200 items and 20k limit

[triplex]

Thank you. Nobody explained me this in details like you did, lol.

[agent006140]

I hope you never get audited!
I have just been audited by the state,the auditor is a contractor and allotted 2 days to complete an audit.
I buy those spiral binder books in the supermarket when it is on sale for 19 cents and everytime I receive an order,I write down the date,venue,item description,shipping ,cost of good sold,shipping spent,and if it is a foreign country ,name of the country and if local ,sales tax collected by Ebay for me.
Ebay will calculate and collect the sales tax for me and at the end of the year I will send it to the state dept.
The auditor is a nickpicker,he actually studied the sales ledger line by line,most are from out of state buyers,he also studied my bank statements.
To prove I have sold to local buyers,I have to show him Paypal history,Paypal does keep the address of the buyer .
For Etsy sales,I have to list all the orders going back 4 years.
(State audit 4 years ) .
He has caught some mistakes I made,I was asking Ebay to charge 8.5%,it should be 8.25%
I was not collecting sales tax for my Etsy sales,so I would be paying for them.
I have not seen the results yet,but it looks like the total sales tax I should have collected and remitted should be around $1k for the last 4 years,and I remitted $800,so I would be paying the difference,not sure if there is any penalty.
So make sure you go to supermarket and pick up a spiral binder for 19 cents when school opens,you would need one /

[ddm50]

InkFrog can calculate all sales on all accs.

[agent006140]

does it give you a report of all orders received in one year ,listing the shipping address of the buyer and the order amount and sales tax collected?
You know Ebay is collecting sales tax for all states and Australia and we only get to keep our state 's sales tax ,Ebay remit the rest to each state and Australia

[martyjump]

Just make excel spreadsheets for income, expenses, and keep receipts in a folder. Print out receipts for online purchases. There's more to it than this of course but being organized is your best bet in case you are ever audited.

[cafonabob]

Wow. Why didn't you retain an attorney or a tax advisor?


I have not seen the results yet,but it looks like the total sales tax I should have collected and remitted should be around $1k for the last 4 years,and I remitted $800,so I would be paying the difference,not sure if there is any penalty.
So make sure you go to supermarket and pick up a spiral binder for 19 cents when school opens,you would need one /[/QUOTE]

[triplex]

Originally Posted by cafonabob

Wow. Why didn't you retain an attorney or a tax advisor?


I have not seen the results yet,but it looks like the total sales tax I should have collected and remitted should be around $1k for the last 4 years,and I remitted $800,so I would be paying the difference,not sure if there is any penalty.
So make sure you go to supermarket and pick up a spiral binder for 19 cents when school opens,you would need one /

[/QUOTE]

Paying an attorney/tax advisor 3000$ for some word...and for his 800$ tax he have to pay , lol

[agent006140]

My accountant handles this state audit for me,the fee is less than $3k.You can keep records as much as you like,but what a state auditor wants to see is the shipping address of each order ,he does not trust you are telling the truth until he sees your order and the shipping address of the buyer.
so you either have to keep copy of your shipping label or rely on Paypal and Etsy records..
The audit is a big pain as it covers 4 years and local orders account for 2% of my total sales!
and he also will examine your bank statements,as not all sales are paid with paypal and credit cards,if it is paid with cash or check or money order,it would show up in your bank statement.so it is better to keep your personal transactions away from the bank account.
I just found out yesterday that the governor of our state wants to raise the sales tax and lower property tax!

[triplex]

Do they ask you to bring bank statement or they automatically check them? Can you have an TD BANK account, and BOA account, but only provide statements from BOA bank account? or they check with all banks (there are rumors that IRS, defense lawyers,etc are directly connect to banking system,etc)