Sale Tax fee?

sapearl wrote in post #17768595
Ok, I can understand that.

So out of curiosity, in your state how do they determine in advance what you will make? Do you provide an estimate and then if you pay them too much in advance you run a credit for a while?

I tried to find a source for the information you asked. The best I could find stated:

http://blog.taxjar.com …s-tax-permit-mississippi/

I don't know if photographers are required to post a bond if they do not have a studio, but they would be required to if they did not reside in Mississippi anyway. My experience with sales tax is mainly from having friends who had businesses selling parts that had to pay a bond. I know they would not have had to pay a bond if they had an office instead of operating out of their homes.

So now you should understand why you got the bill (failed to file on time) and how to take care of it (file a dispute indicating no commercial activity for the prior quarter BEFORE THE DEADLINE).

Most of that bill is probably just a penalty for not filing. Hopefully, as a new business owner, they will let that slide.

Nogo wrote in post #17768647
Most of that bill is probably just a penalty for not filing. Hopefully, as a new business owner, they will let that slide.

I hope they let it slide too - but it does sound like a rather sizeable penalty.

Warning: This is almost certainly a legitimate communication from your state tax agency and you should take the necessary steps to convince them that no tax is due. HOWEVER, there is also a chance that this is a scam.

Scammers are known to target newly registered companies with worrying "you owe tax - pay now or incur bigger penalties" style fake tax demands. The number on the demand leads to the scammers, not the tax office, and they will inform you that you need to pay now, via wire transfer or pre-paid whatever card, which is basically untraceable/unrecovera​ble.

Do not call any phone number on the demand unless you have independently verified that it is actually the number for your tax office.

It looks like you didn't file a tax return or it was lost. As it states; you must file a return whether or not you did any business.

Dan Marchant wrote in post #17768856
Warning: This is almost certainly a legitimate communication from your state tax agency and you should take the necessary steps to convince them that no tax is due. HOWEVER, there is also a chance that this is a scam. ......

Dan makes a good point here. Also, did you notice some of the wording on that letter:

"A review of your Indiana sales tax for the tax period July 31, 2015 shows you may own $555.18 including penalty and interest. YOU MUST TAKE ACTION IMMEDIATELY TO RESOLVE THIS TAX DEBT. You must pay the amount owned no later than January 4, 2016"

I have never owned taxes due to my state tax agency but I have owed them legitimate money. Scammers often use poor grammar and spelling. Verify the correct phone number for inquiries and then contact them for a correct status.

I will check the department of revenue number I found online to see if it match. I'm pretty sure it's legit but will double check. Either way I'm still not paying $500 for taxes and I haven't even made $500 yet. I guess I shouldn't of registered my business until I actually had paying session. This makes me want to just closed my business until I'm officially ready and hire the right people to handle this for me.

When I was 20 years old I started a boat cleaning business. I was full time working elsewhere at the time and got to where I wasn't doing in boat cleaning and stopped filling tax returns. I got a knock on the door one Saturday morning, it was the revenuer, he said that I should either close the business or file returns.

sapearl wrote in post #17769073
Dan makes a good point here. Also, did you notice some of the wording on that letter:

"A review of your Indiana sales tax for the tax period July 31, 2015 shows . . ."

Another thing: July 31, 2015, isn't a period. It's a date. An official letter would more likely give beginning and ending dates or say "the tax period ending July 31."

These oddities aren't conclusive. Communications from government offices aren't always well written and well thought out.

The state taxing authority probably puts its rules online. You might check whether July 31 is a significant date on its calendar.

I called and lady said to pay sales tax I must file monthly, they don't do quarterly and if I haven't had any sales to still file with $0. She said if I had any problems to call back and they will walk me through it. Hopefully once I file it will go away. I guess July 31st was the first payment date. Since it started July 1st.

Good to hear.

OneDeep wrote in post #17769507
I called and lady said to pay sales tax I must file monthly, they don't do quarterly and if I haven't had any sales to still file with $0. She said if I had any problems to call back and they will walk me through it. Hopefully once I file it will go away. I guess July 31st was the first payment date. Since it started July 1st.

Monthly payments....ugh. PITA. Too bad they don't have a twice/year option online. Well, good luck and I hope it goes away for you.

OneDeep wrote in post #17769507
I called and lady said to pay sales tax I must file monthly, they don't do quarterly and if I haven't had any sales to still file with $0. She said if I had any problems to call back and they will walk me through it. Hopefully once I file it will go away. I guess July 31st was the first payment date. Since it started July 1st.

In most states you can file on-line then mail in a check if you have any taxes due.

sapearl wrote in post #17768595
Ok, I can understand that.

So out of curiosity, in your state how do they determine in advance what you will make? Do you provide an estimate and then if you pay them too much in advance you run a credit for a while?

In my current state, Washington, when you file/apply for a business license and sales tax number, they ask you, on the application, what amount you expect to gross per year. If you fail to file when you are supposed to (quarterly here), then they bill you based on a pro-rated portion of what you said your expected annual gross would be. Of course, if you didn't earn up projected expectations, then you just need to file (like you should have done in the first place) and show that you don't really owe the amount they billed you for. Seems like a fair way way to do it.