Taxes collected on on-line sales..............8k!

[mmburtch]

Pretty soon it will be safer to buy cigars from Hong Kong than to buy from Holt's or Famous.

[Rant]

The sad part is that better than half of the taxes are to help people quit smoking cigarettes because they were duped into starting to smoke not knowing they could become addicted and that there are health issues. Sadly very few Americans maintain an attitude of personal responsibility. It's always someone elses fault and somebody better make it right.

I don't mind paying taxes to support services that support the greater good. Paying to help someone stop smoking who started long after the Marlboro Man died of cancer just doesn't make sense. If I tell you that dog bites, and you stick your hand through the fence, it shouldn't be my fault.

[/Rant]

 

[nascarfan]

Thats too bad, I really feel sorry for the guy.

 

[puffstuff]

They are getting the records by sending out subpoenas and requests for information to vendors and manufacturers alike. Some are cooperating, some are not. If you buy in state, your taxes are covered. If you buy out of state the buyer is responsible for both sales and excise tax. If anyone thinks they are immune, think again. These are back taxes owed to the state government. In a letter I received about 8 months ago from one of the states, requesting information. They stated more or less, by not giving up information I was helping people with tax evasion. My attorney advised me that unless it was the state of Georgia, the other state did not have jurisdiction and I need not respond. I never heard another word about it. Know who you are buying from, ask them if they report shipments. KNOW YOUR VENDOR!

 

[drew_goring]

They are getting the records by sending out subpoenas and requests for information to vendors and manufacturers alike. Some are cooperating, some are not. If you buy in state, your taxes are covered. If you buy out of state the buyer is responsible for both sales and excise tax. If anyone thinks they are immune, think again. These are back taxes owed to the state government. In a letter I received about 8 months ago from one of the states, requesting information. They stated more or less, by not giving up information I was helping people with tax evasion. My attorney advised me that unless it was the state of Georgia, the other state did not have jurisdiction and I need not respond. I never heard another word about it. Know who you are buying from, ask them if they report shipments. KNOW YOUR VENDOR!

That is good to know. :thumbs:

 

[Flea7]

Thanks Al !

Your insight is very much appreciated! Do you know if the state or feds can subpoena credit card information for the same reasons?

They are getting the records by sending out subpoenas and requests for information to vendors and manufacturers alike. Some are cooperating, some are not. If you buy in state, your taxes are covered. If you buy out of state the buyer is responsible for both sales and excise tax. If anyone thinks they are immune, think again. These are back taxes owed to the state government. In a letter I received about 8 months ago from one of the states, requesting information. They stated more or less, by not giving up information I was helping people with tax evasion. My attorney advised me that unless it was the state of Georgia, the other state did not have jurisdiction and I need not respond. I never heard another word about it. Know who you are buying from, ask them if they report shipments. KNOW YOUR VENDOR!

 

[puffstuff]

I don't know about that, but "smokelaw1" might.

Thanks Al !

Your insight is very much appreciated! Do you know if the state or feds can subpoena credit card information for the same reasons?

They are getting the records by sending out subpoenas and requests for information to vendors and manufacturers alike. Some are cooperating, some are not. If you buy in state, your taxes are covered. If you buy out of state the buyer is responsible for both sales and excise tax. If anyone thinks they are immune, think again. These are back taxes owed to the state government. In a letter I received about 8 months ago from one of the states, requesting information. They stated more or less, by not giving up information I was helping people with tax evasion. My attorney advised me that unless it was the state of Georgia, the other state did not have jurisdiction and I need not respond. I never heard another word about it. Know who you are buying from, ask them if they report shipments. KNOW YOUR VENDOR!

 

[PetersCreek]

If this Alaska Department of Revenue press release is any indication, it's not just the vendors we should be worried about...

On March 17, 2005, Alaska’s Attorney General announced a joint public/private initiative to prevent the illegal sale of cigarettes over the Internet. Participants in the initiative included Attorneys General from across the country, the federal Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and credit card companies. Under this initiative, credit card companies agreed to suspend the use of credit cards as a method of paying for Internet cigarettes unless the Internet seller proved it was complying with all state and federal laws. “The credit card agreement has become a very useful enforcement tool,” said Johanna Bales, Revenue Audit Supervisor, with the Department. “Since the agreement was reached, approximately 10 Internet companies have provided the Department of Revenue with the names of Alaskan individuals who have purchased cigarettes from their websites and we continue to receive information every month.”

[emphasis mine]

It could be that other states are doing the same thing to strong arm our vendors.

 

[NullSmurf]

I think the government is doing an end run on us. I wonder if they can serve a subpoena for records to major credit card companies looking for purchases made to a named vendor, then, as Moki suggests, sends a trolling letter to the taxpayers they harvest. I might also speculate that is how the Fed is tracking International purchases. I wonder how difficult it would be to purchase one of the gift Visa/MC/Amex cards to use for domestic AND international purchases. Its virtually untracable.

I would also hope that the major players serving us know where their bread is buttered and use every tool to fight giving up their customer info.