OT But probably affects most on this board

[D. Bergin]

I already report my sales so it doesn't bother me at all.

What concerns me is that this is just the first step towards the government imposing a federal internet sales tax.

[Jim VB]

Originally Posted by D. Bergin

I already report my sales so it doesn't bother me at all.

What concerns me is that this is just the first step towards the government imposing a federal internet sales tax.

Depending upon what state you live in, you probably already have an "internet sales tax." Most states require you to pay a tax on all internet purchases. However it is extremely difficult to enforce.

Most state tax forms have a line item asking for purchases you made, on which no tax was charged. Most people ignore it.

[Rich Klein]

A local card shop, owned by a nice and honest older man (Leon has met him and agrees with me), nearby I'm in favor of these concepts.

The advantages that internet sellers have over B&M stores is not fair to them and being able to even out that is a good idea in my book.

Rich

[chiprop]

there is a good chance this will be repealed before it goes into effect

[4815162342]

Originally Posted by Rich Klein

A local card shop, owned by a nice and honest older man (Leon has met him and agrees with me), nearby I'm in favor of these concepts.

The advantages that internet sellers have over B&M stores is not fair to them and being able to even out that is a good idea in my book.

Rich

I understand what you are saying, but I'm not a big fan of spreading the misery around.

[M's_Fan]

The paypal website makes it clear that you have to trigger both the 200 transaction AND the $20k gross sales volume mark:

Will I Be Affected by the 2011 Tax Changes if I Only Meet One of the Thresholds?

No. A merchant has to pass BOTH thresholds ($20,000 in gross sales volume and 200 transactions) in 2011 to qualify for the new requirements. A business receiving $10,000 in payments per year would not be affected by the new requirements.

Some have suggested opening multiple accounts to get around this. From the paypal website:

If I have multiple accounts that, when combined, meet the thresholds, but individually they don’t, will I still qualify?
Yes. PayPal and all other payment processors will report sales and transaction volume to the IRS by SSN/TIN/EIN.
For example, if you have two accounts tied to the same SSN/TIN/EIN with the following payment levels:

Account A - $18,000 in sales and 180 transactions
Account B - $2,000 in sales and 20 transactions
Your accounts will qualify under the new regulation.

Look for the IRS or Congress to ratchet down the $20k limit over time and close the loopholes people have found to get around this reporting requirement.

Legal Disclaimer: None of this post is to be construed as legal advice or forming an attorney-client relationship; see your own tax professional.

[D. Bergin]

Originally Posted by Rich Klein

A local card shop, owned by a nice and honest older man (Leon has met him and agrees with me), nearby I'm in favor of these concepts.

The advantages that internet sellers have over B&M stores is not fair to them and being able to even out that is a good idea in my book.

Rich

I'd have to disagree. People who own B&M stores are also allowed to sell out of state on the internet, and many if not most of them do to supplement their income. Also, something sold in the store does not carry a S&H charge. It's just an additional burden for everybody and everybody's costs go up.

Another item buyers don't seem to realize. Paypal or a Merchant account gets a cut of that S&H charge, not just the item price. They also get a cut of State Sales Tax if paid........which the seller has to pay for, on top of collecting and submitting the Exact tax rate from the buyer.

Paypal is certainly not going to be hurting if all sellers are forced to collect a Federal Internet Tax, because they are also going to be getting a piece of that to, every time it gets paid, which will be the sellers responsibility to pay for in fees, on top of paying back the exact amount collected.

Lower bids/sales, less money and more paperwork.

No, I'm afraid from a selfish standpoint........I'm not in favor.

"Even playing field" is a myth perpetrated by Big Box Stores. It certainly is not going to save the little Mom & Pop downtown strip ideal.

[jtschantz]

I don't think the issue here is so much about sales tax as it is more about personal income tax..just sayin!

[D. Bergin]

Originally Posted by jtschantz

I don't think the issue here is so much about sales tax as it is more about personal income tax..just sayin!

Yeah, sorry I took it in another direction. Just theorizing what this is eventually leading to.

If you are already keeping records and reporting your sales it shouldn't bother you. I just think it's a tool to track how much commerce is actually going on with the internet so they can use it as a bargaining chip to claim how much revenue the government is losing so they can either tax it at a federal level or into a combined state tax fund.

[Jim VB]

Originally Posted by D. Bergin

Yeah, sorry I took it in another direction. Just theorizing what this is eventually leading to.

If you are already keeping records and reporting your sales it shouldn't bother you. I just think it's a tool to track how much commerce is actually going on with the internet so they can use it as a bargaining chip to claim how much revenue the government is losing so they can either tax it at a federal level or into a combined state tax fund.

We have no national sales tax of any kind, in any area. Historically, the Federal Government has left Sales Tax issues up to the state and local governments to handle (as they have property taxes.) Could this change? Sure. But I don't see it happening in the foreseeable future.

I do think it is a move to close a loophole in the collection of income taxes. Therefore, it is designed as enforcement of a law already on the books, and not a new law.