Sales tax

[electrofelon]

State homeland security monitors all social media.

Keyword hits on tax malfeasance, and manifestoes are forwarded to tax auditing authorities.

Failure to pay 7-yrs of back taxes owed results in confiscating your asset, and auctioning your house for price of the tax-lien certificate.

I didnt tax an hour of labor installing a ceiling fan, come and get me!

key words: tax fraud, avoiding paying sales tax, pocketing sales tax, spent sales tax money on beer, tax is unconstitutional, high taxes to support deep state, stocking up on guns and ammo, bunker, Hillary emails, pry taxes out of my cold dead hands, government waste, not giving cuomo a dime.......

 

[oldsparky52]

Let me tell you, NYS is hurting for money. I wouldn't mess with them. But unfortunately like my friend, if you start collecting now after all those years you could be opening a can of worms.

-Hal

I agree, NYS is coming after anyone they can.

 

[kwired]

In NC we have to categories by county

Similar here. Retail store or repair shop that only does work in the shop is simpler, all sales are typically in one tax jurisdiction, us contractors have to collect and remit any local tax at the place the exchange of taxable goods or services takes place.

When I was building my home (it is outside city limits and not subject to city sales tax) the local lumber yard would make deliveries of materials. They would charge state tax but not city tax on deliveries as that was the point of exchange. If I went in to the store to pick something up, they technically were supposed to charge city and state tax, I won't tell you that didn't always happen though and it might have been written up as though it were delivered.

 

[kwired]

So if you are the type of contractor that pays sales tax when he purchases his materials You may fall into a different category. But you better be creative & strategic with your invoice verbiage. But even then, you’re still vulnerable.
However, let’s say you purchase the materials for a panel replacement at Home Depot and paid the sales tax.
You gave your customer a quote of $1500 to replace the panel. Would you charge sales tax on top of the $1500 quote?
What I’ve learned is that “ time and material” invoicing can get you into a Jam with State tax . The way you format your invoice can get you in trouble in an audit. If You are itemizing materials even though you already paid the sales tax you may raise a red flag with the auditor. Pay the sales tax at the big box store and provide the homeowner with a quote seems to be the safer option.
Or become tax exempt and go that other option by passing it on to the customer.
like I said from the very beginning this is always a conflicting subject not only with contractors but even with accountants.
I spoke to CPAs, bookkeepers, enrolled agents, and I’ve learned that there is no solid answer. The tax system is a convoluted mess with many variables that may or may not apply to you.
By the way did you know that George Harrison of the Beatles said in an interview that he wanted to be in the electrician?
He also was inspired to write the song taxman.

As a general rule I like to quote customers a price that includes all costs and not surprise them with add on's that were not optional such as taxes permits, or third party services unless it was mentioned in the estimate that those things are not covered by the estimate and may involve other charges either by my company or directly to the provider.

As far as getting tax exempt status from a supplier, I do so with regular suppliers, but there occasionally is a purchase from some place that doesn't have a certificate for me. I just pay the tax and take a credit for that tax paid when filing sales tax return. There is no specific line on the tax return though there is a line for miscellaneous credits. But I adjust the taxable sales amount submitted by the applicable amount that was taxed instead. Main thing is keep track of what you did so if ever audited you can explain anything that may seem wrong. Some agencies may not care and will penalize you regardless, I think mine would still be at least a little lenient if I did the right thing even if it was done the wrong way.

 

[hbiss]

There's a reason I'm so anal about this. Before I married my wife some 26 years ago, she and her husband had a big roofing company. Actually the company was in her name. He dies. She has an attorney dissolve the corporation. Two years later we met and get married. Then she starts getting notices from the feds and state that she owes big money for unpaid withholding, corporation and sales tax. They were sending them to the husband at old company address and finally figured it out and tracked her down. So interest and penalties up the you know what. Since we are married, her problem is also now my problem. Fortunately we still had the old company books in the garage and basement. We had to get an CPA to come and go over whatever she could find in them that might help our case. She was able to get them to reduce the interest and penalties, but when the state started garnishing my wife's pay it was time to pay up, it's a losing battle. All in all, the money from the $500K life insurance policy that her husband left was mostly eaten up because of all this.

Lesson learned. I wouldn't want anybody to go through something like that. You don't want to get on their radar.

-Hal

 

[ramsy]

key words: tax fraud, avoiding paying sales tax, pocketing sales tax, spent sales tax money on beer, tax is unconstitutional, high taxes to support deep state, stocking up on guns and ammo, bunker, Hillary emails, pry taxes out of my cold dead hands, government waste, not giving cuomo a dime.......

Need something more original.
State Department of Homeland Security ignores those keywords, since oval office wore them out on Twitter.