Thread: my state, ID theft & "consumer tax"

Okay,

I have two beefs with my state today. Does every state do this or is it just mine?

1. Yesterday, I received my state's instruction booklet and returns for 2002. For the first time I noticed that "in order to expedite the return process" my state had the bright idea of making a preprinted mailing label to paste on the mailing envelope that had:

a. my full legal name
b. my full legal address
c. my complete social security number

Remember, this is supposed to go on the OUTSIDE of the envelope that I'm to mail back. Not that I'm dumb enough to actually use it, but this is what ticks me off. WHAT IF I had moved to a new address (and, God willing, I will this year)? A new resident of my apartment, having recieved this booklet, would have my complete name, address and social security number.

All they would have to do is apply for credit in my name and the DUMB CRAs would not check for fraud, as they'd just accept the old address as a new updated address.

I guess it's not enough for my state to wait for people to illegally open returns to get SS#'s. They don't want them to commit *that* extra crime, so why not eliminate that step and let them read it off the outside mailing label! DOY!!

Does your state do this?????


2. My state requires me to report "consumer tax" on purchases made outside of the state (i.e. mail order, internet, phone, etc...) in which I did not pay state sales tax.

I don't have a problem reporting the "consumer tax" but I have bought a LOT of things online, and I don't recall paying state retail tax on them. I don't know that I have the receipts for all of them now (though I could pull up CC statements).

How much at risk am I of being audited over this tax?

Do states have a minimum purchase dollar amount that has to be reported or d they want me to report sales tax onthe $2.50 CD that I bought from eBay?


Thanks,

What your state is trying to collect as a "consumer tax" is what is called a "use tax." In most states you are technically required to pay use tax on all items that you bought in another state and brought into your state (didn't pay your states sales tax on). The practice of merchants collecting sales tax for a state other than where the merchant is located was invalidated by the US Supreme Court about 10 years ago. If it were me and the amount of out of state purchases was reasonably small, I wouldnt report any "consumer tax," as in my humble legal opinion (I'm not an attorney) your state is on shaky legal and constitutional grounds with the "consumer tax."

NV Bone Doc

True health comes from within

what state is this marci?

btw happy new year and thanks for all of your help with my credit :)

nvbonedoc,

Do I need to report the PC I bought this summer? I just don't know what the lower limit is. And - not that I want to break the law re not reporting sales tax - but how in the world can they enforce this?

How do they know what people buy and where, unless they're looking at CC statements?




Allen - this is Alabama. And, you're welcome! :-)

we are neighbors - im in ga - tho im from nyc and still love the yankees

LOL

In my humble opinion (I'm not an attorney), unless it is a really large amount, I wouldn't worry about it as I don't think they can tie anything back to you.
Do what you think is right.
Also, check your receipt from the computer purchase and see if they collected Alabama Sales Tax. If you paid another states Sales Tax, you are only technically liable for the difference (if any). Unless they have an office or some other structure (called "situs" in legalese) in Alabama, I doubt they did. That begs another question, if the merchant is not required to collect and report out of state Sales Tax due to a Supreme Court ruling and lack of Congressional action, why should you?

NV Bone Doc

True health comes from within

It also begs the question, aren't the states Constitutionally prohibited from taxing or regulating interstate commerce?

I think that is what the issue was before the US Supreme Court- States can not tax something bought in another state absent Congressional legislation authorizing them to do so. Congress has repedately stayed away from the issue.

NV Bone Doc

YOUR POST

I have two beefs with my state today. Does every state do this or is it just mine?

1. Yesterday, I received my state's instruction booklet and returns for 2002. For the first time I noticed that "in order to expedite the return process" my state had the bright idea of making a preprinted mailing label to paste on the mailing envelope that had:

a. my full legal name
b. my full legal address
c. my complete social security number

Remember, this is supposed to go on the OUTSIDE of the envelope that I'm to mail back. Not that I'm dumb enough to actually use it, but this is what ticks me off. WHAT IF I had moved to a new address (and, God willing, I will this year)? A new resident of my apartment, having recieved this booklet, would have my complete name, address and social security number.

All they would have to do is apply for credit in my name and the DUMB CRAs would not check for fraud, as they'd just accept the old address as a new updated address.

I guess it's not enough for my state to wait for people to illegally open returns to get SS#'s. They don't want them to commit *that* extra crime, so why not eliminate that step and let them read it off the outside mailing label! DOY!!

Does your state do this?????

2. My state requires me to report "consumer tax" on purchases made outside of the state (i.e. mail order, internet, phone, etc...) in which I did not pay state sales tax.

I don't have a problem reporting the "consumer tax" but I have bought a LOT of things online, and I don't recall paying state retail tax on them. I don't know that I have the receipts for all of them now (though I could pull up CC statements).

How much at risk am I of being audited over this tax?

Do states have a minimum purchase dollar amount that has to be reported or d they want me to report sales tax onthe $2.50 CD that I bought from eBay?

REPLY

Until about 3 years ago, the IRS did that also. They stopped just for that reason - the possibility of Identity Theft they created. Also, they stopped requiring paid btax preparers giving THEIR SSN's on tax returns for the same reason.

You are entirely right to bitch about it to yoiur State Dept of Revenue.

As far as the "Use Tax" the State is trying to collect, I remember Illinois tried including a Use Tax line on their State forms a couple of years ago. They tax they collected didn't even pay for the extra ink to print the extra line and instructions. I don't think any state has enough auditors to audit individuals for Use Tax violations.