Hey Bob,
I wasn't trying to be snarky or anything, my email was more from my surprise at
this guy getting reamed.
Your understanding of the issue is correct--states are only required to collect
if the company has a nexus in the state of sale. What state Departments of
Revenue are doing is going to the company and getting customer detail and
requesting payments those customers 'forgot' to make.
That's nothing new, they've just ramped up the activity. I think they're
looking for some heads on pikes, so to speak.
I was just thinking about it yesterday, then we were talking about lifts. I'm
thinking now I might go to the local dealer and see if they can match the
online price, or get close. That's a big-ticket individual item. I don't know
that the DoR would ever catch up with that sale, but that seems to be the
population they're examining--relatively few sales for 'larger' amounts by a
small-ish vendor they can intimidate.
This is not at all a scolding or anything of that nature, more just me being a
little wow-ed and not wanting any of y'all to find yourselves on the bad end of
one of those notices, or at least to be fully informed.
Oh, yeah, I'm an accountant.
------Original Message------
From: Bob Spidell
To: Scott Hall
Cc: shop-talk@autox.team.net
Subject: Re: [Shop-talk] Tig Welder
Sent: May 5, 2011 9:42 AM
My understanding--I'm not a lawyer--is that there is no law requiring any
seller to collect tax on items sold/shipped to
a purchaser from outside that seller's home state (but there will be
eventually--bet on it). I live in California, so
it is up to me to declare out-of-state purchases and pay the sales tax, which I
generally do (if I can find the paperwork).
Since you quoted me, I'll clarify: "The seller will not charge sales tax if you
live outside of IN, so it's up to you to
handle that as you and your taxing authorities see fit." That's what I meant
when I wrote that (yep).
Who 'lit up' your client? What was your client trying to pull off? Are you a
lawyer or an accountant?
Bob
On 5/5/2011 5:33 AM, Scott Hall wrote:
> "Free shipping and no tax if you don't live in IN. "
>
> I'm not "that guy", but for what it's worth we just had a client get LIT UP
>over this, bad. And I expect any other
> seller of fairly big-ticket items that ships a lot is probably drawing
>attention from the taxing authorities as well.
> Something to be aware of.
> _______________________________________________
>
>
--
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Bob Spidell San Jose, CA bspidell@comcast.net
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