Internet Transactions Resolution Program

The North Carolina Department of Revenue is collaborating with e-commerce retailers that have operated affiliate programs in the state to resolve issues of tax liability and to promote equal treatment of all businesses in the State. The Internet Transactions Resolution Program (Program) is the result of cooperative discussions between the Department and a number of e-commerce retailers.

Any retailer that failed to register for sales and use tax as a result of operating an affiliate program in North Carolina at any time is eligible to participate in the Program. Participants may resolve their prior tax liability by registering for sales and use tax and agreeing to collect and remit those taxes for four years, beginning September 1, 2010.

The Department of Revenue agrees not to assess tax, penalties or interest for periods prior to September 1, 2010 for retailers that successfully complete the program. For participants in the Program, the Department also agrees to not exercise its authority to obtain consumer information from the retailer to collect a tax liability for the period prior to September 1, 2010.

The program will begin on April 23, 2010. Eligible retailers must submit an election to participate in the Program by June 30, 2010. A resolution agreement must be signed by both the retailer and Department by August 31, 2010.

Interested retailers can obtain additional information about the Program by contacting:

For retailers that fail to participate and are subject to nexus filing requirements, the Department will assess all applicable tax, penalties and interest. Applicable penalties will not be waived. There is no statute of limitations for sales tax liability if a retailer has never registered and filed sales tax returns.

The following resources provide additional information about sales and use tax and the Program: