IL Preparers

[ILLMAS]

Just wanted to see if anyone is remember to ask their clients of out state purchases, were no sales tax was paid. As you know the state of Il is broke and wants to collect every penny it can, so far most of my clients have been older couples that know nothing about computers and internet, but I have to ask them anyway.

[Margaret CPA in OH]

I ask, include the question on the organizer questionnaire and now, for electronic filing, send the pdf of the disclosure statement from Ohio that the client has read the 'not our fault' provision regarding refunds (OH Dept of Taxation is not responsible for misapplication of a direct deposit refund...)and the OH Electronic Filing Information where "Under penalties of perjury, I declare that to the best of my knowledge and belief, the Ohio income tax return .... true, correct and complete... Recently I also have been sending the input sheet for the Use Tax asking the client to sign if the answer is No to out of state, etc. purchases.

I apologize for all the CYA but I really don't want anyone audited to come back and say I didn't tell them. By the way, for Ohio it is internet, mail order, telephone or out of state purchases on which sales tax was not paid. Really annoying...

[Lion EA]

In CT, it includes sales tax paid to another state but at a lower rate -- gotta make upf the difference to CT's 6% rate. If left blank on the CT return, then no S&U tax is filed and collections can go back to the beginning of CT sales tax and is not limited by the SOL. So, I make sure to ask. CT has been getting very aggressive on S&U tax audits of small companies and individuals, expecially here in Fairfield County with a good number of NY commuters who might shop on their lunch hours and have items shipped home.

[Margaret CPA in OH]

That reminds me, KY also wants to make up the difference. I have a handful of KY residents and noticed that inclusion on the return. Soooo, I print out the sheet and ask for completion and signature on that, too. What a royal pain in the patooty! And I come off as the baddie.

[TAXMAN]

Anybody knows how hard Virginia pushes this issue? Most of my clients tell me NO, then I asked where they bought the NEW COMPUTER? Response: Walmart where else.

[Gail in Virginia]

Many years ago, Virginia announced their CU-7 form for filing these out of state sales taxes and made a lot of noise like they were really going to crack down on this uncollected source of revenue. As far as I have seen, however, it never was more than just a threat. When people make really large out-of-state purchases such as the materials to build a home, I have heard of the sales tax being levied. For small, everyday purchases such as all the books I have bought on Amazon, I have not heard of anything being done. Does this help?

[TAXMAN]

Years ago virginia had attempted to set a value at which time the form would be required. Have not been able to find that for a while. But with all the internet purchases these days a lot of tax has been avoided simply by not reporting howeve I have been seeing more and more of these co charge the applicable sales tax. Most still do not. Just look at all the ebay sellers. Most will say I am not a business. I know of one who made close to 200k selling coins. I didn't do return. Just responding.