If you make buys from wholesale distributors, do they turn in copies of the transactions to the IRS ??? In other words, does the IRS have copies of everything you buy during the year in order to determine what taxes are owed if they are not payed ???Or is the paperwork for the business's records only ??? We got a huge bill yesterday, way more than we had spent on stock altogether, just wondering how they figure it all out...
2006-09-12 06:46:29 · 4 answers · asked by mobileminiatures 5 in Business & Finance ➔ Small Business
A business that pays no sales tax at the wholesale level, must have a sales tax number from the state comptroller. All suppliers must have this exemption number. No tax is charged to the business.
It is then the responsibility of the business to report taxable sales and pay the sales tax, in the amounts collected from the end consumer.
There are no reports sent to the state by suppliers. If the business fails to pay the sales tax, it will be discovered and the business is penalized and required to pay.
If you are paying sales tax to the supplier, and that can be done, then the sales tax is a separate entry on every invoice to the business.
In that case, the business is not required to submit any sales tax reports or any payments to the state, since they have no tax number.
I have no idea what kind of bill you could have received. If you paid sales tax to the supplier, what bill?????
You may contact me if you wish.
2006-09-12 07:06:05 · answer #1 · answered by ed 7 · 1⤊ 0⤋
I don't think so. The amounts are recorded on the sales tax return that the wholesale distributor has to submit monthly. The whole amount they sold wholesale is recorded under a section specifically for non-tax sales with the reason for such. If I were you I would check carefully each item you bought to make sure they are billing you correctly.
2006-09-12 06:50:10 · answer #2 · answered by 1big teddy graham 4 · 0⤊ 0⤋
in line with the extra information component to your question... a minimum of one state (Michigan) is a great deal increasing use tax audits of businesses (i don't comprehend approximately persons). The auditor will look on the employer's depreciation schedules and many times used ledgers for the previous 10 years. On each merchandise for which you would be able to no longer or do no longer recent a receipt or bill that proves which you paid the revenues tax, you would be assessed use tax, outcomes and pastime.
2016-11-07 04:27:23 · answer #3 · answered by garion 4 · 0⤊ 0⤋
It's mainly for business records . .in case of an IRS audit. Since they arent charging you the tax. . they expect you to charge the End user the taxes. .
dont mess with the IRS. . they know everything..
but if u are looking for . . items @ wholesale prices . . check this out
www.geocities.com/nypremiums
2006-09-13 05:09:35 · answer #4 · answered by Dj Enigma 4 · 1⤊ 0⤋