Gary Bode, CPA: NC taxation impacts your bottom line! If you'd like a gratis initial consult, give us a call at 399-2705.
NC seems to have lost a round in the battle with Amazon.com over collecting sales tax on their Internet sales, but the news reports are vague about the actual settlement. The ACLU was involved, so Amazon won’t supply specific info on titles or materials ordered by NC customers, as this violates our first amendment rights. But will they start collecting sales tax for NC? The Wilmington Star reported NC paid out $99,000 in legal fees. In a related Texas development, Amazon has pulled a fulfillment center there because the TX DOR maintained this center gave Amazon a physical presence in Texas (nexus), and therefore Amazon had to collect and remit sales tax for and to them.
Most of our clients have simpler NC sales tax preparation issues. If you’d like a gratis initial consult with a CPA in a Wilmington NC accounting firm, give us a call at 399-2705.
Amendments to NC Sales Tax attacked as Unconstitutional
A group of Internet travel sites is suing NC over amendments to the Sales Tax laws, that came into effect on Jan 1, 2011, as unconstitutional and violating the Internet Freedom Act (per the Seattle Times).
Basic Issues - Use Tax and Sales Tax
For years NC has required residents to pay Use Tax on un-taxed internet purchases. Use Tax is just an alternate version, in this case, of the Sales tax. Compliance has been predictably poor and NC is losing more revenue as Internet sales expand into traditional retail sales. And doing the government’s work incurs expense and liability for the affected businesses. NC has 100 counties, with multiple Sales Tax rates. It doesn’t take a CPA or accountant to see this is a nightmare for a small business to track, collect and remit. Businesses are protesting. On the federal level, Congress just repealed legislation that would have required businesses to prepare excessive numbers of year end 1099s.
The Future
The Form 1099 backlash is just a ripple in an ocean of IRS and NC mandated responsibilities for the business sector. If retail outlets have to comply, the Internet stores shouldn’t be exempt. And it is unlikely NC will repeal our Sales Tax.
“I see Sales Tax on Internet purchases becoming increasingly pervasive. NC needs the revenue.”
Gary Bode, Wilmington NC accountant and CPA
We’re a Wilmington NC accounting firm that understands NC taxation. Many accountants concentrate on the federal issues, but NC taxation is complex and impacts your bottom line. Please read any of our posts to get a better feel for our proactive attitude and expertise. Of course we offer tax preparation, payroll processing services, financial accounting, QuickBooks training and business consulting. For a free initial consult with a CPA accountant, please call us at (910) 399-2705.
