Should you be collecting state sales tax?

[Michiana]

There have been a lot of posts questioning what constitutes enough firearm sales to require that person to have an FFL. One subject I have not seen discussed on this forum is what constitutes a business in the State of Indiana that would require the owner to have a Registered Retail Merchant Certificate and collect the 7% Indiana sales tax. I have observed several members of this forum who are obviously running part time businesses and should be registered with the State of Indiana and be collecting sales tax.


Were I one of these people and not registered I would be worried about having the State investigate me and be required to pay X amount of back taxes. These people also need to be declaring any profit and filing an income tax business form and making double social security payments. All this can be indentified in an audit and required to be paid retroactively to the State and Federal Governments.

I am interested in hearing other opinions from the group and if this has been addressed in other posts?

 

[ATF Consumer]

Yep, it sure would bite a big one to have uncle sam looking down on you...making threats to get their share of your profits.

It sure would suck to be one of these shady characters whom is abusing the site rules as well as state laws.

 

[Michiana]

It is not worth the gamble.

Yep, it sure would bite a big one to have uncle sam looking down on you...making threats to get their share of your profits. quote]



From 1996 to 2002 I ran Richards Guns in Elkhart as a FFL dealer. When I moved to Florida I had to turn in my license as the city I was living in refused to allow me to run a business in my residential neighborhood due to zoning. When I moved from Indiana I notified the State of Indiana that I was no longer in business. A year later I get a letter from a collection agency asking for some ridiculous amount of money including estimated unpaid sales tax, late fees, and collection fees. I had not lived in Indiana for over a year; made the proper notifications in writing and still spent six months fighting with these bureaucrats to get the bill cancelled. I was completely in the right and went through hell with them, I would not want to be in the wrong and have to fight these people.

If you are going to be in the business of selling things on a scale beyond the occasional personal transaction you best get a business license and cover your butt. The few bucks you are making is not worth the gamble if you get caught.

 

[smokingman]

Yep, it sure would bite a big one to have uncle sam looking down on you...making threats to get their share of your profits. quote]



From 1996 to 2002 I ran Richards Guns in Elkhart as a FFL dealer. When I moved to Florida I had to turn in my license as the city I was living in refused to allow me to run a business in my residential neighborhood due to zoning. When I moved from Indiana I notified the State of Indiana that I was no longer in business. A year later I get a letter from a collection agency asking for some ridiculous amount of money including estimated unpaid sales tax, late fees, and collection fees. I had not lived in Indiana for over a year; made the proper notifications in writing and still spent six months fighting with these bureaucrats to get the bill cancelled. I was completely in the right and went through hell with them, I would not want to be in the wrong and have to fight these people.

If you are going to be in the business of selling things on a scale beyond the occasional personal transaction you best get a business license and cover your butt. The few bucks you are making is not worth the gamble if you get caught.

I feel your pain. While I never moved out of state I did close a business THREE years ago.And every year it is the same thing.I get a bill,and again fight them and file new paperwork stating the business has been closed.Matter of fact just got off the phone with them for the third time yesterday.The person I spoke to was speaking English,but I am not sure where they learned it as most of what they said did not sound anything like English as I understand it lol.

 

[ATF Consumer]

I always file the sales and use tax late each year. I know when its due, but I aways seem to procrastinate enough to skip past the due date and end up getting these grotesque amounts in fees and penalties.
I operate a business where we collect no sales tax, so when I file, we pay nothing in, just file the paperwork and we're done with it. So, I don't know where they get some figure like $32,987 in fees when all I send in is a big fat $5 late filing fee and I'm done with it.