Tax Mistake

[skipperbrown]

I used to work in this field. Your state auditor most likely audited the books of your dealer (known as a sales tax audit, duh) and asked for a list of all sales to your state. The dealer provided a list of the sales/invoices to the auditor and seeing no tax collected on your invoice, the auditor is after you. Your best bet is to plead ignorance and pay the bill. See if you can get an agricultural exemption that will reduce the tax. I really doubt the auditor went the route of finding you through the UCC filing (Does it include a copy of the sales invoice? I don't think so.), but they are very clever. If you really want to know how they found out, call your dealer, ask to speak to the controller and ask her/him if they were audited by your state recently. I think the answer is yes.

Call the state, plead ignorance, try to get the ag exemption, and pay the tax. Don't mess w/ them b/c they can make you very miserable. At this point they will probably waive the penalty (If there is a penalty, respectfully ask them to waive it.).

Your only out is that you thought the dealer collected the tax from you. However, if the invoice sales tax line is empty, so is your argument.

To avoid this problem in the future, go at least 2 states away to purchase your stuff! That way the auditor is less likely to pay your dealer a visit.

mark

 

[buppy69]

The IRS has nothing to do with state sales tax.

Eugene

 

[cowboydoc]

It's not a federal offense. It's only a state offense. The feds have nothing to do with state sales tax.

 

[gobbler]

What is it with people trying to “get out of paying” taxes. Now, don’t get me wrong, I hate paying them too, but I just suck it up and pay like most American’s. After all, there is supposed to be some good to come from taxes (although I wonder sometimes).

Here in Missouri, you can fill out some state form to exempt farm equipment from sales tax that’s used in the production of saleable crops. My dealer brought this to my attention, and since the law is written so broadly, he said I could qualify. Just sell a few tomatoes to your neighbor, he said. Even people with small market gardens qualify.

Well, I just didn’t feel right doing that, so I paid the taxes. Now I’m under no pressure to produce a bumper crop of tomatoes /w3tcompact/icons/laugh.gif

Jim

 

[Luvbigboytoys]

When I bought mine this year the dealer asked me if I filed a schedule F on my federal return. When I said, "Huh, what's that?" He said never mind and put the sales tax on the invoice. I guess that is what they use in Illinois to determine if you have to pay sales tax.

 

[GarageSmoker]

Doesn't everyone at least try to grow some hay? I know I am going to try hard on some of my land.

GS

 

[Kodiak]

No I don't have a hay crop. But I do have lots of things growing here that come under the title of "hey whats that".

 

[GarageSmoker]

A Ha! Experimental Crops! Even better yet. May even qualify for a federal grant, not just a sales tax exemption.

GS

 

[bmac]

gobbler, while I don't disagree with you, I will pose these questions:

1. Have you ever made a purchase over the internet or via a mail order catalog?

2. If you answered "Yes" to question # 1, were you charged sales tax?

3. If the answer to question #2 is "No", did you report the purchase to your state revenue department?

4. If the answer to # 3 is "No", why not?

I think its easy to find fault with people who travel out of state to avoid paying sales tax on large purchases. But many consumers do business with out-of-state companies on a regular basis, either via the internet or telephone, and are not charged sales tax. I've yet to hear of an individual who ponies up with the state (voluntarily) for these purchases. "But that's different!" one might respond. Only in the amount due. The principle is the same. It would be hypocritical to denounce one and not the other. There are no shades of gray in ethics.

Reminds me of the one (sorry if you've heard it. Its been around awhile) about the guy who approached a young lady and asked if she would spend the night with him for $10,000.

"You bet!", she replied.
"Well, how about $10?", he asked.

She slapped him in the face in anger. "What kind of a girl do you think I am?"

Replied the man, "We've already established what kind of girl you are. Now, we're just negotiating."

Gobbler, the point of this was not directed to you. It just fit best as a response to your post.

EDIT: After reading subsequent posts re: taxation and internet sales, my analogy appears to have been weakened. As I don't know the specific limitations and exclusions of the federal tax laws regarding interstate sales, I will withdraw the analogy. I did not delete the post as it would make some of the subsequnt replies difficult to follow and because I really like my joke (even if it is old).

 

[GarageSmoker]

For whatever reason Internet sales have been expressly exempted from tax. I think it is to help the industry evolve. Some states do not like this, and some vendors don't even follow it, but (and I believe I am correct on this) the exemption was extended just recently.

GS