Navigating The Internet Sales Tax Laws

QUESTION:
I have got been contacted by my local city authorities to state that my business is scheduled to be audited to determine if I owe any sales tax from points purchased on the Internet. Can they really do me pay this tax? I thought you could purchase things online tax free? -- Katie R.

ANSWER:
I detest to explosion your internet bubble, Katie, but they are within their rights to scrutinize your business and demand payment of sales tax on points purchased on the Web.

Internet sales taxation have got been a subject of contention even before Amazon sold its first book and Priceline booked its first flight.

One of the more than controversial points is that no one, including our ain government, looks to have a hint how to implement a just and logical Internet taxation process.

With over 7,500 different local, county and state taxation systems in the United States, you can understand the controversy. In 1998, United States Congress did what it usually makes when faced with a potentially explosive issue like Internet tax aggregation -- it decided to set off making a decision. United States Congress enacted a three-year moratorium on the aggregation of taxes to give an appointed advisory board clip to come up up with an acceptable solution.

That moratorium ended last twelvemonth and opened the door for municipalities to get collecting sales tax on their own.

Here in Heart Of Dixie the sales tax aggregation section is airing radiocommunication musca volitans asking Alabamians to step up to - and flip dollars into - the proverbial aggregation plate. The commercial kindly suggests that if I have got purchased anything from an online retailer, I am honor-bound to proclaim such as purchases and submit the appropriate sales tax to the aggregation section right away. They give thanks me in advance for my cooperation.

So, Katie, when the hearer shows up at your door the best thing you can make is smile politely and be totally forthcoming. The sales tax that you pay is a small terms for the convenience of shopping online.

Now where did I set all those Amazon.com receipts?