Two years ago, I started using an independent 3PL and Amazon FBA to handle fulfillment. Revenue has been steady (around $2.2M annually), and I’ve always stayed current with my federal and home state taxes.

What I missed was that storing inventory in different fulfillment centers across the country triggered physical nexus in multiple states. I originally thought I only needed to track the economic thresholds for sales tax.

Recently, I started receiving notices from a few states, including California and Washington, regarding uncollected taxes.

I brought this to my current CPA, but they let me know this type of multi-state compliance is outside their firm’s scope. They advised me to look into Voluntary Disclosure Agreements (VDAs) to handle the back taxes and waive the penalties properly.

I have the cash reserves to cover the actual tax liabilities, but the process of retroactive registration and negotiating these agreements across 10+ states is out of my depth.

How are other e-commerce owners handling this? If anyone has gone through the VDA process or has a recommendation for a firm that specializes in this specific area, I’d appreciate the insight.