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Alaska sales tax notices

Got a letter from the Alaska Remote Seller Sales Tax Commission (ARSSTC)? Find it below to see what it means, why businesses usually receive it, and what to do next.

Sources checked

Tax authority

Alaska Remote Seller Sales Tax Commission (ARSSTC) (opens in a new tab)

Disagree with a notice?

To dispute a Commission finding on taxable sales, sales tax, or penalties and interest, file a written protest with the Protest Review Committee. Explain why you are challenging the finding or why the amount should change. The committee may hold an informal meeting or hearing, and may require an audit. It then issues a final written determination. If no protest is filed on time, the findings become final and payable.

Deadline: 30 calendar days from the date of the written notice of the Commission's findings

Source: Alaska Remote Seller Sales Tax Commission (ARSSTC) (opens in a new tab)

Failure to file

The authority has no return on record for a period it expects one, often because an account is open but filings stopped.

Failure to file

Notice of estimated tax

A written notice that the Commission has estimated the sales tax you owe because it could not work out the correct amount. It is delivered to your place of business or sent by certified mail.

Why you got it

  • A remote seller or marketplace facilitator did not file a return
  • Records were inaccurate, inspection was refused, or a return appeared false or inaccurate

What to do

  1. Check the periods on the notice against your ARSSTC filing history, in case returns were already filed.
  2. Within 30 calendar days, file complete and accurate returns for the delinquent periods, backed by records. The Code says these returns must come with full payment of tax, interest, penalties and costs.
  3. If the estimate names the wrong seller, has a clerical error in the amount, or rests on a disputed exemption denial, file a written appeal with the Commission within the same 30 days instead. Reasons for filing late are not grounds for this appeal.
  4. The Commission's penalty waiver is narrow: it must be requested in writing within 45 days of the delinquency, with full payment, and only for a good compliance history or circumstances outside your control. Ask the Commission whether you still qualify.

Before you pay penalties: check whether you can ask for them to be waived, and what the state needs paid first. How to ask

Response window: 30 calendar days after service of the notice of estimated tax

Source: Code - ARSSTC (Remote Seller Sales Tax Code, Section 110 - Estimated Tax) (opens in a new tab)

Assessment

A proposed or final determination of tax owed, sometimes estimated when returns were never filed.

Assessment

Written notice of the Commission's findings (audit results)

The audit results or other Commission findings on taxable sales, sales tax, penalties and interest, mailed to the business's address of record.

Why you got it

  • An audit or investigation found the return figures were wrong and additional tax is due

What to do

  1. Review the findings on taxable sales, tax, penalties and interest against your sales records, period by period.
  2. If you disagree with any part, including the penalties or interest, file a written protest with the Protest Review Committee within 30 calendar days explaining why. If no protest is filed on time, the findings become final and payable.
  3. If you agree, pay through the ARSSTC filing portal. A penalty waiver under the Commission's policy must be requested within 45 days of the delinquency and with full payment, so check with the Commission whether that is still open to you.

Before you pay penalties: check whether you can ask for them to be waived, and what the state needs paid first. How to ask

Response window: 30 calendar days from the date of the written notice

Source: Code - ARSSTC (Remote Seller Sales Tax Code, Section 170 - Protests) (opens in a new tab)

Audit

A request for records or notice that the authority is examining your returns.

Audit

Sales tax audit (written demand for records)

A written demand from the Commission to examine your books and records in a discretionary remote sales tax audit.

Why you got it

  • Any registered remote seller or marketplace facilitator can be audited at any time
  • The Commission wants to check a return, or find out what is owed when no return was filed

What to do

  1. Respond promptly and agree a time to present the requested books and records at the Commission's office, or another place you agree on with the Commission.
  2. Gather your sales records for the audit period. The Code requires you to keep them for 3 years.
  3. Consider getting help from a sales tax professional. If the audit finds more than $500 in additional tax because sales were not reported accurately, you pay the full cost of the audit.

Source: Code - ARSSTC (Remote Seller Sales Tax Code, Section 160 - Audits) (opens in a new tab)

Collections

Enforcement on unpaid balances, such as liens, levies, warrants, or referral to a collection agency.

Collections

Written notice of intent to file (sales tax lien)

A notice, mailed to your last known address, that the Commission intends to file and record a sales tax lien against your real and personal property.

Why you got it

  • Returns were not filed for two consecutive filing periods
  • Amounts due were not paid, and no secured payment agreement was made, within 60 days after the end of the filing period

What to do

  1. File all missing returns and pay the amounts due, or enter into a secured payment agreement with the Commission.
  2. Contact the Commission quickly to confirm the balance before the lien is filed and recorded.
  3. If you believe the delinquency was caused by circumstances beyond your control, you can ask for a penalty waiver in writing. You can also ask if you have a history of good compliance. Send the request within 45 days of the delinquency, with full payment of the taxes, interest and any penalty owed.

Before you pay penalties: check whether you can ask for them to be waived, and what the state needs paid first. How to ask

Source: Code - ARSSTC (Remote Seller Sales Tax Code, Section 240 - Violations) (opens in a new tab)

Ask for penalty relief

Penalties on a Alaska notice aren't always final. You can ask for them to be waived. Follow the steps below, including anything the state requires you to file or pay before it reviews the request.

Penalty waiver (ARSSTC Penalty Waiver Policy)

  1. Send the Commission a written waiver request within 45 calendar days after the date of delinquency
  2. Include full payment of all delinquent tax, interest and penalty with the request (the Code requires this; a waived penalty is not simply left unpaid)
  3. Explain the reason and include the facts and documents that prove it
  4. Only one waiver can be granted per calendar year

What qualifies: A history of good compliance (no late fees, penalties or waivers in the look-back period: 12 months for monthly, 24 for quarterly, 36 for annual filers), or circumstances outside the seller's control such as death or serious illness, unavoidable absence, or fire destroying records. Financial hardship, not knowing about the tax, and employee or contractor mistakes do not qualify.

Interest: Interest is not covered: the policy waives only the late filing fee and late payment penalty, and tax and interest must be paid in full with the request.

Source: ARSSTC Penalty Waiver Policy (approved by the ARSSTC Board 2/24/2021) (opens in a new tab)

Before you respond

  • Check the date on the notice. Response windows usually run from that date, not the day you open it.
  • Match the account number and filing period to your own records before paying or disputing.
  • If returns are missing, filing the actual returns usually replaces an estimated bill. Confirm how on the notice or with the authority.
  • Ask about penalty relief before paying penalties, and check what must be paid with the request. See how
  • Keep a copy of the notice and everything you send back.

This page is general information, not tax or legal advice. Notice names and procedures change, so always follow the instructions on your notice and the official sources linked above.

Need the rates, nexus thresholds and filing rules? Read the Alaska sales tax guide.

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