Get ready to pay more state tax

That's what we tried to get our accounting teacher to tell us in college. I would have really paid attention then!
There is a reason college accounting teachers teach and don't practice. Theory is great and all that but what we're talking about here is where the real rubber meets the real road. wink.gif
 
That's because show me a tax law and I'll show you a way around it. That's why I make the big bucks. :bounce:
Yep, but what folks don't realize in Georgia is that we have a duel system, sales tax and use tax. Legally, if you buy something online and the sales tax is not collected, you the purchaser are required to file and pay the same rate to the State in the form of a use tax. Now, I can tell that compliance with use tax reporting and paying is in the low teens, but if it is a big enough item, the government is trying to find you.
 
There is a reason college accounting teachers teach and don't practice. Theory is great and all that but what we're talking about here is where the real rubber meets the real road. View attachment 933660
I actually taught at the local college for a year or so. Those youngin's couldn't handles actual stories and my love (sarcasm mode on) of the IRS. One of my students is now an upper level IRS supervisor. She hired me to handle her parents estate planning and we laugh about her getting her eyes opened in my class. She also admitted that I was right.
 

jimbo4116

Retired Moderator
what I see happening is a 3rd party purveyor that you report your sales for a certain zip code. You submit the sales tax to them, and xxx amount per month to handle the reporting and payment. Much like a payroll company like ADP operates. The purveyor would have to provide software that has all the taxes for all the jurisdictions you sell in, and the software would tell you what tax rate to collect.

Yep, Amazon is ahead of the game, and there will be a time frame for catching up, but it will happen, and it will be fairly pain free after a shake out period. Right now, the state of Georgia GTC site lists all the taxes charged at a city,county,state level. I would think all states have some kind of software that does the same. The trick will be to put it all together into one package, and keeping the rates current.
See Post #34 above. They already exist. We use Avalara. Its stock went up 30% yesterday.
 
Make all your sales FOB your plant and charge your in state and out of state customer your county tax rate. This prevents you from having to report tax to multiple states.
 
Yep, but what folks don't realize in Georgia is that we have a duel system, sales tax and use tax. Legally, if you buy something online and the sales tax is not collected, you the purchaser are required to file and pay the same rate to the State in the form of a use tax. Now, I can tell that compliance with use tax reporting and paying is in the low teens, but if it is a big enough item, the government is trying to find you.
Yep. The only time I've ever seen a use tax audit was when I was working as the accounting dept manager for a big company that sold cutting and sewing room equipment and then it was in conjunction with their annual sales tax audit. They would skin us for $70-80K each year.

The likelihood of them going after a 1 man band S Corp is so low it's not funny, especially if you are filing and paying sales tax without any hiccups.

Over the last 30 years I think I had one sales tax audit and that was on a liquor store that was moving a lot of booze and beer and they wound up getting zero and didn't come back.
 

drhunter1

Senior Member
That's because show me a tax law and I'll show you a way around it. That's why I make the big bucks. :bounce:
I'd rather pay you to show me how to not give it to the government.
 
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