merkin Posted March 16, 2011 Share Posted March 16, 2011 I just got a call from my accoountant that said Illinios is asking for amount of internet purchases and wants you to pay the state sales tax on it. This is for purchases over the internet from out of state companies that don't charge illinois tax. How do they prove it, outside of auditing you to death or pulling your amazon account. Do you just throw them a bone for a couple hundred bucks ( I really have no idea) and pay the 7% of it? Maybe it is time to move out of the peoples republic of chief Illini, but where do you go? Quote Link to comment Share on other sites More sharing options...
Guest " " Posted March 16, 2011 Share Posted March 16, 2011 I looked at the sales tax legislation for your state, and you do not qualify for any of the exclusions. So you should comply with your states regulations AND determine if the cumulative totals put you in a better tax position on your federal returns. Quote Link to comment Share on other sites More sharing options...
Moderators dtel Posted March 16, 2011 Moderators Share Posted March 16, 2011 That sux " Maybe it is time to move out of the peoples republic of chief Illini, but where do you go?" It will probably end up like that everywhere, the government can smell that quarter in your pocket. Quote Link to comment Share on other sites More sharing options...
ZAKO Posted March 16, 2011 Share Posted March 16, 2011 To avoid paying tax,s is legal,,,To evade paying tax,s is illegal...Throw them a bone.. Quote Link to comment Share on other sites More sharing options...
BigStewMan Posted March 16, 2011 Share Posted March 16, 2011 stay out of california, they do it to. Quote Link to comment Share on other sites More sharing options...
JJkizak Posted March 17, 2011 Share Posted March 17, 2011 In this economy I doubt they have the funds to pursue the millions of people in your state who do not report internet purchases unless someone hates you and reports you. JJK Quote Link to comment Share on other sites More sharing options...
Thaddeus Smith Posted March 17, 2011 Share Posted March 17, 2011 what's the internet? Quote Link to comment Share on other sites More sharing options...
DrWho Posted March 17, 2011 Share Posted March 17, 2011 Do you have to pay sales tax on items purchased in another state? (like if you physically go there?) This sounds like a violation of the federal laws put in place way back when the states were charging embargos and whatnot between each other. Do you have to pay state tax on goods purchased in other countries? Are the laws internet specific? What if you used a phone to place the order, or a letter? Quote Link to comment Share on other sites More sharing options...
Thaddeus Smith Posted March 17, 2011 Share Posted March 17, 2011 this is what's going on ... http://www.nytimes.com/2011/03/14/technology/14amazon.html Quote Link to comment Share on other sites More sharing options...
BigCliff Posted March 17, 2011 Share Posted March 17, 2011 From what I read Illinois is trying to get sales taxes from sellers that have affiliation in the state of Illinois. If you buy it from out of state and they have no affiliation (Like warehouses or stores etc) in the state of IL then you do not have to pay. Some of the bigger sellers are trying to fight this with the state of IL. Quote Link to comment Share on other sites More sharing options...
BigStewMan Posted March 17, 2011 Share Posted March 17, 2011 i think the states view it as you are cheating them out of the state sales tax, so they've determined that they're going to try to get those taxes anyway. not sure; but, a co-worker told me that (in California) this is nothing new, she said it's been a law for decades. Quote Link to comment Share on other sites More sharing options...
SilverSport Posted March 17, 2011 Share Posted March 17, 2011 as I recall you ALWAYS (in Illinois) were supposed to pay Illinois sales tax to the state when making purchases outside the state (like on the errornet) but it was voluntary...of course you were supposed to volunteer (which kind removes the volunteer portion doesn't it???)...I did see something about this when I did mytaxes this year... Bill Quote Link to comment Share on other sites More sharing options...
BigCliff Posted March 17, 2011 Share Posted March 17, 2011 "I KNOW NOTHZING" as Sargeant Schultz would say [:|] Quote Link to comment Share on other sites More sharing options...
Guest " " Posted March 17, 2011 Share Posted March 17, 2011 There are two issues here....1) is the new visibility discussions about sellers collecting sales tax in state where they don't have a NEXUS and what qualifies as a NEXUS and/or an affliliation. 2) The fact that absent the discussion in 1) above, just becuase the tax was not collected by the seller, did not mean you never had to pay the tax.....tax laws have been on the books for decades... Quote Link to comment Share on other sites More sharing options...
jacksonbart Posted March 17, 2011 Share Posted March 17, 2011 I would tax the nude women in my bed. No - not tax.... Oh damn!... What is the word?...... Oh - 'welcome'. Quote Link to comment Share on other sites More sharing options...
Guest " " Posted March 17, 2011 Share Posted March 17, 2011 The tax guide lines vary from state to state. In our example, the guide lines a focus on the residents responsibility to pay a sales tax on goods purchased. There are a few exemption categories. It really does not matter what the avenue of the sales transaction is, just that there was a sales transaction. The question about where you physically were when you made the purchase also varies from state to state. In one state there is an 8% sales tax and you live in that state, but you purchased and item in an adjoining state in which the sales tax was 3%. You owe the state that you reside in 5%. Quote Link to comment Share on other sites More sharing options...
Coytee Posted March 17, 2011 Share Posted March 17, 2011 I doubt they have the funds to pursue the millions of people in your state who do not report internet purchases unless someone hates you and reports you. Well, I hate him so I might have to report him... Ok, I don't really hate him... just strongly dislike him. Well, maybe dislike is too strong of a word... actually he's a pretty cool guy except for his tax evasion tactics. I have several children, unknown to me, who reside in Illinois and I'm sure they can use the food stamps. Ok, maybe I won't report him. Trust me. [:^)] Quote Link to comment Share on other sites More sharing options...
merkin Posted March 18, 2011 Author Share Posted March 18, 2011 It is not just internet purchases it is any purchases from an out of state vender that does not collect Illinios tax. I live on the Iowa boarder so I noticed it on car purchases. The local dealers just over the river collect Illinios tax so that you can get the car tittled and registered. But the mall on the Iowa side does not collect Illinios tax just Iowa tax. If I ordered the same product over the internet or phone and had it shipped to me from some states I may or may not pay their local sales tax and more likely than not pay Illinios sales tax. The real rub since the kremlin in springfield is out of money is that the last few years they are charging tax on all the venders that my wife uses in her medical practice. I think it is 3%on all medical supplies and medicine and 7 % on all other supplies like office supplies that are bought out of state and the vender doesn't charge Illinios tax. Like some medicaL drape comapny in Jersey wants to keep an Illinios tax table and pay quarterly statements to Illinios. You have to keep all of your billing receipts for the buissness and store with your tax forms just incase you get audited in the next 7 years. Didn't there use to be like a wholesale price without state taxes on supplies and products used for resale? Now it is like a VAT tax. The people that are hurt by this are the consumers. Prices go up to cover the tax and the cost of the extra book keeping. So with each office visit the patient pays more and then the kremlin in springfield can cry about the rising cost of healthcare. Quote Link to comment Share on other sites More sharing options...
Gilbert Posted March 19, 2011 Share Posted March 19, 2011 i think the states view it as you are cheating them out of the state sales tax, so they've determined that they're going to try to get those taxes anyway. not sure; but, a co-worker told me that (in California) this is nothing new, she said it's been a law for decades. I was told same when I lived in Oklahoma, and that declareing such internet/out-of-state purchases was totally dependent upon the honor system. Quote Link to comment Share on other sites More sharing options...
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