Janitor Bob Posted February 18, 2012 Report Share Posted February 18, 2012 Client received a notice supposedly from State of Ohio Department of Taxation.....detailing all of my client's on-line cigarette purchases....and informing him of his sales/use tax balance due on these purchases. Does anyone know if this is legit or some scam? It looks legit and client confirms that he did make the on-line purchases and did not pay sales tax at the time of purchase. Client said that a few co-workers also received the letter....They all purchased cigarettes on line from the same vendor/web site. One co-worker had so many on-line cigarette purchases (he bought and re-sold them) that his stated amount due was almost $10,000. everything appears legit, but client asked me to check and see if anyone else had heard of this. Quote Link to comment Share on other sites More sharing options...
Margaret CPA in OH Posted February 18, 2012 Report Share Posted February 18, 2012 It's real and not new. http://tax.ohio.gov/divisions/communications/news_releases/news_release_050208.stm 2 Quote Link to comment Share on other sites More sharing options...
Jack from Ohio Posted February 19, 2012 Report Share Posted February 19, 2012 The same technology that lets him purchase them out of state easily, is the same technology that lets the State of Ohio find him. I am sure that the person reselling them claimed all the income on Sched C too?? :rolleyes: Quote Link to comment Share on other sites More sharing options...
JohnH Posted February 19, 2012 Report Share Posted February 19, 2012 He probably has nothing to worry about. I'm sure that when he shows his tax bill to all his buddies who bought the cigarettes form him, they will gladly chip in the tax money to help him round up the $10K. 1 Quote Link to comment Share on other sites More sharing options...
Margaret CPA in OH Posted February 19, 2012 Report Share Posted February 19, 2012 And we know he must have kept careful records of the purchasers and let them know how much money he was saving them - then. I wonder if he will continue this line of business... 1 Quote Link to comment Share on other sites More sharing options...
joanmcq Posted February 20, 2012 Report Share Posted February 20, 2012 oooh, bad enough to get caught for the cig and sales taxes, but selling unstamped cigs? Oh, I wouldn't want to be in his shoes. He should be happy if they only get him for the sales taxes. I'm sure they got the vendor's records and went after everyone in Ohio. In CA the taxes on cigs are over $2/pack and then there is the sales tax. Big bucks and easy to trace. It's not just Ohio that's looking for internet tobacco sales. Quote Link to comment Share on other sites More sharing options...
frazzled Posted February 20, 2012 Report Share Posted February 20, 2012 The State of Indiana is also checking for the online cigarette purchases and punishing accordingly. I had one client owe several thousand dollars. They decided it wasn't such a good deal after all! Quote Link to comment Share on other sites More sharing options...
JohnH Posted February 20, 2012 Report Share Posted February 20, 2012 Guess you could say all their savings went up in smoke... Or they got burned by the tax man... Or their plans are in ashes... Anybody got a match? 1 Quote Link to comment Share on other sites More sharing options...
jainen Posted February 20, 2012 Report Share Posted February 20, 2012 >>In CA the taxes on cigs are over $2/pack<< Not the kind I smoke. >>all their savings went up in smoke<< Yeah, the whole thing's a drag. Quote Link to comment Share on other sites More sharing options...
cred65 Posted February 20, 2012 Report Share Posted February 20, 2012 You're not referring to Hippy Lettuce, are you? Quote Link to comment Share on other sites More sharing options...
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