$700,000 sold in 3 days!

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ed4copies

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Yep, the Indiana Department of Revenue just sent Dawn a bill for the sales tax on a three day show. $42,000 plus some "small change". The tax rate was 6%, so they estimate her sales at 700G's.

Those of you who have asked about Sales tax, beware!!! Every large show is now forced to submit a list of exhibitors to the state DOR. Then, if you have not filed (or, in this case, even if you HAVE filed and paid), you will be sent a "friendly reminder" demanding payment of some exhorbitant amount of money.

We have experience with Revenue Departments from MY business and have adopted a modus operandus that makes this LESS of a problem. ALWAYS send your check paying sales tax via "Return receipt requested" mail. This gives you a card that says what date the check was received and WHO picked it up. In spite of submitting this information to Indiana several weeks ago, we STILL received the above. Additionally, in the last show we did there (we are only in Indiana for ONE show a year), one of the agents for DOR stopped by our booth to announce to one and all that we had NOT paid for last year. (Mental note, next year we will carry all documentation with us so we can PROVE him wrong).

So, we will be writing several letters to the Dept of Tourism, Revenue, Governor, etc. However, I want to warn EVERYONE here: Had we not paid the PROPER amount, and filed the return TIMELY, we MIGHT actually have to go to tax court in Indiana to FIGHT this.

ALWAYS FILE A RETURN!!! PAY THE SALES TAX!!! And, to protect yourself, carry the "green card" (return receipt) and paperwork with you to the next show you do in that state!!!!!

Oh, our real sales were less than 1% of the above number. It rained consistently for four days and not many showed up.
 
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Gary Max

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Ed ---I started off paying sales taxes with postal money orders many years ago and still do. We make a packet for each show and I include the carbon. I just figured it was easier than trying to find the check # or what account.
You are right about paying the tax----states rely on the money and want every cent they can get.
Oh-- our sales taxes have never been that much----LOL
 

Rifleman1776

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Every state has similar policies. Years ago I got a tax number for a business I intened to start. It never opened and I never filed monthly sales tax reports (a mistake). One day I got a bill for "surmised" sales and was supposed to pay the back sales taxes. I had to hire a lawyer (expensive). He negotiated a much smaller settlement. Still, the experience ended up costing me about $1000.00. Whatever you do, the rule is: CYA. [:p]
 
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Pennsylvania has a web site to pay sales taxes online. For most businesses it is mandatory to pay online, while "crafters" can still pay by mail. Check with your state, it may have the same option. In the long run it is actually easier paying online with a guaranteed confirmation of payment taxes.

Ed, do you have different sales tax number for your business sales and your show sales?
 

ed4copies

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Originally posted by Ron in Drums PA
<br />Pennsylvania has a web site to pay sales taxes online. For most businesses it is mandatory to pay online, while "crafters" can still pay by mail. Check with your state, it may have the same option. In the long run it is actually easier paying online with a guaranteed confirmation of payment taxes.

Ed, do you have different sales tax number for your business sales and your show sales?

ABSOLUTELY, Ron

The crafts are a separate business, with all separate ID's. "The Glass Lass" holds seller's permits in Wi, Il and IN - all separate, of course. Illinois actually PHONES Dawn with any problems - AMAZING, REAL PEOPLE!!!! These problems are resolved very QUICKLY!
 

gerryr

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Glad I don't have to worry about that, no sales tax in Montana. The legislators refuse to even consider a sales tax, claiming tourists will simply stop coming here. Since AZ has such high taxes, I'm sure tourists never go there.
 

ed4copies

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Gerry,

Careful, once you HAVE a sales tax, RAISING it is incredibly easy. Wisconsin in now discussing going from 5 to 6 percent, a 20% INCREASE. But, of course, they are "selling" it as a meager 1 percent rise - a lousy penny on every dollar (until you buy a car, or large TV or refrig) you get the idea.
 

TBone

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I spent 24 years working with the DOR and I can tell you that estimated sales are always high on purpose. In this state, the burden of proof is on you to prove you didn't sell that much, ie guilty until found innocent. However if you can prove how much you sold, they then have to prove different. Also, I would suggest never using postal or any other kind of MO. If your $ gets credited to the wrong account, you need the numbers from the cancelled MO to prove you paid it. It was a nightmare to track postal MO's
 

ed4copies

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TBone,

Actually, we have already provided them with a copy of the check and the numbers to which you refer, when they originally asked for it - weeks ago.

And, I understand overestimating, but $700Grand is BS!!!!!!!!!!!!!!!!!!!!

(no personal attack meant!)
 

cozee

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AMAZING, REAL PEOPLE!!!! These problems are resolved very QUICKLY!

Oh yeah, they are real alright. Back when I was airbrushing t-shirts fulltime, the state tax people here in Illinois are so amazing they would show up at the end of each day with thier hands out asking for the taxes due!!!!
 

TBone

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Originally posted by ed4copies
<br />TBone,

Actually, we have already provided them with a copy of the check and the numbers to which you refer, when they originally asked for it - weeks ago.

And, I understand overestimating, but $700Grand is BS!!!!!!!!!!!!!!!!!!!!

(no personal attack meant!)

Don't worry about attacking, after that long with DOR you can't call me something I haven't already been called [:D]

The MO response was more for Gary Max. They can be a bear to get a copy.

I agree that $700K is nutz. But it is usually determined by the individual auditor and some are butts and get off on this. This is usually used for people who WON'T file and it's done to force them to file within 30 days. Normally a proposed assessment that you have 30 days to contest with corrected reports (for NC). In NC, if you file the reports, he would have to show his basis for coming up with this figure. IE... where he found a record of you purchasing enough blanks or kits.

One other note. In some states (including NC) it's called Sales and Use tax. If you buy something from outside the state (on which you don't pay sales tax) and have it shipped in (like internet) you are taxed for it's use in the state. Amazingly enough, it's the exact same rate as sales tax
 

ed4copies

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Originally posted by jaywood1207
<br />Hmmmm. I'd love to see 5 or 6 or even 7%. Our taxes come out to 14% in Ontario between the provincial sales tax and the goods and services tax.

Didn't know that. Is that part of how they provide you government health insurance???
 

wood-of-1kind

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Originally posted by ed4copies
<br />
Originally posted by jaywood1207
<br />Hmmmm. I'd love to see 5 or 6 or even 7%. Our taxes come out to 14% in Ontario between the provincial sales tax and the goods and services tax.

Didn't know that. Is that part of how they provide you government health insurance???

Not really. The 14% tax(es) are comprised for 8%provincial tax(varies between provinces) and the 6% is Goods & services tax(same for all provinces). Our heath care is not as great as what outsiders deem it to be. We are an overtaxed nation, but, in saying that it's still the greatest country in the world to live in. Just don't get sick in Canada.

-Peter-
 

ed4copies

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Originally posted by wood-of-1kind


Not really. The 14% tax(es) are comprised for 8%provincial tax(varies between provinces) and the 6% is Goods & services tax(same for all provinces). Our heath care is not as great as what outsiders deem it to be. We are an overtaxed nation, but, in saying that it's still the greatest country in the world to live in. Just don't get sick in Canada.

-Peter-

Interesting, Peter. I have heard many US citizens say the same thing, i.e. "Overtaxed, but the greatest country". National pride is "a good thing" (to quote that great felon philosopher, Martha Stewart)!!!
 
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