Yes—but the new Streamlined Sales Tax remote-seller voluntary disclosure program is designed to cover qualifying remote sellers’ past-due sales and use tax, not every seller or every kind of tax debt. This one varies by seller and by state, and it is the kind of detail we check for clients as part of the service — get in touch and we will confirm where you stand. The seller still has to pay the tax due, register, and comply with filing and collection requirements; interest is not stated as waived by the program rules.
Key takeaways
- The new SST program is aimed at qualified remote sellers with economic-nexus sales tax exposure.
- Rather than give you a figure that may not apply to you, we would check this against the state’s current guidance for your specific setup — ask us and we will tell you exactly where you stand.
- Penalties and late-filing fees are eliminated only to the extent state law allows; interest is not stated as waived.
- Participation and eligibility must be checked state by state before applying.
- Review sales records and prior state contacts before disclosing or registering.
What the new multistate disclosure program does
A multistate voluntary disclosure program gives a business a coordinated way to approach multiple state tax authorities about past tax obligations. Instead of contacting each state independently at the outset, the seller submits an application through the program administrator. Each participating state then decides whether the seller qualifies and, if accepted, sets out the terms for disclosure, payment, registration, and future compliance.
The new program is the Streamlined Sales Tax Voluntary Disclosure program for qualified remote sellers. It is intended to help certain sellers that crossed a state’s economic-nexus threshold but did not register and collect sales tax there. It is a sales and use tax program; it should not be assumed to resolve income tax, payroll tax, marketplace-facilitator obligations, or other state liabilities.
It is distinct from the existing Multistate Tax Commission (MTC) voluntary disclosure process, which can address several tax types and has its own eligibility and state-specific terms. A seller should compare the programs before disclosing, because applying through the wrong route or contacting a state first can affect available relief.
Does it cover remote sellers’ back taxes?
Yes, if the seller and the relevant state meet the program’s requirements. The program is aimed at unpaid or uncollected sales and use tax associated with remote sales where the seller’s obligation arose from economic nexus. It offers a limited-lookback route to come forward, report the covered periods, pay the balance due, and begin collecting and remitting tax going forward.
It does not erase the underlying tax. Nor does it automatically cover tax that a seller collected from customers but failed to remit; the program’s rules and state law may treat collected-but-unpaid tax differently. Eligibility is assessed state by state, so acceptance in one state does not establish eligibility in another.
Marketplace sales need careful review. A marketplace may collect and remit tax on some transactions, while the seller may still have obligations for direct sales, other channels, or particular states. The exact position depends on your circumstances—confirm with the state, or talk to us and we will check it for you.
Who qualifies as a qualified remote seller?
The program defines a qualified remote seller by reference to the seller’s obligation in each state. In general, the seller must certify that it would not have been required to register and collect in that state but for meeting or exceeding that state’s economic-nexus threshold. The program is therefore aimed at remote sellers whose obligation arose from sales or transaction activity, rather than sellers with another basis for nexus.
Qualification is determined separately for each participating state. A seller may qualify in one state and fail to qualify in another. The adopted rules also require the seller to apply for the states where it has crossed the applicable threshold, agree to register and begin collecting and remitting as required, sign the state contract, and provide the required past-period returns or comparable information and payment.
Do not assume that having no physical office or employees in a state is enough. Inventory, in-state personnel, prior registration or filing, state contact, an audit, or other activities can change the analysis. The program’s state-by-state criteria and your sales history should be reviewed before applying.
Which states participate, and when?
The program is administered through Streamlined Sales Tax (SST), but participation is not simply the same as membership in SST. Under the adopted rule, contingent-member, associate-member, and full-member states are included in the participation framework; the program materials also provide for states joining as full members to offer the program for a minimum period. A state’s participation and implementation should be confirmed before relying on relief.
The exact position here depends on your own facts, so it is worth confirming with the state directly or talking to us about your situation. The rule also provides for later participation by states joining the Governing Board, subject to its terms. Because state adoption and implementation can change, do not treat a general membership list as proof that a particular state is accepting applications on a particular date.
Before applying, check the current SST program page and confirm the state list and application status. If a state where you may owe tax is not participating, a state-specific voluntary disclosure agreement or the MTC process may be worth evaluating instead.
Lookback, tax, penalties, and interest
The rule includes an exception where a participating state is specifically required by its law to use a longer period. It also ties the covered period to the seller’s effective date in the Streamlined registration system and excludes periods before the seller met or exceeded that state’s economic-nexus threshold. The precise start and end dates therefore depend on the state, the seller’s threshold history, and the application and registration details.
For the covered lookback, the program calls for elimination of penalties and late-filing fees to the extent allowed by the participating state’s law. That is meaningful relief, but it is not a promise that every charge will be removed in every case. The program rule does not say that interest is waived. Plan for the possibility that interest will be due, and obtain the state’s written calculation and terms before treating any amount as settled.
Outside this program, states’ assessment periods and voluntary-disclosure lookbacks vary. A state may have different rules where returns were never filed, tax was collected but not remitted, or other facts apply. For New Jersey and New York-specific context, see our articles on Back sales tax and penalties in New Jersey and Back sales tax and penalties in New York.
How the new program differs from the standard multistate process
The new SST program is narrowly focused on qualified remote sellers and sales and use tax obligations arising from economic nexus. The standard MTC Multistate Voluntary Disclosure Program is broader: it can coordinate disclosures for sales/use and certain income or business taxes, but each state’s agreement and lookback terms govern.
The MTC process generally requires payment of tax and interest for the agreed lookback period in exchange for penalty relief and an agreement not to assess earlier periods, subject to exceptions and state terms. Its published guidance says prior state contact about the tax type can disqualify an applicant, and it describes a good-faith minimum estimate for processing. Those MTC conditions should not be assumed to be identical to the SST remote-seller program.
Neither route is automatically better. A seller with physical presence, collected-but-unremitted tax, prior state contact, or liabilities beyond remote sales tax may need a different approach. For state-specific background, see our articles on voluntary disclosure agreements in New Jersey and New York, as well as our guides to Sales tax for foreign sellers in New Jersey and New York.
How to apply and what happens next
Start by mapping sales and tax activity by state and channel: direct website orders, marketplace orders, exempt sales, tax collected, marketplace-collected tax, registrations, returns, and any state correspondence. Identify when each state’s economic-nexus threshold may have been met. Do not contact a state to disclose before checking the program’s application instructions and eligibility rules; prior contact can matter under some disclosure routes.
Submit the completed SST remote-seller disclosure application to the program administrator and identify each state for which you seek relief. If accepted, the seller must sign the applicable state contract within the stated period, register through the Streamlined Sales Tax Registration System for the relevant states, and begin collecting and remitting by the required start date. The seller must return the signed contracts and register in the SST Registration System within 30 days.
After the state accepts the contract, prepare and file the required returns or comparable schedules for the lookback period. After a state accepts the contract, the seller must file the required lookback returns and information within 12 months of receiving the state-signed contract and pay the balance within 30 days after the state provides it, or as otherwise required by the state. Confirm the state’s instructions in writing; filing formats, payment mechanics, and registration details can differ.
What can make a seller ineligible—and what to do now
A seller may not qualify if its obligation in a state is based on something other than crossing the economic-nexus threshold, if it does not meet the program’s certification requirements, or if it cannot agree to the required registration, collection, filing, and payment steps. A state may also have legal constraints or specific terms that affect relief. Eligibility is state-specific, so one disqualifying fact does not necessarily decide every state.
Not sure how this applies to your business? We handle US sales tax registration, filing and remittance for ecommerce sellers as a fully managed service, for one fee. Book a free consultation and we will review your own position with you.
Prior state contact, an audit, existing registration or filing history, physical presence, and collected-but-unremitted tax deserve particular attention. These facts can affect eligibility or the scope of relief, especially under the standard MTC process. Do not assume that a seller can obtain relief simply by submitting an application; wait for the state’s acceptance and written agreement before relying on the proposed terms.
Remote sellers should now preserve transaction and marketplace records, reconcile tax collected against tax remitted, identify states where thresholds may have been crossed, and check the current participating-state list and application status. Sales Tax Compliance USA is a done-for-you sales tax service staffed by people; we can review the facts, help assess the appropriate disclosure route, and manage registration and filing work. The exact position depends on your circumstances—confirm with the state, or talk to us and we will check it for you.
How the SST remote-seller program compares with the standard MTC multistate disclosure route
| Feature | SST remote-seller program | MTC multistate voluntary disclosure |
|---|---|---|
| Primary audience | Qualified remote sellers whose state obligation arises from meeting or exceeding economic-nexus thresholds | Taxpayers with potential liabilities in multiple participating states; not limited to remote sellers |
| Tax types | Sales and use tax | Sales/use and certain income or business taxes, subject to state participation and terms |
| Lookback approach | Negotiated or state-specific lookback; MTC guidance describes prior complete filing periods and state agreement terms | |
| Penalty relief | Eliminates penalties and late-filing fees to the extent allowed by state law | Penalty waiver is generally part of the VDA terms, subject to the state agreement |
| Interest | The program rule does not state that interest is waived; confirm the state’s calculation | Interest is generally due unless the state expressly waives it |
| Application and compliance | Apply through SST; sign state contracts, register through the Streamlined system, then provide lookback filings and payment | Apply through the MTC National Nexus Program or state route; comply with each state’s VDA and registration requirements |
| Key caution | State participation and eligibility must be confirmed individually | Prior state contact about the tax type can disqualify an applicant under MTC guidance |
Frequently asked questions
Does the new program cover remote sellers’ unpaid sales tax?
Yes, it is designed for qualifying remote sellers with sales and use tax obligations arising from economic nexus in participating states. It does not forgive the underlying tax, and eligibility and relief are determined state by state. Collected-but-unremitted tax may be treated differently.
How far back can states assess taxes under the program?
The covered period is also tied to the seller’s threshold history and registration effective date. Confirm the exact period with the participating state.
Are interest charges waived?
The program rule provides for eliminating penalties and late-filing fees to the extent state law allows, but it does not state that interest is waived. A seller should budget for possible interest and obtain the state’s written balance and terms.
Can a seller apply if it has already been contacted by a state?
Do not assume that it can. Prior contact can disqualify a taxpayer under the MTC process, and the effect under the SST program depends on its rules and the state’s position. Have the contact history reviewed before making a disclosure.
Does marketplace collection mean the seller has no back-tax exposure?
Not necessarily. Marketplace collection may cover some transactions, while direct sales or other activities may create separate obligations. Reconcile marketplace records, direct-channel sales, registrations, and tax remittances state by state.
How can a remote seller apply?
Review the current SST program instructions, determine the states and periods involved, and submit the completed application through the program administrator. If accepted, follow each state’s contract, registration, collection, filing, and payment instructions before treating the matter as resolved.
Official sources
- https://www.streamlinedsalestax.org/docs/default-source/amendments/2026-amendments/7-sl26005-03—am26010-01—section-402-1—remote-seller-voluntary-disclosure.pdf?sfvrsn=22bcd5ea_6
- https://www.streamlinedsalestax.org/docs/default-source/comm-slac-documents/slac-2026/sl26005b—process—remote-seller-voluntary-disclosure.pdf?sfvrsn=bbb23464_4
- https://www.mtc.gov/nexus/multistate-voluntary-disclosure-program/
- https://www.mtc.gov/nexus/faq/
- https://www.mtc.gov/nexus/multistate-voluntary-disclosure-application/
Related reading
- Back sales tax and penalties in New Jersey
- Back sales tax and penalties in New York
- Sales tax for foreign sellers in New Jersey
- Sales tax for foreign sellers in New York
- Our sales tax compliance services
Getting this handled
If you would rather not work this out yourself, that is what we do. We register you, file your returns and keep you compliant across every state where you have an obligation — one point of contact, one invoice. Talk to us about your situation.
Reviewed by Paul le Roux, CA(SA). Sales Tax Compliance USA handles US sales tax registration, filing and remittance for cross-border and domestic ecommerce sellers as a fully managed service.
This article is general information for educational purposes and does not constitute legal or tax advice. Sales tax rules change and depend on your specific facts. Consult a qualified tax professional about your own position.