Sales tax audit

[adamh]

Just got done with a Sales tax Audit.

I had no idea that when I order stuff from Cobbs, Olsen, Judson or anything from out of state, I have to pay Idaho sales tax on it.

I got audited for the last 4 years looking for unpaid sales tax. I did not have too much but I had to pay sales tax on everything I ordered since 2008.

Legally you are supposed to do this on everything you order, personal and business. I told the IRS guy I didn’t think anyone in the state was actually doing this and he said I was right. That is why they are starting these types of audits. I just happened to be the lucky one.

The IRS has nothing better to do then waste 2 complete days on me for a few dollars???

Adam

 

[Desk Jockey]

I had a labor audit a few years back, she spent a week here. The only thing she found was that we had worked my son who was 16 at the time too many hours for his age. $700.00 fine and I appealed it but no go I had to pay the $700.00 since we are a corp, where as when I was a kid my father could work me as much as needed since he was a sole proprietor.

I asked her if there was ever a time they didn't levy a fine and she said not since she had worked there.

 

[KevinD]

It's called a use tax

 

[KevinD]

Your suppose to pay a use tax on all untaxed internet purchases also (business and personal)

 

[floorguy]

yup and its a bitch.....

which is why they have been trying to find a way to tax internet stuff....

did he also tell you to get a number??

and how or why did they decide to pick you??

 

[adamh]

and how or why did they decide to pick you??

Randomly picked out of thousands....

 

[Ken Snow]

As a local retailer we are disturbed b the lack of sales tax for internet purchases. This gives an unfair advantage to internet sales companies who also do not have the cost of brick and mortar stores (this doesn't really apply to suppliers here). We support the collection and payment of sales tax from internet/out of state sales in the state/county etc., where the purchaser resides or ship to. It would be a burden at start up for the collecting company but after the initial systems overhaul should be manageable. If you want to do business in 50 states it would be the cost of doing business. Actually just eliminating sales tax would be even better but that ain't gonna happen.

 

[The Great Oz]

A couple of years ago a State tax collector spoke at a cleaner's meeting and told us to expect audits. He said since tax revenues were down along with the economy they were going to shake every tree to collect those missing funds, and they'd discovered that carpet cleaners as a group purchased out of state and through the internet so we would be a target. We were audited six weeks later.

 

[Newman]

So, how much did it cost the State to collect a few shekels? State employee investing 2 days of service pouring over your receipts being paid benefits and pension? Sounds like a winner.

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Actually just eliminating sales tax would be even better but that ain't gonna happen.

X2! The online sales tax is just a money grab by the states and local municipalities. Merely an attempt by the cash wasting governmental authorities to continue increasing the share of their constituents income they can consume. Online retail sales are an alternative business model. Like any free market it provides consumers a choice. The costs and benefits are not the same as local brick and mortar retailers. Attempting to force consistency with an old traditional model just doesn't make sense. I just can not seem to find an 8 track tape anymore, the sands of time are constantly shifting. There are somewhere around 45 States and 7000 local municipalities lining their coffers with sales taxes. It would currently be a nightmare to track and pay these unreasonable surcharges, at the same rates as a brick and mortar, when no local or state services are impacted by the retailer or the transaction.

 

[joey895]

As a local retailer we are disturbed b the lack of sales tax for internet purchases. This gives an unfair advantage to internet sales companies who also do not have the cost of brick and mortar stores (this doesn't really apply to suppliers here). We support the collection and payment of sales tax from internet/out of state sales in the state/county etc., where the purchaser resides or ship to. It would be a burden at start up for the collecting company but after the initial systems overhaul should be manageable. If you want to do business in 50 states it would be the cost of doing business. Actually just eliminating sales tax would be even better but that ain't gonna happen.

I get what you are saying but taking additional money out of the private sector and giving it to the government is absolutely NOT the right thing to do at this point in history. Overall the only ones that would benefit would be the government.

Sent from my Galaxy Nexus using Tapatalk 2

 

[SMRBAP]

My first business was an internet retail co. Pro audio gear is what I peddled. I once did the math - having a brick and mortar and traditional advertising vs. running it from my home and bearing the expense of maintaining seo for the over 500 products I carried was virtually a wash. There wasn't enough market locally to support a B&M for such a niche product lineup.

But it is a free market and the out of state no tax really isn't an advantage if the buyers play buy the rules, in fact, it's likely a disadvantage because it's more tax prep work in the end - but most see the nickels saved up front only.

Having a 10k sq ft facility and state of the art equipment, playing this cleaning game against guys working out of their cars renting portys, and even those working from their home using circa 80's vans and extractors really isn't any different than B&M's vs Internet companies when you reduce it to it's most basic advantage - cost of doing business.

You have to find your way around it to come out a winner. There isn't anything stopping a B&M from selling online, anymore than the other way around.

 

[The Great Oz]

So, how much did it cost the State to collect a few shekels? State employee investing 2 days of service pouring over your receipts being paid benefits and pension? Sounds like a winner.

These guys are sitting around getting paid anyway, might as well make them offset their costs.

A friend that works for the IRS says agents are rated by the amount of money they bring in, and the lengths they'll go to on any investigation is always in proportion to the amount of money at stake. An agent doesn't do more than send a letter to collect $200.