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I’ll Buy That! Sales Taxes and Marketplace Facilitator Laws

August 04, 2021 (3 min read)

 A marketplace facilitator is a business or organization that contracts with third-party sellers of goods and services on its platform to facilitate retail sales. Well-known marketplace facilitators, like eBay and Amazon, enable sales by subscribers by listing products, taking payments, collecting receipts, and occasionally assisting with shipment. Marketplace facilitator laws spurred from the concept that a state could collect more sales tax from fewer entities. Before the Wayfair decision, many retailers (and consumers) escaped the reach of many state sales tax laws. Now with all states with sales and use taxes having implemented the new nexus considerations after Wayfair, the most important practical consideration for your clients is to determine at what level the collection and remittance obligations arise. See South Dakota v. Wayfair, Inc., 138 S. Ct. 2080 (2018).

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Practical Guidance Updates

Featuring the latest updates from your Practical Guidance account.  

  • Tax Key Legal Developments Tracker (Federal)
    Stay informed on new developments.
    • Compensation/Employee Benefits/Payroll
      • The IRS updates the comprehensive system of correction programs under the Employee Plans Compliance Resolution System (EPCRS), for sponsors of retirement plans that are intended to satisfy the requirements of R.C. §§ 401(a), 403(a), 403(b), 408(k), or 408(p), but that have not met these requirements for a period of time. Use of the EPCRS’ voluntary and self-correction programs generally avoids the more costly consequences of having those violations discovered during an IRS audit. Revenue Procedure 2021-30.
      • The IRS reiterates its position that taxpayers using flexible spending account (FSA) health cards to pay qualifying medical expenses must provide the required substantiation, except for qualifying expenses from certain providers (e.g., pharmacies) that can be auto-substantiated by satisfying Prop. Treas. Reg. § 1.125-6 (72 Fed. Reg. 43938 (Aug. 6, 2007)) requirements. IRS Information Letter 2021-13.
      • The IRS provides additional guidance on the application of Section 9501 of the American Rescue Plan Act of 2021, L. No. 117-2, relating to temporary premium assistance for COBRA continuation coverage. I.R.S. Notice 2021-46. This guidance supplements earlier IRS guidance issued under I.R.S. Notice 2021-31 and by the Department of Labor in DOL, COBRAPremium Subsidy.
    • International Tax: The IRS issues Practice Unit on Global Intangible Low-Taxed Income. INT-C-236.


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