TAXES on Ebay etc.

[Cudaized]

I was doing the dreaded income tax thing and when I got to my State (PA) return there was a question about buying things out of state without paying taxes. This also included internet purchases like on Ebay,Tire Rack,Year One, etc. I was wondering if anyone knows how close they monitor this stuff and if other States question these transactions. Since many of us use the internet to purchase our car stuff and it sometimes amounts to some pretty big bucks, it could be an issue. Am I just paranoid or is there a real concern here? What are your thoughts on this?

 

[Swept57]

I think for now it is more of an honor system, but I do believe the states will be looking at sites like eBay for a source of income. I can forsee eBay being required to report people selling more than some amount and the state classifying them as a business.

 

[Brads70]

I hear E-Bay is required to tell revenue Canada about sales on E-Bay for income tax purposes. Get ready...it's coming!

 

[AtomicWedgie]

Illinois asked me the same thing.

My tax prep guy aksed me in the grand scheme of things; How much do you really buy on-line? Most of the stuff that I buy throughout the year is bought locally.

The states will start keeping track of the on-line business soon. They have to get there money. They aren't about to let you get ahead in the world. They are going to nickel and dime you to death.

 

[Cudaized]

This is how the question appears on my State taxes:

Untaxed Out-of-State Purchases

If you bought something outside of PA and didn’t pay PA sales tax on it, you should still pay taxes on these items (this is called a use tax).

This includes:
- Internet, catalog, and mail-order purchases
- Telephone and TV shopping network purchases
- Purchases made in another state and brought back to PA.

It then goes on to tell you to use form PA-1 Individual Use Tax Return, to report it. (Use Tax !!! what's next tax for use of air?)

 

[H-Pattern]

sales tax

Just keep all your paper work.....Just in case they come calling..