Have not heard a word from the State about my income tax audit since they sent the updated list of necessary documents, and revised the sanctions against me for not signing the waiver to the Statute of Limitations.
My accounting student has printed over four reams of paper in preparation, and about 60 hours of extra work has gone toward preparation for the audit. Only two vendors have been difficult to contact, don’t return calls, about their reseller certificates.
I have found that I have good reason to charge computer – related labor at 1% sales tax as opposed to the 6% I have always charged (until this year it increased to 6.35%). And web services are non-taxable. So perhaps I should talk to the State again about the Statute of Limitations. Perhaps they will refund a whole heck of a lot of money.
We found a strange exemption to sales tax as well. If you buy one car seat that is sales tax exempt. But if you buy a second one it is not. How the heck is anyone going to know they should pay tax on the second car seat? How will they pay it? If that isn’t a stupid law, please someone explain it to me.
Copyright 2012 Kent Johnson
