Az Form 1040 Line 30 "unpaid Use Tax"

[PIGLEE]

I just found this looking at the new tax forms for AZ. They want you to voluntary pay the sales tax on on line purchases. I laughed at first, thinking it was a joke, but knew it was not. I was unable to attend any seminars this year. Has anyone heard any other information about it? Are you going to ask your clients about it? I put it in my newsletter. What is anyone else going to do?

[Gary2]

They're late to the game. Other states have been doing this for some time.

[S T]

Ca and NC

NC has had it on their form for few years
California went so far as to pull 2008 Biz returns and then "pre-register" based on their "protocol taxpayers", and last year we had to file in 2008, 2009 and 2010, then after that Ca registration program didn't produce much revenue, CA canceled most of the separate use Tax registrations. And Ca was probably looking at the largest Target "Amazon" purchases online.
Now on all or most of the California returns there is a line item for "use tax"

Sandy

[AZ-Tax]

Discussed on Horizon this past suumer

I just found this looking at the new tax forms for AZ. They want you to voluntary pay the sales tax on on line purchases. I laughed at first, thinking it was a joke, but knew it was not. I was unable to attend any seminars this year. Has anyone heard any other information about it? Are you going to ask your clients about it? I put it in my newsletter. What is anyone else going to do?

Summer of 2011, Stephanie Campbell of the NAEA AZ chapter was on Horizon (local show regarding local AZ issues mostly politics on the AZ State University channel) did what I thought was a fine job of going in to the new AZ tax law. I recall her mentioning "keep your receipts for out of state purchases" and that "AZ dept of Rev has talked about reving up auditing due to this". I know an insurance client (not tax client yet) who has been audited by AZ and she describes it as hell.

I will have a line in my tax organizer about this and also adding a line regarding the AZ tax credits like which one does it exactly apply to.

[Gary2]

For what it's worth, MA also has a safe harbor provision for most purchases under $1,000. It's much easier to say "For $50, MA will consider you covered for all your small purchases in NH or from Amazon, etc., so you only have to worry about the big ticket items."

For most people it's still a bargain. Living near the border, all of my NH shopping is guilt-free and legal.

[FEDUKE404]

Nothing new

They're late to the game. Other states have been doing this for some time.

Agreed.

I have clients in several states who just use the "table" amount (from relevant state instructions and generally based upon income/AGI) and then sleep somewhat better at night.

Of course, folks are "supposed" to report all online/out-of-state purchases and pay the relevant taxes on same.....but we shall not venture there!


FE