As I mentioned in my last post, Tax Solution from NY Meeting, we identified the solution to the NY Affiliate tax situation. The solution was clearly indicated in the memos released by NYS. To briefly recap, out of state merchants with no other cause of nexus in NY, will need to have a signed agreement on file from NY affiliates stating that the affiliate from NY will adhere to certain guidelines. Although NYS has indicated they will at some time prepare a sample agreement we are not waiting for it.
On Tuesday, July 30, we retained the law firm to draft a letter that will clearly state the steps affiliates and merchants will need to take. We are also obtaining from them a sample agreement to be signed by affiliates and kept by merchant. We are taking these steps in order to facilitate our reinstatement into programs.
The informational letter and sample agreement drafted by our lawyers will be made readily available. I was given an tentative date of early next week for the initial drafts and I will post updates to time frame.
We firmly believe that by taking the initiative, offers of reinstatement should be forthcoming soon. We have worked very hard to find a way to be able to continue to work with all merchants and we look forward to renewing our partnerships.
We are continuing to move forward to implement the solution and I will continue to update you on our progress.