Looking For USA Tax Updates? Here Are 5 IRS Changes Impacting International Sellers Today

by Ariful | May 23, 2026 | US Updates

Selling into the United States has never been more lucrative, but by May 2026, the regulatory landscape has shifted significantly. If you are an international seller, whether you’re running a DTC brand from the UK, a SaaS company from Europe, or a manufacturing hub in Asia, the IRS and U.S. Customs have introduced a series of updates that directly hit your bottom line.

Navigating the U.S. tax system is no longer just about federal income tax. It is about a complex web of import surcharges, state-level sales tax shifts, and updated reporting requirements. At Sterlinx Global, we see these changes daily as we handle end-to-end compliance for international brands.

Here are the five most critical U.S. tax updates you need to know today to keep your business compliant and profitable in 2026.

1. The New Section 122 Surcharge on U.S. Imports

Perhaps the biggest shock to international supply chains in 2026 is the introduction of the Section 122 surcharge. Following a Supreme Court ruling that shifted how the U.S. handles emergency trade measures, the government introduced this new surcharge under the Trade Act of 1974.

Currently, this is a 10% surcharge on most imported goods, but there is already heavy legislative movement to increase this to 15% before the year ends.

Why this matters for you:
This is not a replacement for existing Section 232 (steel/aluminum) or Section 301 (China-specific) tariffs. Instead, it stacks on top of them. If you were already paying a 25% tariff, your total duty burden could now exceed 35-40%.

Actionable Steps:

• Recalculate Landed Costs: Immediately update your pricing models to include at least a 10% buffer.
• Review Your Margins: If you sell low-margin goods on Amazon or Shopify, this surcharge could turn a profitable SKU into a loss-maker overnight.
• Check Your Incoterms: If you ship DDP (Delivered Duty Paid), you are responsible for this cost. Ensure your shipping quotes explicitly factor in the surcharge.

2. The Death of the $800 "De Minimis" Threshold

For years, many international e-commerce sellers relied on the Section 321 "de minimis" rule, which allowed goods valued under $800 to enter the U.S. duty-free. As of 2026, the suspension of this threshold remains firmly in place.

The Impact on DTC Brands:
The U.S. government has effectively closed the "loophole" that allowed small parcels to bypass the heavy scrutiny of customs and duties. This means every single package, regardless of its low value, is now subject to standard tariffs and the new Section 122 surcharge.

What you should do:

• Assume Everything is Dutiable: Stop banking on "duty-free" shipping for small orders.
• Shift to U.S. Fulfillment: To avoid the administrative headache of individual parcel duties, consider importing in bulk to a U.S.-based 3PL or FBA warehouse. Importing one large shipment is often more cost-effective than paying surcharges on thousands of small ones.
• Clear Communication: If you ship DAP (Delivered at Place), your customers will be hit with tax bills at their doorstep. This is a fast way to destroy your brand reputation. Transition to a DDP model where you handle the tax upfront to keep the customer experience seamless.

For a deeper look at managing these global shifts, see our guide on why cross-border VAT compliance will change the way you scale your digital brand.

3. Expanding Sales Tax Obligations for Digital and Physical Goods

While the IRS handles federal taxes, U.S. states have become more aggressive in 2026 regarding Sales Tax. Since the Wayfair decision, "economic nexus" has been the standard, but the goalposts are moving.

Many states are now broadening their sales tax base to include digital goods, SaaS, and online services that were previously exempt. Furthermore, states are increasing sales tax rates to compensate for lower state income taxes.

The "Treaty" Myth:
A common mistake we see at Sterlinx Global is sellers assuming that a double-taxation treaty between their home country and the U.S. protects them. It does not. Treaties apply to federal income tax, but they have zero impact on state-level Sales Tax.

How to stay compliant:

• Monitor Nexus Thresholds: Most states trigger an obligation at $100,000 in sales or 200 transactions. Keep a monthly log of your sales per state.
• Automate Your Filings: Don't try to manage 45+ different state rules manually. Use a compliance suite that integrates with your store.
• Don't Rely Solely on Marketplaces: While Amazon and eBay collect tax in many states (Marketplace Facilitator rules), they don't cover everything. If you sell via your own website or wholesale, you are likely on the hook for those registrations.

Avoid the most common pitfalls by reading 7 mistakes you’re making with US sales tax and how to fix them.

4. IRS Changes to Form 3520 (Foreign Gift Reporting)

If you are a U.S. person (citizen or green card holder) running an international business, or if you have U.S.-based partners, this update is a massive relief.

Historically, the IRS automatically assessed massive penalties for the late filing of Form 3520 (reporting gifts or capital injections from foreign sources). As of late 2024 and continuing into 2026, the IRS has stopped automatic penalties for Part IV of this form.

Why this is good news:
Instead of an instant fine, the IRS will now allow you to submit a "reasonable cause" explanation before they decide to penalize you. This is a significant win for founders who receive family funding or capital from non-U.S. relatives to grow their brands.

What you should do:

• Check Your Filings: If you received more than $100,000 from a foreign source, ensure Form 3520 was filed.
• Don't Get Complacent: The reporting requirement still exists. If you are late, work with a professional to draft a solid "reasonable cause" letter immediately.

5. Stricter Foreign Tax Credit (FTC) Rules and Global Minimum Tax

For larger international sellers or those operating through complex corporate structures (like a UK Limited Company with a U.S. LLC subsidiary), the rules around the Foreign Tax Credit (FTC) have tightened.

The U.S. is also moving closer to the OECD's 15% Global Minimum Tax (Pillar Two). If you are part of a multinational group, your effective tax rate is now under the microscope.

The Risk of Double Taxation:
The IRS now requires much more rigorous documentation to claim credits for taxes paid in other countries. If your paperwork is messy, you risk being taxed on the same dollar twice.

Action Plan:

• Document Everything: Ensure your bookkeeping clearly separates income by jurisdiction.
• Review Your Corporate Structure: What worked in 2022 might be tax-inefficient in 2026.
• Standardize Your Data: Use a centralized accounting system so that your year-end filings in the U.S. match your filings in the UK or EU.

For more on managing international structures, check out our ultimate guide to USA tax compliance for international sellers.

Your 2026 U.S. Tax Compliance Checklist

Don't let the complexity of the IRS stall your growth. Follow this simple checklist to ensure your business remains on the right side of the law:

1. Landed Cost Audit: Add the 10-15% Section 122 surcharge to your pricing models.
2. Nexus Review: Identify which U.S. states you have crossed the $100k sales threshold in.
3. Incoterm Update: Switch to DDP for a better customer experience if shipping cross-border.
4. Reporting Check: Verify if any foreign capital injections require Form 3520.
5. Data Centralization: Ensure your e-commerce data (Amazon, Shopify, etc.) is being synced daily for accurate tax calculations.

Frequently Asked Questions

Does the Section 122 surcharge apply to digital products?

No, the Section 122 surcharge currently applies to physical "imported goods." However, digital products are increasingly subject to state-level Sales Tax, so you must still monitor your state-by-state nexus.

Can I still use a U.S. LLC to avoid taxes?

A U.S. LLC is a powerful tool, but it is not a "tax-free" ticket. Depending on whether it is a "Disregarded Entity" or a "C-Corp," and where you are personally resident, you will still have reporting requirements (like Form 5472) and potential Sales Tax obligations.

What happens if I ignore U.S. Sales Tax?

States are becoming more adept at finding international sellers through marketplace data. Unpaid Sales Tax can lead to frozen bank accounts, massive penalties, and your removal from platforms like Amazon or Walmart.

Is the $800 de minimis rule ever coming back?

While there is always political debate, the current trend in 2026 is toward more protectionism and revenue collection at the border. It is safer to build your business model around the current rules rather than hoping for a reversal.

How does Sterlinx Global help with U.S. compliance?

We provide a full-suite compliance delivery service. We don't just "advise": we execute. We handle your U.S. bookkeeping, calculate your Sales Tax, manage your filings, and ensure your international entities are reporting correctly.

Want to stop worrying about the IRS and focus on scaling your brand? Talk to an expert at Sterlinx Global today and let us handle your global tax compliance.

Why Everyone Is Talking About New US Marketplace Tax Laws (And You Should Too)

by Ariful | May 23, 2026 | US Updates

The landscape of US sales tax has undergone a seismic shift, and if you are selling into the American market, you simply cannot afford to look away. What used to be a fragmented system of individual seller responsibilities has evolved into a centralized, platform-driven model. These "Marketplace Facilitator Laws" are now the gold standard across the United States, and they have completely rewritten the rulebook for international brands and digital businesses.

Whether you are operating from the UK, Canada, or Australia, understanding how the IRS and individual states view your transactions is the difference between a thriving global expansion and a crushing tax audit. At Sterlinx Global, we see firsthand how daily IRS updates and state-level changes impact our clients' bottom lines. This is why staying compliant is no longer just a "back-office task", it is your new secret weapon for growth.

The Big Shift: From Seller Responsibility to Platform Accountability

Historically, the burden of collecting and remitting sales tax sat squarely on the shoulders of each individual seller. If you sold a widget to a customer in Florida, it was your job to figure out the tax rate, collect it, and send it to the state. However, as millions of small and international sellers flooded platforms like Amazon, Etsy, and Walmart, state governments realized they couldn't efficiently track everyone.

The solution? Marketplace Facilitator Laws.

These laws mandate that the "facilitator", the platform that lists products and processes payments, is now responsible for collecting and remitting sales tax on behalf of the third-party sellers using their platform. By 2026, every US state with a sales tax has some version of these rules in effect.

Understanding Economic Nexus in 2026

While the marketplace might collect the tax, your business still has to deal with "Economic Nexus." This is the legal threshold of economic activity that triggers your obligation to register with a state.

Common thresholds include:

• $100,000 in gross sales into a specific state.
• 200 or more separate transactions into a specific state (though some states are phasing this out).

Don't worry, just because you hit a threshold doesn't always mean you'll be paying more out of pocket. Often, it just means you need to register and report. However, the rules on how you calculate these thresholds vary wildly by state, making USA tax compliance matters more complex than they appear at first glance.

Who Exactly Is a Marketplace Facilitator?

The definition of a marketplace facilitator is broader than you might think. It isn't just restricted to retail giants like Amazon. In 2026, a platform is generally considered a facilitator if it:

1. Lists or advertises products, services, or digital goods for sale.
2. Processes payments or handles the checkout process for the buyer.
3. Takes a fee or commission for the transaction.

This category now encompasses app stores, food delivery services, gig-economy platforms, and even B2B SaaS marketplaces. If you are selling through a third-party site that touches the money, they are likely your marketplace facilitator. This shift is a core component of the ultimate guide to global e-commerce expansion, as it simplifies collection but complicates registration requirements.

Why International Sellers Must Pay Attention

If you are an international seller, you might assume that because Amazon or eBay is collecting the tax, you are "off the hook." This is a dangerous misconception. The reality is that marketplace sales can still create "nexus" exposure for your business.

The Problem of "Mixed" Sales

If you sell through Amazon (marketplace) but also have your own Shopify store (direct-to-consumer), you are in a high-risk zone. Most states require you to count all sales, both marketplace and direct, to determine if you have reached the economic nexus threshold.

For example, if you sell $95,000 via Amazon and $6,000 via your own website into New Jersey, you have exceeded the $100,000 threshold. You must now register in New Jersey and collect tax on that $6,000 of direct sales. Failure to do so leads to penalties that far outweigh the tax itself.

The "Register but No Tax" Paradox

In some states, you are required to register for a sales tax permit even if the marketplace is collecting 100% of the tax for you. You then have to file "zero" returns or report the marketplace sales as "exempt." If you miss these filings, the state may assume you owe money based on your estimated volume and issue a default assessment.

State-by-State Complications You Can’t Ignore

The US doesn't have a single "Sales Tax." It has 45 different state-level systems and thousands of local jurisdictions. This is why a one-size-fits-all approach to US tax is impossible.

• Texas: Texas is notoriously strict. They prohibit facilitators from using simplified local rates in many cases. They require destination-based calculations, meaning the exact tax rate depends on the buyer's front door.
• Louisiana: Recent updates in 2023 and 2024 have changed how economic nexus is calculated, focusing on "retail sales" and requiring facilitators to include all platform sales when determining if they must register.
• Washington: Even if the marketplace collects sales tax, you might still owe the Business & Occupation (B&O) tax. This is a gross receipts tax that applies to your total revenue, regardless of who collected the sales tax at checkout.

Navigating these differences is essential to avoid mistakes with tax filings that can trigger audits across borders.

Actionable Checklist for 2026 Compliance

To stay ahead of the IRS and state tax authorities, follow this structured approach to your US operations.

1. Map Your Sales Volume: List every US state where you have customers. Calculate your gross sales and transaction counts for the last 12 months.
2. Differentiate Your Channels: Identify which sales went through a "Facilitator" (like Amazon) and which were "Direct" (your own site or manual invoicing).
3. Check Threshold Rules: Determine if a state counts marketplace sales toward your nexus threshold. (e.g., Mississippi excludes them, but New Jersey includes them).
4. Register Where Necessary: If you hit the threshold, register for a sales tax permit immediately. Do not wait for the state to contact you.
5. Maintain Records: Keep certificates of proof or contracts from your marketplaces showing they are the "collector of record." This is your primary defense in an audit.
6. Review Your Bookkeeping: Ensure your accounting software can distinguish between taxed and non-taxed transactions to prevent reporting errors.

How Sterlinx Global Simplifies US Tax Compliance

Managing US sales tax is a full-time job. Between shifting state laws and the need for daily monitoring, it is easy for international sellers to fall behind. This is where our global tax compliance suite comes in.

We don't just "advise" you on what to do; we handle the execution. You provide the data, and we complete the compliance. Our team monitors IRS and state-level changes daily to ensure your business remains in good standing across every jurisdiction you touch. From initial registration to ongoing monthly filings, we take the administrative weight off your shoulders.

By partnering with us, you gain a dedicated team that understands the intersection of VAT, GST, and US Sales Tax. We ensure that your expansion into the US market is built on a foundation of total compliance, allowing you to focus on scaling your brand.

Ready to secure your US tax position?
Contact us today to speak with an expert about your marketplace compliance.

Frequently Asked Questions

If Amazon collects my tax, why do I need a tax professional?

Amazon only collects tax on the sales made through their platform. They do not manage your economic nexus registrations, your filings for direct sales, or your corporate tax obligations. A tax professional ensures you aren't creating unregistered nexus that could lead to massive retroactive liability.

What is "Retroactive Liability"?

If you have had nexus in a state for years but never registered, the state can come after you for all the tax you should have collected plus heavy interest and penalties. In some cases, this can go back to 2018.

Do I need a US LLC to sell in the US?

Not necessarily. Many international sellers operate as foreign entities. However, whether you are a UK Limited Company or a Canadian Corporation, you still have "Sales Tax Nexus" if you sell to US residents.

Does the 2026 global e-commerce report cover these changes?

Yes, we keep our 2026 Global E-commerce reports updated with the latest US marketplace facilitator rules to help international sellers navigate cross-border trade.

What if I only sell digital goods?

Digital goods are taxable in many US states. Marketplace facilitator laws apply to digital marketplaces (like app stores or SaaS platforms) just as they do to physical goods. You must track your digital sales by state to ensure you haven't triggered economic nexus.