Taxes collected under this rule would be assigned to states in proportion to revenues reported for sales with a known destination. Reliance on information received . According to the Report, the Project discussed whether a vendor that obtains information from a customer should be able to rely on that information. No recommendations were offered in this regard, though the Report describes a variety of safe harbors that could be used. The biggest issue in sales and use tax for multistate sellers is the difficulty of tax compliance.
Compliance is particularly difficult in e-commerce, where every seller is a multistate vendor.
The Report examined three different ways in which tax compliance could be made simpler for multistate sellers Base-state tax compliance, where the vendor would file only in one state. Simplifying the current system. Under a base-state system, a multistate vendor would deal with only one state on such matters as registration, tax returns, tax remittance, and audit. The base state would be responsible for transferring remittances to the states where sales are sourced. In addition, the base state would act on behalf of other states in auditing vendors.