Amazon Could Face Hefty Bill for Unpaid Taxes to South Carolina

Amazon Services LLC could be forced to write a check for much more than the $12.5 million in unpaid taxes a South Carolina appeals court affirmed in a ruling that found the company had failed to collect and remit sales tax on third-party sales into the state.

Academics and state tax analysts watching the case said Amazon’s liability could run far higher if the court ruling is sustained and the South Carolina Department of Revenue pursues back taxes, penalties, and interest for all three years of the long-running tax dispute.

The ruling, released by the Court of Appeals on ...