Topic Thread

SALES TAX

  • 1.  SALES TAX

    Posted 07-10-2018 10:49
    A  client in NYC has a retail furniture establishment. It is understood that sales tax should be collected on an accrual basis. This client typically takes a full deposit (occasionally a partial) and  at that time collects the full sales tax. As the order will not be complete until a later month should they be remitting sales tax upon collection or can (and should) hold those funds until they ship the merchandise and create a final invoice

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    Gabriel Bentovim
    HOFFMAN & BENTOVIM, CPAs PC
    Commack NY
    631-499-1500
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  • 2.  RE: SALES TAX

    Posted 07-11-2018 10:17
    Gabriel,
    According to NYS Tax Department publication:
    No matter which recordkeeping method you choose to record your
    business's transactions, you must report any sales made, and remit the
    applicable sales tax based on the accrual method of accounting. You
    are required to report taxable sales and remit the tax due on the return
    covering the period in which the sales are made,
    regardless of whether your customer has paid you.

    Brian Gordon


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



  • 3.  RE: SALES TAX

    Posted 07-12-2018 12:28
    I attended a seminar many years ago and one of the speakers had a high ranking position in the NYS sales tax department. He stated that as long as a taxpayer was consistent they would accept cash basis tax sales tax reporting.

    See 111.5 (B) of this audit field guide..doe anyone interpret this to meant that reporting on collections is accepted?

    https://www.nysalestax.com/media/111-Audit-of-Taxable-Sales.pdf

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    PerryPalettaCPA
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  • 4.  RE: SALES TAX

    Posted 07-13-2018 08:05
    Brian

    thanks for your reply but I believe you may have my question backwards. I understand that no matter how a company keeps its books it must report and remit sales tax on an accrual basis. My question with this particular client is a little different. They almost always collect the full sales tax on the furniture deposit but have not invoice or shipped the furniture yet. It may happen a month to three months later. When are they responsible for submitting that sales tax? Is it upon collection or upon shipping and final invoice

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    Gabriel Bentovim
    HOFFMAN & BENTOVIM, CPAs PC
    Commack NY
    631-499-1500
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  • 5.  RE: SALES TAX

    Posted 07-14-2018 07:54

    The liability exists when the invoice has been prepared and sent, assuming the merchandise has been shipped.

    The fact that a deposit is made, only effects the accounts receivable balance, has no effect on the sales tax liability.??

    --  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.





  • 6.  RE: SALES TAX

    Posted 07-14-2018 17:26
    In my practice I can choose to submit sales tax on a cash basis or accrual basis. Cash basis we collect the tax and pay it to the state the next month. Accrual you pay the tax based on sales, which if they don't pay it in full you have to adjust your sales tax later. I am just giving you my advise that I give to my clients, use cash when ever you can.

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    THERESA MATTHEWS
    Rader & Summa LLC
    DANBURY CT
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  • 7.  RE: SALES TAX

    Posted 07-15-2018 14:17
    I'm sorry must have misunderstood the question. Thanks for clearing things up for me.
     
    Theresa Matthews, EA
    Rader & Summa, LLC
    57 North Street, Suite 209
    Danbury, CT 06810

    Tele: 203-748-2773
    Fax:  203-791-9746
    Cell:  203-628-8910

    TO ENSURE COMPLIANCE WITH INTERNAL REVENUE SERVICE CIRCULAR 230, WE INFORM YOU THAT ANY U.S. FEDERAL TAX ADVISE CONTAINED IN THIS COMMUNICATION, INCLUDING ALL ATTACHMENTS, IS NOT INTENDED OR WRITTEN TO BE USED, AND CANNOT BE USED, FOR THE PURPOSE OF (1) AVOIDING PENALTIES UNDER THE INTERNAL REVENUE CODE OR (2) PROMOTING, MARKETING OR RECOMMENDING TO ANOTHER PARTY ANY TAX-RELATED MATTER(S) ADDRESSED HEREIN.
    Confidentiality Notice:
    This transmission and any attachments may contain information which is privileged, confidential, and protected by the attorney-client privileges. It is intended solely for the use of the addressee. If you are not the addressee, note that any disclosure, copying, distribution, or use of the contents of this message is prohibited. If you have received this transmission in error, please destroy it and notify me immediately. Thank you





  • 8.  RE: SALES TAX

    Posted 07-15-2018 14:18
     
    Theresa Matthews, EA
    Rader & Summa, LLC
    57 North Street, Suite 209
    Danbury, CT 06810

    Tele: 203-748-2773
    Fax:  203-791-9746
    Cell:  203-628-8910

    TO ENSURE COMPLIANCE WITH INTERNAL REVENUE SERVICE CIRCULAR 230, WE INFORM YOU THAT ANY U.S. FEDERAL TAX ADVISE CONTAINED IN THIS COMMUNICATION, INCLUDING ALL ATTACHMENTS, IS NOT INTENDED OR WRITTEN TO BE USED, AND CANNOT BE USED, FOR THE PURPOSE OF (1) AVOIDING PENALTIES UNDER THE INTERNAL REVENUE CODE OR (2) PROMOTING, MARKETING OR RECOMMENDING TO ANOTHER PARTY ANY TAX-RELATED MATTER(S) ADDRESSED HEREIN.
    Confidentiality Notice:
    This transmission and any attachments may contain information which is privileged, confidential, and protected by the attorney-client privileges. It is intended solely for the use of the addressee. If you are not the addressee, note that any disclosure, copying, distribution, or use of the contents of this message is prohibited. If you have received this transmission in error, please destroy it and notify me immediately. Thank you