Marketplace Fairness Act Burdens Businesses with Unfair and Expensive Audits
An essential article on the costs of compliance on small businesses was just posted at Forbes. Author David Marotta, details how the compliance and audit risk will have devastating effect on small businesses and the economy. The "Marketplace Fairness Act" must be defeated and the way to defeat a bill this bad is to shine light on it. Important quotes from the article:
Compliance isn’t just a technical burden. It is a threat of legal liability. The bill allows state tax audits by any state against any online vendor. Such audits are accompanied by specific forms and deadlines. Penalties are owed if you are late or have made mistakes. We all make mistakes.
If you think putting this burden of compliance on small businesses is trivial and the tax is truly a tax already owed, try complying with the law. See if you can figure out how much you owe in use tax, when the tax is owed and where the money should be sent. Burdening businesses with paper audits from 50 different states is a surefire way to reduce the number of small businesses.
The author, David Marotta, makes some astute observations and calls attention to the truth about this bill.