Notification of Sales Tax Collection

[Edward Tinker]

Amazon and several other companies have taken out state sales tax for some time and they just either keep it or forward it to the state....

[Olle]

Originally Posted by Edward Tinker

Amazon and several other companies have taken out state sales tax for some time and they just either keep it or forward it to the state....

This begs the question if, for example, NYS has the jurisdiction to come after me in TN if I don't pay it? There are several other issues with this, with tax rates and distribution being the biggest ones. Vendors have to send in their collected sales tax every month, so not only are you supposed to charge the correct tax for each sale, you are also supposed to send a payment to each state you have collected the tax for. If you sell to 50 states, you will have to write 50 checks before the 20th every month. Maybe I got it all wrong, but that part alone sounds ridiculous.

So far, nobody (not even my CPA) has been able to explain how the administration of all this is supposed to work. The more I think about it, the more I suspect that this is a step toward a federal sales tax with one rate and one check to send.