That would be useful information. “Tax experts” want to treat every case as if it’s unique to charge you to help you. This should be a very simple thing - you have a presence in CA or you don’t. If they want to follow the SCOTUS decision overturning Quill, then CA has to do some changing, so it’s not about that just yet. It’s now about CA trying to get more of us to collect and pay them tax. Whining about it doesn’t help. Getting a post on this thread explaining how to fill out the forms they send you will help…


#8

I rarely ship things to California warehouses but I’d imagine amazon moves a lot of stuff from my original fba warehouse to California ones. Based on population


#9

Yes, very likely.


#10

A nexus is no longer necessary. And it need not be only FBA sellers.


#11

For me the bigger question is, how can they even attempt to collect tax on sales made before Wayfair? Quill was still the law of the land prior to June 2018, Sales since then might be fair game, but the only reason that I can see them needing 2017 info is so that they can see whom they should pursue in 2018
We purposely refuse to ship anything to any warehouse in California, and this is the reason why. No reason to give them any cause to come after us.


#12

If you’re using FBA your products will still end up in CA warehouses whether you ship them there or not.


#13

So glad we never did FBA…Yikes. Big government coming to crush small business.


#14

California is a STATE unto itself…Dollars and cents…I think I will modify my seller account ( If my Legal Dept states authorization ) noting that I can no longer accept any purchase from California Customers…Or…Maybe I will close my AMAZON SELLER ACCOUNT Leeches are coming out of the wood work!!!,BEWARE!!!..The cost to operate a SMALL BUSINESS HAS reached it’s limits.


#15

Taxjar.


#16

Just signed up for the trial.


#17

Probably true.
However, one can definitely make the case that since you didn’t send anything there, and you have no control over what Amazon does after they receive the product, you can’t be considered to have a nexus there. Intent is often a large factor in the law


#18

Be warned that once you file with Ca, they will likely come after you for Ca income tax as well. Once they have their hand in your pocket, what would stop them from digging deeper, and deeper? Best of all for them, you don’t get to vote them out of office.


#19

That is probably unconstitutional without physical nexus. In any case, you can’t be taxed on the same income in different states. The excuse that is used for the new sales tax requirement is that the seller is only collecting the tax, not paying it. The Supreme Court bought this nonsense and the states are piling on because it is free money, resident merchants are not affected and non-resident merchants don’t vote.


#20

1: “We don’t ship, mail, or forward any products into the State of California.”

2: Any order’(s) shall be shipped on the following business day, Monday through Friday till 12:noon

3: We only ship our product by USPS, United States Postal Sevice.

4: All orders are carefully wrapped and packaged for a Safe transit to your location