Amazon.com Inc. (AMZN) has a tax fight on its hands in South Carolina, a state that claims the company is failing to collect taxes on items sold by third party sellers on its site.
South Carolina's Department of Revenue filed a complaint in June saying that Amazon is responsible for collecting taxes on behalf of the businesses that use the marketplace, according to documents reviewed by CNBC.
"If South Carolina or other states were successfully to seek additional adjustments of a similar nature, we could be subject to significant additional tax liabilities. We intend to defend ourselves vigorously in this matter," Amazon said in response to the complaint.
Shares of Amazon are flat in afternoon trading.
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