For sure. This is a slippery slope.
Check it out:
Internet sales tax legislation could subject small online businesses to up to 46 state audits.
And since sales taxes vary among thousands of tax jurisdictions across the country, the chances that auditors will find mistakes—and slap the business owners with penalties—are very good. If truth-in-advertising requirements applied to legislation, says Heritage Action’s Dan Holler, the Marketplace Fairness Act would be renamed the Tax Audits from Hell Act of 2013.
Here’s how the bill works: Online businesses would be required to figure the sales tax each customer owes based on where the customer lives—even though the businesses themselves have no other dealings with that state or local government.
There are more than 9,600 state and local taxing jurisdictions in the U.S., and small businesses would be required to send the appropriate number of tax dollars—state and local—to every one where they sell.