Online Sellers Face Rising Sales Tax Crackdowns Heading into 2026
MIAMI, FL, UNITED STATES, November 20, 2025 /EINPresswire.com/ -- Online sellers are heading into 2026 under growing pressure as states step up sales tax enforcement. New industry data shows that Amazon and Shopify sellers face higher risks from tighter rules, faster audits, and more complicated state tax requirements.
What was once a small back-office task has now become a major business risk for eCommerce brands of all sizes.
More than 40 states have expanded tax enforcement programs as they look to close budget gaps and capture more online sales tax revenue. Small and midsize sellers are now under closer review to determine whether they have created nexus, collected the correct tax, and filed required returns. Many sellers remain unaware they have triggered these obligations.
KEY ISSUE: NEXUS RULES KEEP CHANGING
Since the 2018 Wayfair decision, states have introduced economic nexus rules that require remote sellers to collect and remit sales tax, even without a physical presence. While many sellers understand the concept of nexus, fewer understand how complex the rules have become.
Commonly overlooked areas include:
State-specific revenue and transaction thresholds
Inventory stored in out-of-state warehouses
Quarterly and annual threshold resets
Retroactive penalties for late registration
Marketplace facilitator rule changes
Most sellers only discover problems after receiving a notice from a state, a marketplace alert, or an audit request.
“Most sellers are surprised by how many activities trigger nexus,” said a senior state tax analyst. “Every expansion changes their risk profile, and the rules move faster every year.”
SALES TAX IS NO LONGER SIMPLE
Sales tax filing has become a major operational burden for online sellers. Requirements vary widely by state:
Some states require monthly filings
Others allow quarterly or annual filings
Some require zero-dollar filings even when no tax is collected
Late penalties apply even when no money is owed
Sellers operating across Amazon, Shopify, Walmart Marketplace, and other platforms also face challenges reconciling reports from multiple systems.
“This is no longer basic bookkeeping,” said a compliance director who advises multi-state sellers. “It’s a full compliance function that many sellers aren’t prepared for.”
AUDITS ARE INCREASING NATIONWIDE
State tax departments have expanded remote seller audit programs over the past two years. Many now use automated systems to cross-check marketplace data, state registrations, and tax payments.
States are now flagging sellers who:
Have nexus but never registered
Registered but stopped filing
Collected tax but underpaid
Relied only on marketplace facilitators
“This isn’t just about large brands,” said a digital commerce tax specialist. “Smaller sellers are now firmly on the radar.”
AMAZON SELLERS FACE HIDDEN RISK
For Amazon FBA sellers, inventory stored in state warehouses creates physical nexus, even if the seller has never visited or operated in that state. Many sellers mistakenly believe that all sales tax obligations are handled by marketplaces, when this is often not the case.
ECOMMERCE ACCOUNTING IS NOW CRITICAL
As tax rules grow more complex, specialized eCommerce accounting teams are playing a larger role in helping sellers stay compliant. These teams help sellers:
Identify states where taxes are owed
Track threshold changes year-round
Standardize reporting workflows
File accurately and on time
Avoid over- or under-collecting tax
AMZ Accountant, a U.S.-based CPA firm focused exclusively on eCommerce sellers, reports a sharp increase in demand for multi-state tax support.
“Sellers want clarity,” said Imran Yusufov at AMZ Accountant. “They need to understand where they owe tax, why they owe it, and how to fix issues before states take action.”
PROACTIVE COMPLIANCE BECOMES THE STANDARD
More sellers are shifting from reactive compliance to proactive strategies, including:
Regular nexus reviews
Real-time threshold monitoring
Automated multi-channel reporting
Centralized filing calendars
Ongoing expert guidance
Sellers who adopt these strategies report fewer penalties, improved cash flow visibility, and stronger long-term planning.
LOOKING AHEAD
As the digital economy continues to expand in 2026, states are expected to introduce tighter rules, more automated enforcement systems, and new reporting requirements.
Sales tax is no longer optional for online sellers. It is now a core business risk that directly affects growth, profitability, and scalability.
Industry experts agree: sellers who invest in compliance now will be best positioned to grow confidently in the years ahead.
What was once a small back-office task has now become a major business risk for eCommerce brands of all sizes.
More than 40 states have expanded tax enforcement programs as they look to close budget gaps and capture more online sales tax revenue. Small and midsize sellers are now under closer review to determine whether they have created nexus, collected the correct tax, and filed required returns. Many sellers remain unaware they have triggered these obligations.
KEY ISSUE: NEXUS RULES KEEP CHANGING
Since the 2018 Wayfair decision, states have introduced economic nexus rules that require remote sellers to collect and remit sales tax, even without a physical presence. While many sellers understand the concept of nexus, fewer understand how complex the rules have become.
Commonly overlooked areas include:
State-specific revenue and transaction thresholds
Inventory stored in out-of-state warehouses
Quarterly and annual threshold resets
Retroactive penalties for late registration
Marketplace facilitator rule changes
Most sellers only discover problems after receiving a notice from a state, a marketplace alert, or an audit request.
“Most sellers are surprised by how many activities trigger nexus,” said a senior state tax analyst. “Every expansion changes their risk profile, and the rules move faster every year.”
SALES TAX IS NO LONGER SIMPLE
Sales tax filing has become a major operational burden for online sellers. Requirements vary widely by state:
Some states require monthly filings
Others allow quarterly or annual filings
Some require zero-dollar filings even when no tax is collected
Late penalties apply even when no money is owed
Sellers operating across Amazon, Shopify, Walmart Marketplace, and other platforms also face challenges reconciling reports from multiple systems.
“This is no longer basic bookkeeping,” said a compliance director who advises multi-state sellers. “It’s a full compliance function that many sellers aren’t prepared for.”
AUDITS ARE INCREASING NATIONWIDE
State tax departments have expanded remote seller audit programs over the past two years. Many now use automated systems to cross-check marketplace data, state registrations, and tax payments.
States are now flagging sellers who:
Have nexus but never registered
Registered but stopped filing
Collected tax but underpaid
Relied only on marketplace facilitators
“This isn’t just about large brands,” said a digital commerce tax specialist. “Smaller sellers are now firmly on the radar.”
AMAZON SELLERS FACE HIDDEN RISK
For Amazon FBA sellers, inventory stored in state warehouses creates physical nexus, even if the seller has never visited or operated in that state. Many sellers mistakenly believe that all sales tax obligations are handled by marketplaces, when this is often not the case.
ECOMMERCE ACCOUNTING IS NOW CRITICAL
As tax rules grow more complex, specialized eCommerce accounting teams are playing a larger role in helping sellers stay compliant. These teams help sellers:
Identify states where taxes are owed
Track threshold changes year-round
Standardize reporting workflows
File accurately and on time
Avoid over- or under-collecting tax
AMZ Accountant, a U.S.-based CPA firm focused exclusively on eCommerce sellers, reports a sharp increase in demand for multi-state tax support.
“Sellers want clarity,” said Imran Yusufov at AMZ Accountant. “They need to understand where they owe tax, why they owe it, and how to fix issues before states take action.”
PROACTIVE COMPLIANCE BECOMES THE STANDARD
More sellers are shifting from reactive compliance to proactive strategies, including:
Regular nexus reviews
Real-time threshold monitoring
Automated multi-channel reporting
Centralized filing calendars
Ongoing expert guidance
Sellers who adopt these strategies report fewer penalties, improved cash flow visibility, and stronger long-term planning.
LOOKING AHEAD
As the digital economy continues to expand in 2026, states are expected to introduce tighter rules, more automated enforcement systems, and new reporting requirements.
Sales tax is no longer optional for online sellers. It is now a core business risk that directly affects growth, profitability, and scalability.
Industry experts agree: sellers who invest in compliance now will be best positioned to grow confidently in the years ahead.
Stephen Olmon
Unlimited Content
+44 7799 180194
email us here
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