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Fanatics Pays $1.5 Million to New York for Sales Tax Violations

Oct. 19, 2021, 8:14 PM

Fanatics Inc. will pay New York more than $1.5 million in damages and penalties to resolve a whistleblower complaint alleging the sports memorabilia seller undercollected sales taxes from online sales for at least three years.

The company cheated the state and local units of government by failing to “properly calculate and charge sales tax,” New York Attorney General Letitia James said Tuesday. The Jacksonville, Fla.-based company, which sells a wide range of sports merchandise through Fanatics.com, was fully aware of systemic failures in its tax computation system but didn’t correct the problem, James said.

In 2013, Fanatics implemented ...