As Second Anniversary Nears, Is Wayfair ‘Grace Period’ Over?

With the two-year anniversary of the U.S. Supreme Court’s landmark Wayfair ruling just two weeks away, the enforcement “grace period” may be over.

Corporate tax departments have wondered for months whether states would initiate enforcement strategies under new statutes imposing tax collection duties on remote sellers and marketplace providers. To date, taxpayers have seen very few audits or industry-wide compliance initiatives.

The Covid-19 pandemic has slowed the process, forcing state revenue departments to ease up on enforcement efforts as auditors and taxpayers work remotely.

But this “unspoken grace period” may be coming to an end shortly, as state tax officials ...