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Texas Sales and Use Tax - Page 2

post #16 of 35
9/11/11 at 12:04pm
And OP knew all your assumptions...how?

The answers to your questions about in-state purchases was addressed pretty thoroughly in the other thread. It's a pretty lengthly explanation.
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post #17 of 35
9/11/11 at 12:14pm
this-mama, in my educated opinion, anyone who does their own taxes is asking for a problem if they don't have considerable knowledge. Giving a simple explanation that will put them on the path to knowledge and prompt a meeting with a CPA is more help than giving more information than they can handle.
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post #18 of 35
9/11/11 at 12:34pm
And CPA's are usually NOT trained in the world of sales and use taxes. I audited many, MANY taxpayers who shrieked at me about WHY didn't their CPA tell them about this???!!!!!

It's better to give someone more information than they can handle, than to give them less information than they need.

In my educated opinion.
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post #19 of 35
9/11/11 at 1:03pm
We have had countless CPA's and all have made horrendous mistakes in my husband's medical practice and land development companies. On this side of the desk, it has been laziness, sub-par work ethic, and the fact that you pay every month and don't find out for two years that the work wasn't done. They know their job, but because the average businessperson doesn't, they get away with leaving out essential data. And the averae small business cannot afford to sue the CPA. We have a large lawsuit against one and he even knows how to work that system to not be accountable for his work. Luckily, our attorney specializes in these situations. The rate for this type of legal work is at a premium.

I happen to despise accounting, but realized at a young age , the value of the skill. I keep my own books and deliver the totals needed to the CPA. I concentrated on cost accounting, so I happily leave the taxes to the experts.

I think that making a baker aware that if you didn't pay your state tax on it, you owe it, is the message. And in a generalization, paying out of state tax is usually reciprocated. Therefore, keep good records, know that you approximately owe tax on untaxed items and the difference if another state's tax is lower. And make sure the CPA you chose is provided the receipts that may be in question.
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post #20 of 35
9/11/11 at 1:59pm
Keeping good records is only part of the answer. Knowing the tax codes that affect your business, and using that knowledge to reduce your tax/penalty/interest exposure is the other part. And as I mentioned, most CPA's do not have sales/tax training. You have to retain a sales/use tax consultant, lawyer, or accrual/payment service. Your two-sided advice to ask a CPA, then bashing CPAs is confusing.

Sales/use taxe auditors have a perverse glee in exploiting a taxpayer's ignorance of the law and inexperince applying it. It's an obscure, complicated tax, and not many people have firsthand experience with it. I thought that freely sharing this obscure knowledge would be helpful.

The repeated generalizations, the fairly rude attitude toward the information I shared, the dismissals of the experience and credentials behind that information, and the advice to enlist an untrained, hopefully-not-inept, lazy, sub-par CPA must be the way to go. My bad.

OP, I guess you should ask scp for advice on this topic, as I can't be of any help - good luck!
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post #21 of 35
9/11/11 at 2:12pm
Quote:
Originally Posted by scp1127

costumeczar, I was not disputing her information. And Jason did not do what she said. But general information that would be helpful to the CC members that would prompt them to seek advice was all we were trying to do. One of my majors was accounting, but I don't do my own taxes. I leave that to people who earn their living in that field.



My comment wasn't necessarily directed at you, it was just to make the point that I'll prefer to take tax advice from someone who has experience in the area!

Regardless, the OP and anyone else who needs advice on specifics of their own state's taxes should contact the government in that state, not an online forum!
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post #22 of 35
9/11/11 at 2:16pm
I agree that a lot of CPAs are willing to cut corners and fudge the law in order to get their clients larger refunds, too. I'm pretty conservative with the deductions that I take (or don't) but I've seen a lot of people on here saying that their tax guy told them that this and that is okay to do, when I know it's either not, or it's very borderline.
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post #23 of 35
9/11/11 at 2:46pm
Thread Starter 
Thanks for all the info. I think I got some answers on major points and ended up even more confused on others! So I'll contact my local tax office. I plan to keep my own books, but I may consider contacting an accountant after I get some answers from the tax office.
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post #24 of 35
9/11/11 at 5:02pm
I'm not arguing, but a separate sales tax CPA and lawyer in that field is just too unrealistic for most of the people with little cake businesses. My husband doesn't even have that. And so far, that has not been a problem. We have about ten different attorneys and I know this isn't one of them. And what is to keep a sales tax CPA from doing a poor job? And in this economy, attorneys are dragging out their work, keeping the opportunity for retention even farther out of the reach of the small businessperson. There comes point when these tiny businesses have to do the best that they can.

Costumeczar, as I stated, I never touch the tax part myself. But I also don't get my tax information off of CC.

For people who want to look into this more, google it, get familiar, and know the right questions to ask your accountant. For small businesses, you will know the extent of your liability based on that special pile of receipts. This will help you decide how to proceed.
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post #25 of 35
9/11/11 at 5:56pm
Quote:
Originally Posted by scp1127

I'm not arguing, but a separate sales tax CPA and lawyer in that field is just too unrealistic for most of the people with little cake businesses.



Which is why I tried to offer some specific, detailed advice, for free - instead of my previous $150/hour rate.
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post #26 of 35
9/11/11 at 6:05pm
And since you brought that up, a person would have to have over $8000 in qualifying purchases to have a possible liability of about $500.00... probably not enough to cover a consultation with a tax lawyer. Which makes my information relevant. The cost of repaying the tax is less than the cost of the advice. And the average small time baker may only have only $500 to $$1000 in receipts, making a max liability on $1000.00 only $50.00. Not enough to pay you.
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post #27 of 35
9/11/11 at 6:35pm
Paying the tax is not what will kill a small business. The penalties and interest usually doubled a taxpayer's assessment, and sometimes tripled it.

Wow, you are just so......condescending, snotty, and defensive when someone else has something to contribute. Your responses to my posts don't even align with what I have tried to say or explain.

I see it really bothers you to not have the last word, even if it contradicts what you said 2 minutes beforehand.
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post #28 of 35
9/11/11 at 6:39pm
From this angle there is plenty of condescending, snotty, and defensive behavior to go around. icon_lol.gif

BTW I would recommend refraining from personal attacks in the future, they are not allowed here.
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post #29 of 35
9/11/11 at 6:46pm
My point was that repaying the tax is more economical than hiring a specialty lawyer or CPA.

And the same thing can be said about your responses. I have been careful to state that it is my opinion, but I am sure that a repayment, if unsure, of a very small amount of money makes more fiscal sense than to hire an attorney, which is your professional opinion. You never did comment on the benefits of hiring an attorney for $500 to save $100. And I don't know of an attorney you could even get for $500.00. No penalties if no question about the amount. I look forward to your response, since it has been ignored. This is not a contest. I don't want to win, but I certainly will not let a comment stand with no rebuttal, that does not make fiscal sense to these small businesses.
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post #30 of 35
9/11/11 at 6:50pm
scp1127 was not trying to be rude or have the last word. You both have stated some information that is helpful to have for small business to consider when considering how they are going to go about paying their taxes and who they are going to hire. I am sure that there is something different about every state in the union and everybody knows that what both of you have stated is just the beginning of where to go.

This_Mama_rocks: I think that you are taking offenses where none were meant. I never saw any rudeness in her statements. I do not know her personally, I have just read many things that she has written and feel that she has something to contribute to the conversation on here as well as you do.
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