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20 States Collecting Internet Tax
Patik writes "According to this AP article, twenty states, including New York and California, are "requiring taxpayers to declare any tax they owe on out-of-state purchases," targetting Internet sales. New York expects this to bring them $2.5 million this year while California expects $13 million. Many are cynical about the new push, saying taxpayers will simply leave the line on the tax form blank, though the IRS says they will audit any offenders."
It's only being made an issue due to the increased use of out of state mail order. That's what buying stuff over the net is. States have always required people to declare out of state purchases if the person declared at the time it was for delivery out of state.
My father's TV shop was 3 miles from a state line. He regularly had people come to buy TV and such to be delivered 'out of state' and so didn't have to pay him sales tax. They were supposed to declare it on their state tax form. Sure, few did. Sure, far more are doing this now. But it's nothing something new specifically aimed at the net.
"I may be synthetic, but I'm not stupid." -- Bishop 341-B
Well, I know many people who had run ins with the IRS, also you can search google for stories. It happens more than you think.
Police already make a profit on busting criminals, parking/speeding tickets, fines. Why wouldnt the State tax collectors go after people for money? Thats the whole point of the article.
Have companies report sales to states, so states can go after people. Treat everyone like criminals. It even states that in the article.
The states might have little to do now, but if theres money involved, expect it to get bigger.