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Thread: Melonie...NY state tax question

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    Default Melonie...NY state tax question

    I don't dance anymore, but am doing my taxes as usual...I didn't notice this on last years NY State tax form, but am I understanding this correctly.......if you purchased items off the internet, through catalogs etc. that were not located in NY State that were less than $1000 each and you didn't pay any tax on said items they want you to pay up?
    Say you bought $100 in clothes from an internet site and the items were shipped from CA to you in NY and you paid shipping but no tax.....NY State wants tax on these things?
    I do some internet shopping but haven't kept reciepts and can't recall which items I paid tax on and which ones I haven't.
    Is this new? The Sales and Use tax?

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    Default Re: Melonie...NY state tax question

    Quote Originally Posted by former_LV_dancer
    I don't dance anymore, but am doing my taxes as usual...I didn't notice this on last years NY State tax form, but am I understanding this correctly.......if you purchased items off the internet, through catalogs etc. that were not located in NY State that were less than $1000 each and you didn't pay any tax on said items they want you to pay up?
    Say you bought $100 in clothes from an internet site and the items were shipped from CA to you in NY and you paid shipping but no tax.....NY State wants tax on these things?
    I do some internet shopping but haven't kept reciepts and can't recall which items I paid tax on and which ones I haven't.
    Is this new? The Sales and Use tax?
    Yes New York has been really aggressive about collecting their state taxes from internet sales for a couple of years now. On the state tax return is a new line for NY state sales and excise taxes which were supposed to be automatically collected when making credit card purchases over the internet but which weren't deducted and forwarded to the state of NY by the internet merchant.

    I am told that the New York state tax people have been going back through credit card records, and they have been sending some whopping tax bills to people who failed to include uncollected NY sales and excise taxes from internet purchases on their NY state tax returns. For example, one 'regular guy' in NYC received a $1500 bill for uncollected NY state excise taxes on cigarettes he bought via the internet. I'm fairly sure that the amount of NY state tax dep't interest is directly proportional to the dollar amounts spent with particular internet merchants from the credit card records. In other words, if you purchased a plasma TV for $5000 over the internet, it's much more likely to attract NY state tax dep't attention than if you spent $50. Of course, with each passing year, NY has been beating on the major internet merchants to automatically collect and forward NY state sales and excise taxes at the time the internet purchase is made, to the point where in 2005 virtually all of the major internet merchants did collect and forward NY state sales and excise taxes at the time the sale was made.

    Personally, I think that I would up paying in around $500 in uncollected NY taxes on internet sales in 2003 - which dropped to around $150 in 2004 as more and more internet merchants began automatically collecting the NY tax. I suspect that the amount on my 2005 return will be well below $50, as there are even more internet merchants now automatically collecting the NY tax.

    Because the state budgets in NY, CA and quite a few other states are so far in the red, the state/local tax people are starting to turn over every new rock they can find in an effort to collect more tax dollars. The uncollected internet sales and excise taxes are one aspect of that. Heightened attention to income taxes from people who work in 'cash businesses' is another aspect which is likely to hit very hard later this year as well.

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    Default Re: Melonie...NY state tax question

    In 2003 I only filed as a partial resident, 2004 I was a full time resident but filed with Fast Form IT-100 and the Sales and Use tax was not listed on that form. This year that form as well as others have all been discontinued. So now I realize why I never noticed this issue before. New NY State forms this year.
    I think most of the purchases I made I paid tax, I think anything from Amazon.com usually charges it. I got a little panicked at first, but it's not as bad as I thought.
    Thanks for the info.

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