Information Age Biz Vs. Industrial Age Tax System


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4-26-1Got an Internet business? You’re certain to answer ‘yes’ if you’ve got a website that sells products or provides links to other sites that do. And that means you’ve
got a whole bunch of tax issues that you might not even realize.

But if you’re not selling products through a website, you might not realize you have the same Internet tax issues that the guy with a website does.

Do you:

  • Ship products?
  • Have virtual assistants?
  • Employ people in other states?
  • Use warehousing in another state?
  • Own real estate in another state?
  • Own personal property in another state?
  • Have a catalog?
  • Give live seminars in other locations?
  • Meet with customers or clients in other locations?
  • Sell to Colorado residents?
  • Sell to North Carolina residents?
  • Have affiliates of your website?
  • Pay referral fees for business?
  • Have any kind of connection with the state of Washington?
  • Sell services or products using Paypal?
  • Make money with a website?
  • Make money as an affiliate?

If you’ve answered ‘yes’ to any of these items, then there are some tax terms you’re going to want to get very familiar with:

Nexus
iTunes tax (tax on any kind of digital download)
Amazon tax
Paypal reporting requirements

4-26-2The problem is that a new type of business model (eBiz) is running headlong into an old fashioned tax model. The tax systems don’t know how to handle Information Age businesses.

This week is eBiz Tax week at USTaxAid! Here’s a round of what we’ll be discussing:

Tuesday, April 27, 2010 Amazon Tax

Learn what this tax really is and what it means to ever single business owner with a website. It’s not just a tax on Amazon. It’s a tax on you too, and it’s already been passed in four states, maybe five depending on a closer examination of Washington’s new state revision.

Wednesday, April 28, 2010 Look Out For Colorado & North Carolina

Do you sell to customers or buy from businesses in Colorado and North Carolina? You might not want to after you find out what these states are up to!

Thursday, April 29, 2010 The Secret eBiz Killer: The Digital Download Tax (iTunes Tax)

You might have heard of the iTunes tax and thought it had nothing to do with you. Think again! If you have nexus in one of these key states and you sell ANYTHING via digital download, you must collect and reimburse state sales tax.

Fri, April 30, 2010 – Selling with PayPal? New Reporting Requirements

A new reporting standard passed a few years ago will jump into the forefront by January 2011. That’s when PayPal (and yes, that means eBay) will be forced to turn over their records of who bought and sold on eBay. If you’ve regularly sold on eBay and haven’t reported the sales on your tax return, expect a letter from the IRS.

You don’t want to miss this information!



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