You laughed when I asked about tax implications of selling on the web, but...

laurentyvan

...check out this post on the lightside-the taxman cometh.paypal policy changes

cacheman

Well, looks like it is time to start demanding checks or money orders....

ajaan

Big brother is watching. New York State now requires its taxpayers pay sales tax on items bought in different states and mailed to NY.

ajaan

I think Scott is correct. This will really hurt PayPal in the end. More checks and money orders.

wybrit

Big brother is watching. New York State now requires its taxpayers pay sales tax on items bought in different states and mailed to NY.

Same here. We've had the Use Tax here since before I moved to this place. Many other states have it as well.

Conder101

<< <i>New York State now requires its taxpayers pay sales tax on items bought in different states and mailed to NY. >>


Most every state has had that for a LONG time. It is usually called a Use tax and the guy doing the ordering is supposed to forward the tax to the state. (Most people just ignore it. Some states have tried to form mutual taxing associations where merchants are supposed to collect sales tax for each state depending on where the customer is located and then forward the money to the appropriate state. But so far it has not worked because of objections from the merchants. And in the case of NY is they expect the merchant to collect the tax then the are expecting every merchant in the country to become a New York tax collector and that just isn't going to happen because they simply wouldn't report the purchase to New York. Is New York going to run around the country auditing merchants? On what authority?

ajaan

There is a place on the NYS tax form to fill in how much you spent on goods from out of state. Then you, the tax payer, is supposed to figure out the amount of tax to be paid. It is NOT the merchant who collects or keeps records of the purchase amount. It is the NYS tax payer.

docday2003

TAXES-GRRRRRRR

ajaan

<< <i>TAXES-GRRRRRRR >>


You can say that again. We, the wife and I, figured out our Federal taxes and came up with a refund of $1500. We have it direct deposited to out bank account. The refund was posted yesterday, it was $722 What the heck? We are not uneducated people. We can read and do the math. Why the heck did they cut out refund by more than half? I sure as hell hope they send an explanation.

laurentyvan

Don, you have what is commonly called the red a$$. It even shines in the moonlight... Figure out how many coins you could have purchased for that $700 odd, take two asprin, and post in the morning.

WhiteTornado

I don't have a problem with PayPal's policy. If someone has $24,000+ going through their PayPal account within a year, then chances are they are a business. At the very least, they are acting like one. PayPal is just following suit, IMHO, with what other money processors (like credit card companies) would do. Those that don't try to cheat the taxman should not have anything to worry about. On a last note, keep in mind that PayPal doesn't write tax laws; they are probably being told to follow the specific tax codes that apply to them.

ajaan

Tornado, I agree with you. PayPal was probably told to do this by someone. They do not write the tax laws. Who is PayPal providing the information to? The IRS? local state tax agencies?