Hick is an honest businessman. He's not out to scam anybody, whether customer or government. He gives refunds or exchanges if a buyer is not satisfied with the merchandise. He pays his sales tax in the required time frame. So imagine our shock when Hick got a past-due sales tax bill from the department of revenue!
His sales tax is paid on a yearly basis. From January to December, due by the end of the following January. We sent in the completed form with a check, which cleared. Done for another year. Or so Hick thought!
The past-due letter was dated April 10. That's the day we got it! How magical. The state of Missouri can make sure you receive the letter on the day it is generated! Even though the metered-mail stamp said April 7. Something fishy was stinking up this demand letter.
Without getting too specific, Hick's sales tax was around $700. This bill was for about $1600. It showed a total due of just over $2200, with credit for the $700-something payment. Hick was mystified. How in the Not-Heaven could he accrue this amount of sales tax?
Complicating matters were two facts. In July, Hick received a No Tax Due letter from the DOR, which he needed to renew his business license. So obviously he owed nothing at that point. Then the original Storage Unit Store flea market closed in October. At which time Hick stopped selling, found his new location, and started working on his unit (heh, heh) to make it store-like, and install electricity. So he had no sales from October to December, save a couple of Buy/Sell/Trade transactions that didn't need his storefront. He still kept track of them, and included the sales tax in his 2022 total.
So... according to the DOR, Hick made a tremendous amount of sales from July, August, and September. Do you smell it yet?
The deadline to pay the past-due amount is April 25. Hick would just pay and be done with it, IF he thought he owed it. There is no way that he does. He tried numerous times to call the DOR for an explanation. You know how that goes. Nobody will talk to you in person, you only get a recording that tells you to go online. Which doesn't solve the problem when you need an explanation of these charges.
It doesn't help matters that it's prime income tax time for procrastinators. Hick called a Tax Guy in town and made an appointment, which he couldn't get until Saturday. He took a copy of our state and federal income tax returns, in case information on them had spurred these new sales tax charges. [Found out they had nothing to do with Hick's sales tax.]
Tax Guy went online to look at Hick's sales tax info. Not sure if he has special access, or if Hick (meaning ME) could have looked this up at home. Anyhoo... Tax Guy found out that Hick had been billed THREE TIMES! No explanation. Not billed quarterly, as some accounts are set up. It still showed that Hick's business pays annually. But there were THREE billings. Tax Guy edited the account to delete two of them. Not sure how he could do that! Maybe Hick could have done it, though that would seem to be a system rife with fraud possibilities if a person can just delete what they think they don't owe!
Anyhoo... the only issue, the reason we could not figure out in even numbers that this original bill was 3X the actual amount due, was because unbeknownst to Hick, the Backroads city tax rate had increased at some point during the year. So he actually DID owe more than the $700-something, but it was an amount of $31. NOT $1600. Which is quite a difference!
Tax Guy said he'd send it in for Hick for a fee of $20, or Hick could do it online himself for free. Hick said for Tax Guy to do it and be done with it. Except when he tried, the website would not take our debit card, and would not take a credit card. So Hick had to drive home for a check (you don't think I let him carry those around, do you???) and drive back to give it to Tax Guy. So I guess it's a good thing we didn't try to do it online.
Hick says next year, he will take his business records to Tax Guy to pay his sales tax. The new SUS2 location is outside of city limits, so there's no city sales tax to deal with, just county and state sales tax. It's really not complicated, providing you don't get triple-billed by the government...
I am so happy we don't have to deal with sales tax now that we are retired. But, how many of the storage unit sellers pay sales tax? I am sure some of them don't realize they should be, while most of them just don't unless they get caught. Just think of the revenus stream that would be created if drug dealers paid sales tax ......
ReplyDeleteNOBODY ELSE! Due to the nature of some of Hick's products, he makes sure he is fully licensed, and complies with regulations. Others sell the same products, but the responsibility falls on them. Hick is not the Flea Market Police, though it annoys him that others just sell anything all willy-nilly.
DeleteDidn't I read something about how thieves are supposed to report their ill-gotten goods as income on their tax returns? I guess drug dealers should do the same with their profits.
Like Hick, I would rather just pay my fair share and not have to worry about getting caught. My maternal grandfather never paid income tax. Drove my Dad crazy! He was a tobacco farmer and one would think they would catch up with him eventually, but they never did!
DeleteWe also know someone who doesn't file income tax. The joke is on them, because the way things are set up these days, they could be getting a refund, even though they don't work, from child tax credits and head of household stuff. You'd be amazed. Well. Probably you wouldn't. Getting something for nothing is becoming common...
DeleteIt's so very frustrating when you want to resolve an issue and need to talk to a person who can help you but are unable to reach a person due to the way they end the phone call by directing you to an online site. Tax Guy was worth it!
ReplyDeleteYes! I guess it's easier for the government to triple-charge people that way! Tax Guy was definitely worth it.
DeleteInour neck of the woods everyone received two persoanl property tax forms, two different amounts. Something fishy!
ReplyDeleteDang! I hope you could get someone to TALK TO about it, to figure out which amount was correct!
DeleteSome Hacker has found himself an easy way to make money, there's probably a lot of people out there that wouldn't question that bill and just send in a cheque.
ReplyDeleteIf it hadn't been so much more than what he actually owed, Hick would have believed he made an error, and mailed in a check. Somebody must be skimming that extra money, and re-setting the accounts. It's not like a Mom and Pop store down the street, whose teenage worker was distracted by the phone, and made a mistake in billing!
DeleteA duplicate billing might be understandable, but three times? I do wonder where the money goes.
ReplyDeleteMe too! They don't even know what Hick owes until he REPORTS IT HIMSELF, when paying the sales tax. So once he notified them of his sales, they compared the amount he paid with the city, county, and state tax rates. That's how he came up $31 short. But how did that generate THREE bills for the full amount? Something is definitely fishy.
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