A client has been operating in his own landscaping business for around two years. He doesn't have any employees and never filed a NJ-REG. However, he was technically supposed to be remitting sales taxes. He has ignored this issue despite being advised otherwise by an EA. He has filed when required the Form 1040 along with the Sch. C for what he claims is his single-member LLC. The NJ taxing authorities have not inquired about sales taxes or required that he remit any sales taxes to date. Should I now prepare the NJ-REG at this late date for this client? Can this client just start remitting sales taxes from this point in time going forward or will my sending in the NJ-REG now for him result in his having to pay sales taxes for quarters that have already occurred? What is the best way to proceed in this case?
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Responses to NJ-REG Questions
I've consulted with other tax professionals on this issue since I posted these questions some time ago. My understanding is the NJ-REG does have to be submitted in this case and doing so will result in the client having to pay sales taxes for prior quarters. There apparently is no way to avoid this scenario.
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