Online sports retailer pays $1.5M in under-collected sales tax

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New York state has secured $1.5 million from Fanatics.

The online sports retailer is accused of under-collecting sales tax. State Attorney General Tish James says an investigation found that Fanatics’ sales tax collection system didn’t calculate the correct amount of sales tax due to the state and various local governments.

James says that in 2014, Fanatics became aware of the tax collection system failing periodically, but didn’t fully correct the issues until 2017.

Fanatics sells licensed sports merchandise and memorabilia online.