Here's an article that appeared in the Sarasota Herald Tribune this morning, 11/29/07, written by Tom Lyons. I thought it might be interesting to readers:
Web buyer beware -- of sales tax authorities
Letters from Florida's Department of Revenue don't usually bring happy news, and one that a reader just received is no exception.
It seems the odds are good that I won't get one like it. But your odds?
That depends on your shopping habits.
"The Florida Department of Revenue routinely reviews information from many sources to determine if Florida Sales and Use tax was paid on taxable transactions," the letter to Scott Dornseif began, vaguely enough.
It explained that purchases of items brought or shipped to Florida -- stuff ordered online, for example -- are subject to the usual sales tax even if the seller did not collect that tax. The letter told Dornseif it is up to him and other buyers to send the state the money, and that the state can assess penalties to those who do not.
It directed him to "review your records for the past thirty-six months" to reveal all such purchases, and fill out a form listing the items and prices. It listed possible examples: furniture, computers and software, fixtures, machinery, works of art, jewelry and building materials.
Dornseif, an information technology specialist who works in Sarasota, says he does a lot of his shopping on the Internet. Though he can't think of any purchase of late that by itself would make him owe more than a few dollars or so in tax, he figures his online shopping triggered the letter.
Probably so. Renee Watters, a Department of Revenue spokeswoman, says the state uses information gleaned from trucking and shipping companies' bills of lading and similar sources to decide who gets those letters. The aim is to contact people who might be making numerous or large, untaxed purchases.
Last year, 8,000 letters went out. So an overwhelming majority of Floridians don't get that letter.
Dornseif isn't thrilled to be one of the few recipients.
"I don't have any problem paying taxes," he told me. He shops on line for convenience, not to avoid sales taxes, which many online sellers bill for anyway.
What he hates is what I would hate: Being told to go through three years of records to see which purchases weren't taxed. "It's not fun," he said.
The letter warns that he faces possible penalties and maybe an audit if he doesn't do it.
"It made me feel like a scofflaw," he said.
That letter also puts him on notice. From now on, he must inform the state of all such purchases and send his tax payment quarterly, all by mail.
So much for the convenience of Internet shopping.
Tom Lyons can be contacted at tom.lyons@heraldtribune.com or (941) 361-4964.
Web buyer beware -- of sales tax authorities
Letters from Florida's Department of Revenue don't usually bring happy news, and one that a reader just received is no exception.
It seems the odds are good that I won't get one like it. But your odds?
That depends on your shopping habits.
"The Florida Department of Revenue routinely reviews information from many sources to determine if Florida Sales and Use tax was paid on taxable transactions," the letter to Scott Dornseif began, vaguely enough.
It explained that purchases of items brought or shipped to Florida -- stuff ordered online, for example -- are subject to the usual sales tax even if the seller did not collect that tax. The letter told Dornseif it is up to him and other buyers to send the state the money, and that the state can assess penalties to those who do not.
It directed him to "review your records for the past thirty-six months" to reveal all such purchases, and fill out a form listing the items and prices. It listed possible examples: furniture, computers and software, fixtures, machinery, works of art, jewelry and building materials.
Dornseif, an information technology specialist who works in Sarasota, says he does a lot of his shopping on the Internet. Though he can't think of any purchase of late that by itself would make him owe more than a few dollars or so in tax, he figures his online shopping triggered the letter.
Probably so. Renee Watters, a Department of Revenue spokeswoman, says the state uses information gleaned from trucking and shipping companies' bills of lading and similar sources to decide who gets those letters. The aim is to contact people who might be making numerous or large, untaxed purchases.
Last year, 8,000 letters went out. So an overwhelming majority of Floridians don't get that letter.
Dornseif isn't thrilled to be one of the few recipients.
"I don't have any problem paying taxes," he told me. He shops on line for convenience, not to avoid sales taxes, which many online sellers bill for anyway.
What he hates is what I would hate: Being told to go through three years of records to see which purchases weren't taxed. "It's not fun," he said.
The letter warns that he faces possible penalties and maybe an audit if he doesn't do it.
"It made me feel like a scofflaw," he said.
That letter also puts him on notice. From now on, he must inform the state of all such purchases and send his tax payment quarterly, all by mail.
So much for the convenience of Internet shopping.
Tom Lyons can be contacted at tom.lyons@heraldtribune.com or (941) 361-4964.
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