Man its frustrating to be in business some days.

Got a call last night from the Az Dept of Rev claiming that they didn't have sales tax reports from 3 months last year, and that they didn't have the last six years of my persoonal income taxes. Because not all of my income is from the contracting business I actually prepay a lot of my person incvome taxes to the state and have actually gotten refund checks from them the last several years.

Of course I went back and checked the reports they claim not to have and golly... Guess what. Appropriate checks cleared the bank about 2 weeks after they were printed and mailed. On top of that because these guys have pulled this kind of garbage before I never mail a report without a check in the same envelope. This way if the check has cleared I know for a fact that they received the report(s).

Grrr... Now I have to waste half my day doing their frigging job for them because all those thousands of dollars we approved a few years back for them to update their computer systems were apparently wasted.

Reply to
Bob La Londe
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I had that problem before. I solved it by faxing copies to every single department at their facility. Eventually someone called me back and said they got it. After that, they never bothered me again.

Jim Rojas

Reply to
Jim Rojas

At least you don't have to do monthly sales tax reports for AZ, Phx, Peoria, Glendale, Mesa, Tempe, Chandler, Scottsdale, Apache Junction....and on and on. Absolutely freekin stupid waste of time and MY money having tax licenses in a zillion different cities. Sheesh sometimes I'm writing out a check for

54 cents!
Reply to
Crash Gordon

No matter what business you think you're in, the two main functions of any business is to collect taxes and maintain records for the government. Fail in any way to perform those two duties and nothing else you'll do counts at all. In short you're screwed. The only other thing with penalties equally as severe is to be married and "fail to meet her emotional needs". In short you're unscrewed.

Reply to
Roland Moore

If you owe 54c write a cheque for 56c. Send their computer into a spin.

Reply to
CWatters

that would mess them up.

what a bunch o'cheepskates...i just noticed while renewing my car tags that they charged me for a 39 cent stamp...hey wait a minute...I renewed on the internet!

Reply to
Crash Gordon

It gets better. The same agent called back today saying that they got all my reports, cancelled checks etc, but they were for the wrong year. What??? Well, my records show that it was paid for that year too, so its back to the bank to ask them to pull another transaction from the archives. (I stopped the truck and made notes about everything the agent said. Even it ordering me around and interrupting me every time I tried to ask a question.)

If I wasn't actually starting to make money the last few years I would close the doors, pay whatever they said I owed and say screw them for any future revenue, but stupid small mind beuracrats wouldn't get it anyway. Atleast with a business they understand lost revenues. The employees may not care, but management makes that decision consciously.

Reply to
Bob La Londe

In some states you can pay the sales tax on the equipment you buy at the time of purchase. That way you don't have to deal with the monthly or quarterly disbursements to the state. That is what I do. It may cost me a few bucks but it is worth it to not have to deal with the state sales tax commission.

Reply to
AlarmCo

Wouldn't that be nice. LOL. No Az DOR has their own rules for contractors. Except for retail; parts, and repair service only we have a whole different set of rules.

We have to pay based on a eprcentage of total cost of the contracted job regardless of how much is labor and how much is parts. Its a real pain, and they have a jack bot mentality, and it always your mistake even when you show them its theirs, and you can't sue them under state law without permission from the state, and past expwerience has shown me even if you win a ruling against a state agency here in tax court they will just disregard it.

If I knew then what I know now, I would have done some research on different states and practices before starting a business. For anybody who has a choice I sure would not pick Arizona.

Reply to
Bob La Londe

AlarmCo inspired greatness with:

Isn't your labor taxable too?

Reply to
Chop Suey

Crash Gordon inspired greatness with:

is in tx

Reply to
Chop Suey

Reply to
I brive a dus

A bike ride to, oh, say, San Diego might do the trick. Might even get Doug to buy us lunch. (It is his turn) js

Reply to
alarman

Yes it is Crash. Not directly for service repair, but for contracting the rate is:

(Total Job Price) X .65 X (Tax Rate.)

Not (Tax Rate) X (Materials Cost) Only.

So, if you write a contract for a job that only takes a few dollars of materials and thousands of dollars of labor you wind up being required to pay sales taxes on labor.

However, for a service repair type job in general labor is not taxed.

Reply to
Bob La Londe

LOL. Well, I have really enjoyed going fishing lately. A trip to SD to meet Jack & Doug might be nice too. Probably should quit fishing tournaments for a while though. That kind of intensity to win is exciting, but it tires you out.

Actually I am planning a couple days off in the middle of the week at the end of March to ride up to Az Bike Week and just test ride some motorcycles from the various factory demo fleets.

Reply to
Bob La Londe

Bob La Londe inspired greatness with:

Well Crash??

Have you gleaned any information?

Reply to
Shinola

Yep I know that, but he said service.

The way I handle it is if it's a simple repair (like a system check + parts) I bill labor time no tax + the parts with their tax. If it looks like it's gonna be more then couple of hundred bucks I will give them a quote under the contractor rate terms which doesn't break out hourly or parts with tax. So the invoice might say what was done but doesn't break it down, the cntracted price is taxed at the contractor rate. Been doing it this way forever, even made it through sales tax audit once with no problems.

| > | >In some states you can pay the sales tax on the equipment you buy at | > the | > | >time of purchase. That way you don't have to deal with the monthly or | > | >quarterly disbursements to the state. That is what I do. It may cost | > me | > a | > | >few bucks but it is worth it to not have to deal with the state sales | > tax | > | >commission. | > | >

| > | | > | | > | Isn't your labor taxable too? | > | | >

| >

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Reply to
Crash Gordon

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