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Texas Sales and Use Tax - Page 3

post #31 of 35
9/11/11 at 6:59pm
Thanks, Jules. As you know from my posts, I try to be helpful. This thread could have put some CC'ers in a panic. The tax is not sustantial, but the penalties can be bad, especially if they keep going back in years, which they will. My advice is a simple solution. Look it up online. Be somewhat knowledgeable, determine your max liability, and discuss your course of action during your quarterly CPA meeting. Keep receipts in question separate. Most of the time, small businesses will find this to be a small amount. I am on a state line and I order online. But even with my startup, the amount is small. And I have a full commercial business.

This is a good thread and we should thank the OP for bringing it up. I hope this causes our fellow cakers to make a quick check and put their minds at ease.
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post #32 of 35
9/11/11 at 7:11pm
Here in CA they are being more proactive about collecting use tax from businesses, but they are only going after businesses with >$100K in gross revenue, and even then it is not very profitable for the state if you look at the cost of administering the program versus new use tax revenues.

http://articles.sfgate.com/2011-08-01/business/29837430_1_sales-tax-tax-preparers-small-businesses

Ideally this should be a non-issue -- any decent CPA should know enough about use tax to handle compliance well enough that a separate consultation should not be necessary, especially if you are a small business.
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post #33 of 35
9/11/11 at 9:32pm
"You never did comment on the benefits of hiring an attorney for $500 to save $100"

My point was: most CPAs have little to no training in this area, and if you want accurate, professional guidance in this area, you would have to hire a consultant, lawyer, or other service that specializes in the field.

I merely pointed out those professionals as an option. I did not say that was what anyone "should" do. I did not say that a $100 tax bill was worth a $500 attorney bill.
Just put on your Big Girl Panties and deal with it!
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Just put on your Big Girl Panties and deal with it!
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post #34 of 35
9/11/11 at 10:23pm
I find it an odd generalization that most CPA's can't handle use tax. As Jason pointed out, it is more trouble than the amount of the tax. CPA's are not going to pick through piles of receipts for any less hourly rate. So not being paid to do it seems more accurate. Of all of the areas in the state tax codes, use tax is rather simplistic.

And you did advise to get a CPA specialist or an attorney specializing in use tax. That is why we have been debating for three pages. Please don't change your story now, as it is probably too late to edit those posts. Anyone can read it. It is completely unrealistic, financially impossible, and unnecessary to hire specialists for such an insignificant amount of money in many small business.

Some large companies will rack up quite a bill, and it would be prudent for them to retain a specialist. I doubt an independent bakery could even get an appointment. When my husband confers with specialty attorneys, he must present a package of information prior to the meeting and pay to have it considered. If accepted, the retainer is due on the first consultation. The price per hour is double local fees, and these specialists are usually located in biger cities that can support that type of specialty.
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post #35 of 35
9/11/11 at 10:34pm
I just did a quick google of use tax attorneys and I followed the results for several pages. In the majority of cases, they handle litigation after there is an audit where non-payment of sales and use tax are involved on a larger scale, like a major IRS issue. I did see one that offered a setup and audit for use tax, but it was bundled into a full tax package. They offer all paperwork regarding reciprocal states after they research your business purchases with all states where you have done business... individually.

This is not a resource for small independent businesses. It is fiscally unattainable.
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