|03-05-2004, 12:03 AM||#1|
Livin the dream
Join Date: Aug 2003
Location: Smoggy SoCal
States Bent on Collecting Internet Taxes
This is ripped from NTFS.com
"Remember all those gifts you bought online during the holidays? Now it's time to pay sales tax on them, at least so say the income tax forms of 20 states.
The latest to outstretch that revenue-seeking hand are New York and California, which this year added a line requiring taxpayers to declare any tax they owe on out-of-state purchases.
Though state revenue agencies similarly sought sales tax on mail-order items before the e-commerce boom of the late 90s, Internet sales have "really shined a spotlight on it and increased the urgency," said Harley Duncan, executive director of the Federation of Tax Administrators.
By law, residents are supposed to pay sales taxes to their states if they order books, clothing, computers and other items by mail or online from businesses based elsewhere.
"Nobody—very few—ever followed that rule," said Anthony Leone, a certified public accountant in Buffalo.
The National Governors Association estimates state and local governments will lose at least $35 billion this year from Internet sales.
The new tax return line, New York state officials say, forces taxpayers to confront their liability or potentially face audits that could uncover credit card statements and mounting tax debt.
But it's unclear whether that threat is enough."
Sitting on a beach, earning 20%