ASR Partners with Arizona Department of Revenue to Address Remote Seller Noncompliance

Oct 08, 2020

ASR is excited to announce that we will be partnering with the Arizona Department of Revenue (ADOR) to identify potential noncompliance under the state’s new out-of-state seller tax lawsASR Analytics provides high-end analytic consulting services to clients in the public and private sectors. Our firm specializes in the development and deployment of modern, analytic solutions to address our clients’ most pressing tax administration and compliance problems.

Following South Dakota v. Wayfair, Inc., in which the US Supreme Court ruled that states have the authority to tax purchases made from out-of-state sellers, many states began passing legislation to tax these transactions. Arizona was one such state, and effective October 1, 2019, out-of-state sellers selling into Arizona must now file and pay Transaction Privilege Tax (TPT). The law identifies two types of entities that are subject to TPT: remote sellers, or entities that directly sell to consumers in Arizona and do not maintain a physical presence in the state, and marketplace facilitators, entities that provide a platform on which third parties can list and sell products. Marketplace facilitators are responsible for collecting and remitting TPT on behalf of the sellers using their platform to transact with Arizona consumers.

ASR’s solution will be delivered via RevHub, our flagship platform for tax analytics, and utilizes AI-based lead generation, behavioral analytics, and advanced case management to increase compliance among remote sellers and marketplace facilitators. ASR has partnered with ADOR since 2015 to prevent tax fraud, using predictive analytics, saving taxpayers millions of dollars. We are excited to collaborate with ADOR’s E-Commerce Compliance and Outreach (ECCO) team on this new endeavor, to further the ADOR mission of serving taxpayers, by ensuring that out-of-state seller tax laws are administered uniformly and equitably.