Why is it when TV commercials are selling things they only charge sales tax to certain states if any, but I am being told that I am required to collect it in all states that have sales tax? Every time I ask anyone in any tax office I get a different answer. Am I really required to do this in states other than my own? I had e-mailed some of the states who sent me info in the mail and some are even requiring me to file a tax return in their state once a year whether I have sales in that state or not? Is that legal? I have no physical presence in their state and it was my understanding in the beginning that my only obligation was to the state I lived in and had a physical business presence in. I feel like I am getting answers from people who don't know what they are talking about. I have no problem sending them their tax money if I collect any but filing a return even if it's zero in not my state? Any advice would be appreciated. I can't seem to get straight answers anywhere.
2006-06-09 16:26:44 · 5 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
All of the other previous responses that say you are only obligated to collect in your state are correct.
The reason you are getting conflicting answers is that most states are trying to get as much revenue as possible.
You can read more by following the link below.
2006-06-09 16:44:24 · answer #1 · answered by just_the_facts_ma'am 6 · 3⤊ 0⤋
The only time you have to worry about collecting tax for other states is if you're selling cigarettes, which have their own sets of laws. Other than that, you are only obligated to collect sales tax for the state that your business has a physical presence in. If you so choose, you may collect sales taxes for other states, but you are not obligated to. If you have a doubt, all of the tax information for each state will tell you this. The other states can ask you to collect the tax, but only your home state can legally require you to do so.
2006-06-09 23:37:31 · answer #2 · answered by Sim S 2 · 0⤊ 0⤋
My understanding, and I am not an expert, is that you only charge the sales tax for sales in your state, though I can see how it is getting confusing.
I also understand that the government is trying to find a way to charge a government tax on all online sales, but hasn't figured out a way to enforce it yet. That could be an urban legend, but it sounds like it could possibly be true so stay abreast of tax laws and the government.
Your own states franchise tax board should have the final say on what taxes you charge in your business.
2006-06-09 23:37:59 · answer #3 · answered by arlimyst 2 · 0⤊ 0⤋
The general rule is that you only have to charge sales tax in states where you live and/or have a physical store. If you operate physically in Illinois, that's where you have to charge sales tax.
2006-06-09 23:31:22 · answer #4 · answered by tkron31 6 · 0⤊ 0⤋
you only have to charge states where you have a physical presence/location in. This is from a close friend that is an accountant/
I am not a pro on this, so please seek professional advice on this before you decide what to do.
2006-06-09 23:29:30 · answer #5 · answered by Anonymous · 0⤊ 0⤋