Are there differences in audits of sellers that use a CSP and those that don't?
If you contract with a CSP and you are a “CSP-compensated seller,” the states will generally contact the CSP for any audits or questions concerning your returns and tax payments. If additional documentation is required, the CSP will contact you for that documentation. The purpose of the Streamlined Agreement is to reduce the burden of tax compliance for you, which includes reducing the number of auditors at your business.
If you use a CAS, the state will contact you directly to conduct the audit.
What is personally identifiable information?
Personally identifiable information is information that identifies who you are. With very limited exceptions, a Certified Service Provider (CSP) performs its tax calculation, remittance, and reporting functions without retaining the identity of the consumers. The CSP must certify that personally identifiable information is only retained and used to the extent necessary to document sales to exempt purchasers and to identify proper taxing jurisdictions.
Will a seller that contracts with a CSP be audited by all states?
No, any audits would be performed through the CSP. The individual seller would not be contacted by any individual state. The purpose of the SSUTA is to reduce the burden of tax compliance for sellers. Streamlined’s goals are to ensure uniformity across states in registration, sourcing of sales, exemption administration and tax return filing. One of the intentions of Streamlined is to limit the intrusion of auditors on sellers.
CSP Compensation FAQs
Can a seller's status change for purposes of CSP compensation?
Yes, if a seller that uses a CSP changes their business and qualifies as a “CSP-compensated seller” as defined in the CSP contract, the CSP can begin collecting compensation. The state’s nexus laws do not preclude a CSP from receiving compensation as long as the seller meets the definition of a “CSP-compensated seller” contained in the CSP contract.
The CSP must update the status of the seller in the SSTRS before that state will allow the CSP to claim compensation.
See CSP Contract Section D.2 (Definitions) for criteria for a “CSP-compensated seller.”
Does a CSP get compensation if the taxes are not remitted to the state by the due date?
If the CSP filed the return without payment timely and provided the notice required for failure to pay under the contract and the CSP remits the taxes due within 60 days of the due date (and must be within 10 days of seller providing payment to the CSP), the CSP is entitled to compensation. The state may offer a longer time period than 60 days. If payment is not made within the time period allowed the CSP does not receive compensation from the state but may pursue the lost compensation from the seller.
The CSP can get compensation if state improperly rejects the return per the CSP contract.
Is there a monetary allowance for CAS users?
Sellers that use a CAS will receive an allowance for a period not to exceed 24 months following the seller’s registration through the SSTRS from each Streamlined Member State in which the seller does not have a legal requirement to be registered. This allowance is in addition to any discount or other allowance the state may provide.