Tax Time: Should You Ignore Taxes On Online Purchases?

from the maybe,-maybe-not... dept

Ah, it’s tax time. We first mentioned this last month, but some states are getting a bit more explicit in reminding people that they’re supposed to pay taxes on out-of-state items that they purchased – even if the payment is mostly on the honor system. They’ve added an extra line on tax forms where people can fill in just how much out-of-state purchases they made online. Of course, what it’s really doing is confusing many taxpayers who have no idea what to put down on the additional line. Many are simply recommending that people leave that line blank – even to the point where one NY newspaper says: “They’ve got to be crazy, and you are, too, if you comply.” Still, some tax professionals are warning that if you leave that line blank (claiming you didn’t make any online out-of-state purchases) and you get audited, it’s something they might focus on.

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Comments on “Tax Time: Should You Ignore Taxes On Online Purchases?”

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Bastard Sammy says:

No Subject Given

How would they go about proving such a thing? Sure, they can also audit the postal system (doubtful), Fedex, UPS, and Airborn, but in order to get an accurate record of purchases, they would also have to cross reference that information with your bank account. All in all, it sounds like more work than these states are willing to do. Write about this again, when it’s a real threat…

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