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A marketplace facilitator or remote seller may seek liability relief for a failure to pay the correct amount of transaction privilege tax (TPT). The department may also waive penalties and interest as liability relief if reasonable cause exists and taxes were paid by the marketplace facilitator or remote seller during the timeframe in which relief is being sought.
To obtain liability relief, the marketplace facilitator or remote seller must act in good faith. “Good faith” means acting with honesty and with no knowledge of circumstances that would render the marketplace facilitator or remote seller ineligible for liability relief. Additionally, where a marketplace facilitator or remote seller previously obtained liability relief for the same type of errors, the department may grant relief where, under the circumstances, is reasonable. The department will consider such factors as whether the marketplace facilitator knew or should have known the information provided by a marketplace seller was incorrect, or if applicable, how many times the marketplace facilitator had already obtained liability relief based on the same type of errors or inaccurate information.
A marketplace facilitator may qualify for liability relief for failing to pay the correct amount of TPT in relation to a marketplace seller’s sales in two situations:
The liability relief for Situation 2 may not exceed the following:
In each case, the marketplace facilitator bears the burden of proving its qualification for liability relief to the department.
A marketplace facilitator’s liability relief limitations are applied in relation to the total Arizona tax liability of all the marketplace sellers selling on the marketplace facilitator’s marketplace. A marketplace facilitator cannot seek liability relief on its sales or the sales of its affiliates.
A remote seller may qualify for liability relief for failing to pay the correct amount of transaction privilege tax, provided the error is not sourcing-related. The liability relief provided in this subsection may not exceed the following: