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Question on GunBroker Tax Collection: Locust Fork please read.
thunderbolt
Member Posts: 6,041 ✭✭✭
2023 is the first year I've sold guns on GunBroker since the site began collecting sales taxes. I've seen the printout for the tax statement. Will this be enough for the tax man or is there other documentation I'm not seeing?
Comments
Ask Locust Fork, no one knows the auction side better. Word.
Thanks for the suggestion. Locust Fork your advice would be appreciated.
Yes, that is enough to show you are paying if you are audited, but if you have a tax ID number you still have to file each month but list "zero" sales tax collected.
When the website started collecting taxes I stopped paying Alabama for my sales. I got a call from an auditor saying that I have not filed taxes for several months. I told them I didn't pay them because GB is now collecting the sales, that is when I learned I still had to file a report each month. They can charge you a late fee if you don't file anything at all.
LF is correct about filing zero returns for a state you are registered in for ST. In fact some states have some pretty hefty non-filing fees and they will not waiver the fee even after you file a zero return.
With as many guns as you sell, Locust Fork, I expect you have to file in all 50 states now?
No, just Alabama.....the out of state tax is all on Gun Broker's end. I never had to file any taxes for anything sold in any other state. That only happens with stores that have locations in various areas or websites that are forced to collect taxes. Us regular folk just have our own states to deal with. Since GB is paying it I just report "0" to keep from being charged the $50 non filing fee each month.
Funny thing....when the auditor was going over things with me on how I needed to file "some kind" of tax report each month just to keep things compliant she said I would need to send them something showing that GB was paying Alabama's sales tax. I told her that was not my job and she needed to track that down herself. She was not happy with that answer.
I should note.....if you do not have a tax ID number you just have to make sure you collect the correct amount from your buyer. You will not have to prove anything at all as far as sales tax goes, because that is all on Gun Broker to deal with. You will never be the responsible party to prove you collected sales tax unless you have a tax ID number and then you just have to show that your being charged through the website, so you are not the one paying those taxes.
Here's a very late "Thanks" for the advice. Happy New Year as well.
A very late you are welcome! I'm happy to help.
I'm in Texas, and I was filing my tax return and payment quarterly. When Gunbroker began doing that for me (THANKS, GUNBROKER!!!) I exercised my option to file annually. In January, I send the Comptroller whatever sales tax I have collected. It usually isn't very much, since most of my sales go through Gunbroker.