Cross-Border Tax Grabs Target Smaller Businesses

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tax-grabsStates aren’t just targeting the big companies like KFC, Amazon and MNBC for their cross border tax grabs. Plenty of regular businesses are getting hit too.

  1. A New Hampshire tire retailer was fined $109,000 by the state of Massachusetts. The reason? The retailer was selling tires to Massachusetts residents, who were crossing state lines to buy tires in sales tax-free New Hampshire. This one wound up in court. It also resulted in a new NH law prohibiting outside state tax departments from trying to force NH retailers into collecting taxes on sales to non-New Hampshire residents.
  2. In New York State, some 33 businesses and individuals were charged with criminal tax fraud and prosecuted during the fiscal period 2006-2007. In 2009-2010, that number increased to 327. This was due to New York redefining what it meant to do business in the state. If they decided you did business and you didn’t file (even if you didn’t know you should), they decided you not only owed tax money but that in some cases, it was a criminal charge as well.
  3. Wholesalers beware! States are targeting you for audit. Why? Because many wholesalers don’t have the proper exemption certificates in place for all states in which they are operating, or aren’t keeping up with proper exemption certificate reporting and confirmation.

Learn more about this new massive effort by states to take your money at

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