3.5 Million Remote Retailers? – The MFA Trojan Horse

In a public summary to potential investors, Fedtax/Taxcloud reveals some pretty interesting details about the business of being a CSP and the business they think it can be.

“We expect a tidal wave of new business once federal legislation passes, as merchants and e-commerce platforms alike look for the best way to comply with new sales tax guidelines”

“To best reach our market of approximately 3.5 million remote retailers”

3.5 million remote retailers?  The truth comes out, or perhaps a huge estimate for an audience of potential investors?  I can only guess that this is based on no small business exemption.  I do believe Taxcloud would be in favor of signing up lemonade stands if they sold remotely.  No idea on the methodology used for this market number.

It’s refreshing, but completely counter to the Pro-Marketplace Fairness Act supporter’s numbers.  Some have put the number as affected retailers as under 1000 (which was laughable).  An independent study puts it more like 30,000 in 2008.

So is the MFA, as-pitched, just the Trojan horse of shrinking or eliminating the small business exemption?  Maybe.  If it were up to the states and tax companies – it sure would be.

Time to sound the alarm to ALL small businesses who in any way sell remotely.  You are ALL part of the “market”.  Don’t think you’re OK because of the current small business exemption in the legislation.  There are active talks about lowering or removing it.  You will have to deal with all the audit risks, headaches, integration issues…. too!

 

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