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Tax Time: Should You Ignore Taxes On Online Purchases?
from the maybe,-maybe-not... dept
Ah, it's tax time. We first mentioned this last month, but some states are getting a bit more explicit in reminding people that they're supposed to pay taxes on out-of-state items that they purchased - even if the payment is mostly on the honor system. They've added an extra line on tax forms where people can fill in just how much out-of-state purchases they made online. Of course, what it's really doing is confusing many taxpayers who have no idea what to put down on the additional line. Many are simply recommending that people leave that line blank - even to the point where one NY newspaper says: "They've got to be crazy, and you are, too, if you comply." Still, some tax professionals are warning that if you leave that line blank (claiming you didn't make any online out-of-state purchases) and you get audited, it's something they might focus on.
Reader Comments
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They Need Publicity
No one is going to pay this tax. The states would be well-advised to develop an RIAA-style program of waves of fear-inducing lawsuits to get the attention of the errant taxpayers.
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No Subject Given
How would they go about proving such a thing? Sure, they can also audit the postal system (doubtful), Fedex, UPS, and Airborn, but in order to get an accurate record of purchases, they would also have to cross reference that information with your bank account. All in all, it sounds like more work than these states are willing to do. Write about this again, when it's a real threat...
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Re: No Subject Given
Best advice is to leave the line blank.
If you place a zero in the line and you are audited, you can be accused of deception.
If you leave it blank, your not admitting or denying you purchased goods and services via the internet.
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