In a letter to the chairmen and ranking members of the House and Senate’s tax writing and judiciary committees, the American Institute of Certified Public Accountants encouraged Congress to revise legislation that would allow states to impose new tax burdens on small businesses that use the Internet. One of the AICPA’s top suggestions for the Marketplace Fairness Act (H.R. 684/S.743) is substantially increasing the bill’s small business exemption. The current version of the bill only protects businesses with less than $1 million in total remote sales, which would force thousands of small business retailers across the country to comply with the same tax burdens as large multi-billion-dollar retailers.

While the AICPA did not take an official position against the legislation, the organization said it encouraged and supported “efforts to simplify and streamline tax compliance and administration” for small businesses. Among the AICPA’s other suggestions were providing small businesses more filing flexibility, a state-level de minimis exemption, and greater state sales tax simplification.

The AICPA’s recommendations reflect many of eBay’s concerns about the MFA. eBay has long supported protections for innovative small businesses, including adoption of a $10 million small business exemption, to ensure that America’s small businesses are not burdened by harmful out-of-state enforcement actions. eBay believes the Internet is an essential tool to enable small businesses to grow and reach new customers around the world. Visit the Action Center for more information about eBay’s position on Internet sales tax legislation and to share your concerns about the Marketplace Fairness Act to your members of Congress.