Yes. You’re typically disqualified if a state has already contacted you about sales tax issues – even if you’ve received a nexus questionnaire. If you’re already registered for sales tax in that state, or if you’ve been collecting tax there, you may also be ineligible.

This makes proactive action critical. Act before states reach out to you to maximize your eligibility for the most favorable terms. Once a state initiates contact, you lose negotiating power and access to VDA benefits like penalty waivers and shortened look-back periods.