Members CIC Posted January 9, 2020 Members Report Posted January 9, 2020 5 hours ago, JLSleather said: It's not a question of where YOU are... it's a matter of where the BUYER is. I get this part of it, and I should tell you that I don't deal in leatherwork. I've joined as a hobby. I'm making the things I want and can't find anywhere. But as a tax licensee, I won't collect any tax that I'm not mandated to collect, and if I don't receive a levee notice from the state issuing the license, there is no liability on my part. Was there some 'Internet Sales Tax Bill (as in law)' that was passed in the last few years? I just can't imagine the legal mechanism that would require me to collect sales tax for another state. Like, really, if you're not in their state, they can't bring a charge against you even if you ship into their state. Tell me tru... Quote
Members Hildebrand Posted January 9, 2020 Members Report Posted January 9, 2020 @CIC as a business person(not leather, this is a hobby) all I can say is good luck. Just because you didn't get a notice doesn't mean you don't have to collect it. If you look ignorance of the law is not a legal defense in most instances. If you are in business it is on you to know the laws. Todd Quote
Mark842 Posted January 9, 2020 Report Posted January 9, 2020 1 hour ago, CIC said: I get this part of it, and I should tell you that I don't deal in leatherwork. I've joined as a hobby. I'm making the things I want and can't find anywhere. But as a tax licensee, I won't collect any tax that I'm not mandated to collect, and if I don't receive a levee notice from the state issuing the license, there is no liability on my part. Was there some 'Internet Sales Tax Bill (as in law)' that was passed in the last few years? I just can't imagine the legal mechanism that would require me to collect sales tax for another state. Like, really, if you're not in their state, they can't bring a charge against you even if you ship into their state. Tell me tru... Wayfair Vs South Dakota. Google it. On June 21, 2018, The United States Supreme Court ruled 5-4 in South Dakota v. Wayfair that states can mandate that businesses without a physical presence in a state with more than 200 transactions or $100,000 in-state sales collect and remit sales taxes on transactions in the state. Since that ruling 43 states have passed legislation and the rest are in the process. Your bigger venues like eBay , Amazon, and Etsy are collecting for the states in question whether you are above that threshold or not if you're registered as a business seller. If you are not registered as a business seller and you do over $20k and over 200 transactions in a calendar year, you will be either registered as a business seller the following year or you will not be allowed to sell. If you are selling on your own website it is kind of the wild west right now. Nobody really knows what it going on if you are selling under $100k to the states collecting (which will be all of them this year). That is not $100K total from all states, that is to each state. That put us in the position this year where we are bigger enough to be notices by some states and not big enough by some. We have elected to now collect sales tax for all states and submit them as we have decided we don't want to find out in 5-10 years that we owe a massive back tax bill. California is currently trying to collect back taxes on Amazon sellers that have sold over $100K in past years and for some the back taxes are adding up to millions. Quote
Contributing Member JLSleather Posted January 10, 2020 Author Contributing Member Report Posted January 10, 2020 4 hours ago, CIC said: and if I don't receive a levee notice from the state issuing the license, there is no liability on my part. Uh, okay. I have in the past received a tax bill for 3 years back. I don't recommend NOT paying that, but each his own. Just saying there's a curve ahead, up to you if you take the turn or not. Would be very simple if it was just one set amount. Would even be bearable if it was 43 rates - one for each state. But it's way beyond that.... breaks down by city, county, even zip code (and one city might have a dozen or so zip codes). It's not impossible, but it IS a pain. There are "services" to take care of all of that for you, but in the end it's YOU liable anyway, and I really don't like being responsible for it while allowing somebody else to do it. Quote "Observation is 9/10 of the law." IF what you do is something that ANYBODY can do, then don't be surprised when ANYBODY does.
Members BigSiouxSaddlery Posted January 10, 2020 Members Report Posted January 10, 2020 12 hours ago, JLSleather said: Would be very simple if it was just one set amount. This^^^ 12 hours ago, JLSleather said: I really don't like being responsible for it while allowing somebody else to do it. And this^^^ . . .In ALL things, and even more so the older I get!! Quote
Members CIC Posted January 10, 2020 Members Report Posted January 10, 2020 (edited) 16 hours ago, JLSleather said: There are "services" to take care of all of that for you, but in the end it's YOU liable anyway, and I really don't like being responsible for it while allowing somebody else to do it. It is amazing how many people are happy to pay 'Wells Fargo' $285/pay-period to process their payroll. I've done well empowering businesses with programs like Peachtree or MAS and helping them to set it up properly. Edited January 10, 2020 by CIC copy edit Quote
Members CIC Posted January 10, 2020 Members Report Posted January 10, 2020 19 hours ago, Mark842 said: Wayfair Vs South Dakota. Google it. On June 21, 2018, The United States Supreme Court ruled 5-4 in South Dakota v. Wayfair that states can mandate that businesses without a physical presence in a state with more than 200 transactions or $100,000 in-state sales collect and remit sales taxes on transactions in the state. Since that ruling 43 states have passed legislation and the rest are in the process. Your bigger venues like eBay , Amazon, and Etsy are collecting for the states in question whether you are above that threshold or not if you're registered as a business seller. If you are not registered as a business seller and you do over $20k and over 200 transactions in a calendar year, you will be either registered as a business seller the following year or you will not be allowed to sell. If you are selling on your own website it is kind of the wild west right now. Nobody really knows what it going on if you are selling under $100k to the states collecting (which will be all of them this year). That is not $100K total from all states, that is to each state. That put us in the position this year where we are bigger enough to be notices by some states and not big enough by some. We have elected to now collect sales tax for all states and submit them as we have decided we don't want to find out in 5-10 years that we owe a massive back tax bill. California is currently trying to collect back taxes on Amazon sellers that have sold over $100K in past years and for some the back taxes are adding up to millions. Thanks man, this is what I was asking after. And the part I like is where it says that 'states CAN mandate...' Now it is up to the state to pass legislation. So far, none of the states I'm licensed in have done so, but I'm sure it is a matter of time. Quote
Contributing Member JLSleather Posted January 10, 2020 Author Contributing Member Report Posted January 10, 2020 12 minutes ago, CIC said: So far, none of the states I'm licensed in have done so, I don't think you understood what he's telling you. But... 3 hours ago, BigSiouxSaddlery said: In ALL things, and even more so the older I get!! Including the web page. And NOT doing it particularly well -- I'm aware that I have forgotten more than some were ever aware of. But it does work (for the moment). I just can't seem to bring myself to pay somebody else to set it up (though I did look into that) when in the end I have to supply and approve the content anyway! Quote "Observation is 9/10 of the law." IF what you do is something that ANYBODY can do, then don't be surprised when ANYBODY does.
Members BigSiouxSaddlery Posted January 10, 2020 Members Report Posted January 10, 2020 3 hours ago, JLSleather said: Including the web page. And NOT doing it particularly well -- I'm aware that I have forgotten more than some were ever aware of. But it does work (for the moment). I just can't seem to bring myself to pay somebody else to set it up (though I did look into that) when in the end I have to supply and approve the content anyway! Same!! Which is why my webpage looks like a dinosaur and hasn't been updated since like 2006. The lady that originally set it up doesn't do it anymore, and I've thought about scrapping it entirely, but I DO get business through it still, and I don't want to give up my domain name. But if I could find someone to do a professional job, and put together something that doesn't look like a teenager did it, and not charge five times what I charge to do something that has taken me my entire life to learn how to do, well, I might think about it. Quote
Members CIC Posted January 10, 2020 Members Report Posted January 10, 2020 Gee, I didn't mean to give the impression that I take advantage of people. Maybe I didn't 'splain it right. Let me try again. 1) I specify a suitable double-entry accounting software title (or package.) Not mickey-mouse junk. 2) I construct and test the necessary calculations for all applicable taxing authorities, not just sales & payroll. 3) I oversee & assist in entering employees. 4) I Check each calculation for accuracy. This process has yet to exceed $500 unless an inordinate amount of hand-holding 'is insisted upon.' I hope this improves your opinion of me. Quote
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