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sales tax reg and subject other taxes

  • 1.  sales tax reg and subject other taxes

    Posted 07-26-2019 11:36

    I have a client that has registered to pay sales tax in all applicable states. He sells totally  on-line or by phone personal property, he has all his distribution out of one state.

    We have gotten letters from Kentucky & Ohio so far asking for the company to file entity taxes & income taxes.

    1. Are they correct, that they are subject to these taxes
    2. What other states can we expect to have these obligations

     

     

     

    SANDY GOLDFINE,  CPA                           

    250 TANGLEWOOD LANE

    KING OF PRUSSIA,PA 19406

    610-265-4122  FAX 610-382-5159

     image001.jpg@01D08351.CFBC5400

     

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  • 2.  RE: sales tax reg and subject other taxes

    Bronze Most Valuable Member
    Posted 07-27-2019 12:19

    I suggest you contact a CPA whose ONLY BUSINESS is Sales Tax compliance for almost all the states:

    Mark Stone, CPA, Sales Tax Defense, LLC, 673 Deer Park Avenue, Dix Hills, NY

    Tel 631-491-1500, Fax 631-491-1515, info@SalesTaxDefense.com

    He's a CPA, but not in public practice. His services are ONLY connected with Sales Tax Compliance.

    --  Evan S. Golar, CPA, EA, NTPI Fellow, ARA 15 Murray Drive Airmont, New York 10952-3816 work 845-357-8770 fax   845-357-5731 www.golarcpa.com  Enrolled Agents-America's Tax Experts     E.A.???s do CPR for taxpayers, Consultation, Preparation and Representation  If you are satisfied with our services, please refer us to your friends, family and colleagues  This e-mail is intended only for the confidential use of the recipient named above.  If you are not the intended recipient, you are hereby notified that any review, dissemination, distribution or copying of this message is strictly prohibited.  If you have received this communication in error, please notify us immediately by e-mail or telephone and delete the original message.





  • 3.  RE: sales tax reg and subject other taxes

    Bronze Most Valuable Member
    Posted 07-27-2019 13:42
    Edited by Brian Gordon 07-27-2019 14:14
    Sandy,
    You were probably contacted by Kentucky and Ohio for income tax because you registered for Sales Tax there.  Correct?
    It is an assumption on their part that if you have nexus for sales tax, then you must also have nexus for income tax.  They may be correct, but that is not necessarily the case.

    The threshold for the Ohio CAT tax is 500,000 of sales into Ohio.  If you do not have sales of that amount to customers in Ohio, you do not have nexus for that tax, and are not required to register.  I do not know the Kentucky rules off the top of my head, but  I can do some research for you if you would like.

    Federal Public Law 86-272 also provides protection in most states from income tax if tangible personal property is being sold, but unfortunately not for the Ohio CAT or the Kentucky entity tax which are gross receipts taxes.

    If you would like me to help your client deal with these states, please give me a call.  My practice  primarily focuses on State Tax Audit Representation.

    Good luck,

    Brian Gordon

    ------------------------------
    Brian Gordon CPA
    President
    State Tax Audit Representation
    626 RXR Plaza
    Uniondale, NY 11556
    516-510-6041
    bgordon@statetaxauditrep.com
    www.StateTaxAuditRep.com
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  • 4.  RE: sales tax reg and subject other taxes

    Bronze Most Valuable Member
    Posted 07-27-2019 13:55
    Edited by Brian Gordon 07-27-2019 14:08


    ------------------------------
    Brian Gordon CPA
    President
    State Tax Audit Representation
    626 RXR Plaza
    Uniondale, NY 11556
    516-510-6041
    bgordon@statetaxauditrep.com
    www.StateTaxAuditRep.com
    ------------------------------