In a recent DWF Pro Business post, members noticed that The California State Board of Equalization has been sending representatives to businesses door-to-door, checking for business licenses and sellers permits.
As of last week, the Florida Department of Revenue has also begun sending notices to photographers, checking up on both “Use Tax,” which requires business owners to remit sales taxes that would have been paid on out-of-state purchases of equipment had they been made in-state, and inquiring as to the legitimacy of reports of tax-exempt sales.
In the sputtering economy, sales for most retail business have slipped, resulting in a budget shortfall for states that rely on sales taxes to fund government services. As such, state agencies are leaving no stone unturned looking for potential past-due taxes to shore up government coffers. Photographers, make sure your accounts are up-to-date and your taxes properly filed.
Do any readers know of states besides Florida and California that are cracking down on tax dodgers? Who else should be warily eyeing their mailbox?
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8 Comments at "State Tax Authorities Crack Down on Photographers"
Utah did this a few months ago. They sent letters to all photographers asking for them to go over their sales and use tax returns and send in any back taxes. In the letter there was several pages on all the different things you should charge/pay sales tax on.
WA did the same!
I’m glad they are cracking down. For too long our profession has been inundated with Uncle Bob’s unfairly competing by going under the table and working for less. We should all pay our fair share of taxes.
While I agree with you George, this isn’t exactly what that’s about it…they’re looking for errors and back taxes from people who file and pay their taxes. I wish they’d go after the people who advertise and perform services, but don’t pay any taxes at all, as opposed to hassling the people who do.
Uhm, uncle Bob isn’t making any money. He is offering his “services” as a gift to the bride and groom.
Agreed with Matt – if there was a way for dot gov to crack down on under-the-table work and those who only pay tax on their day jobs before they hit up full-time photographers who are doing their best to navigate already ridiculously confusing tax subtleties (hi Massachusetts! need me to fill out another form for you?) I’d be less annoyed.
Pennsylvania over the past year has sent out letters reminding people of use tax along with a form to remit.
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All one has to do is “anonymously” alert the Board of Equalization
(CA.) of the scofflaws and they will investigate.
I don’t worry about MY taxes as I have my accountant keep excellent tabs on all of that. If you run a business and try to do your own taxes, well that’s a path to failure.
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