Bonnie Hellman on tue 5 jun 07
I recommend to my self employed business clients that they apply for and get
a tax ID number, also called an EIN (employer identification number) even if
you do not plan to have employees, so that when you are required to give
your "social security number" for your business, you can give them the tax
ID number.
You apply for this EIN online on form SS-4, but be sure to print out a copy
of the form you submit BEFORE you submit it. Then when you receive your EIN
aka tax ID number, WRITE IT DOWN.
There are a few other reasons why it makes sense to get an EIN for your sole
proprietorship, all of them good reasons.
Bonnie
Bonnie D. Hellman, CPA & CO & PA
Ouray, Colorado 81427
As required by United States Treasury Regulations, you should be aware that
this communication is not intended or written by the sender to be used, and
it cannot be used, by any recipient for the purpose of avoiding penalties
that may be imposed on the recipient under United States federal tax laws.
----- Original Message -----
From: "Lois Ruben Aronow"
To:
Sent: Tuesday, June 05, 2007 3:22 PM
Subject: Re: Tax Exempt status or not
>I have a Certificate of Authority, which is what it is called in NY. My
>tax
> # is my SS#, as I am a sole proprietor.
>
> My clay supplier asks for a new copy every year, which I fax. My SS# is
> NOT
> on this form. You should not be giving your SS # to anyone.
>
> Just a reminder, if you do this, you also need to report sales and report
> and pay sales taxes collected. It's not a "get out of tax fee" card.
> Also,
> you should NOT be paying tax on out-of-state purchases unless there is tax
> reciprocity, like there is in NY/NJ/CT.
>
> ..Lo
>
>
>> -----Original Message-----
>> From: Clayart [mailto:CLAYART@LSV.CERAMICS.ORG] On Behalf Of
>> Doug Jones - Amelia Island Pottery
>> Sent: Tuesday, June 05, 2007 2:44 PM
>> To: CLAYART@LSV.CERAMICS.ORG
>> Subject: Tax Exempt status or not
>>
>> Do most of you have a tax number to purchase your items
>> without sales tax?
>> I have a tax number that I provide to my suppliers and they
>> do not charge tax on items that will be used in the
>> production of my products (ie: glaze chemicals, clay etc).
>> The problem is, when you place an order by phone, you need to
>> be very specific about your tax number. Most vendors that I
>> deal with keep it on file, right there with my name, address
>> and phone info. However, I have had problems with Axner
>> Pottery on my last two phone orders and now they want me to
>> deal with Laguna in Calif(Laguna bought out Axner) to correct
>> their mistakes in the Florida store. I think it is time to
>> find another supplier if they can't get their act together.
>> With the cost of materials and propane going up and up, I
>> don't need to be over charged. It will cost as much in phone
>> bills to try and correct Has any one else had these kind of
>> problems? How do you get it corrected long distance,
>> especially when the employees are not receptive?
>> I guess I'm just whinnng again - LOL
>>
>> ______________________________________________________________
>> ________________
>> Send postings to clayart@lsv.ceramics.org
>>
>> You may look at the archives for the list or change your
>> subscription settings from http://www.ceramics.org/clayart/
>>
>> Moderator of the list is Mel Jacobson who may be reached at
>> melpots@pclink.com.
>
> ______________________________________________________________________________
> Send postings to clayart@lsv.ceramics.org
>
> You may look at the archives for the list or change your subscription
> settings from http://www.ceramics.org/clayart/
>
> Moderator of the list is Mel Jacobson who may be reached at
> melpots@pclink.com.
Bonnie Hellman on tue 5 jun 07
Ken's information is applies to most (if not all) states that charge sales
tax. If individuals, not just businesses, make out-of-state purchases that
would have been subject to sales tax in their home state, then their state
of residence expects those individuals and businesses to pay USE TAX which
is always at the same rate as sales tax.
All states have their sales tax regulations online, although there are
people in the sales tax office who will be happy to answer your questions
and help you pay sales and use tax. More and more states have a line on
annual individual tax returns asking you to pay use tax where you did not
pay sales tax and should have paid.
Bonnie
Bonnie D. Hellman, CPA in CO & PA
Ouray, Colorado 81427
As required by United States Treasury Regulations, you should be aware that
this communication is not intended or written by the sender to be used, and
it cannot be used, by any recipient for the purpose of avoiding penalties
that may be imposed on the recipient under United States federal tax laws.
----- Original Message -----
From: "Kenneth D. Westfall"
To:
Sent: Tuesday, June 05, 2007 4:24 PM
Subject: Re: Tax Exempt status or not
> You also need to remember sales tax law differ in every state. Here in
> West Virginia if you buy something from the Internet or by mail and it is
> a
> taxable item, and you don't pay the sale tax to the state it came from you
> still have to pay what is called "Use Tax" to the state of WV instead of
> sales tax. They get you coming and going!
> Only those items that go into the pottery are tax exempt in WV like clay,
> chemicals, handles, and Cones (grey area), but not trimming tools,
> sponges,
> buckets, etc. Not all state have reciprocal agreements on business
> licences ie tax number so they may have to charge you sales tax unless
> your
> registered in the state your buying clay. WV does with OH, PA but may not
> with GA, or CA so be sure before you start going else where it may not be
> there fault for having to charge sales tax.
>
>
>
> Kenneth D. Westfall
> Pine Hill Pottery
> HC 80 Box 32
> Harrisville, WV 26362-9507
> kenneth@pinehillpottery.com
> http://www.pinehillpottery.com
>
> ______________________________________________________________________________
> Send postings to clayart@lsv.ceramics.org
>
> You may look at the archives for the list or change your subscription
> settings from http://www.ceramics.org/clayart/
>
> Moderator of the list is Mel Jacobson who may be reached at
> melpots@pclink.com.
Bonnie Hellman on tue 5 jun 07
Usually I provide a paper copy of my state's actual exemption certificate,
which I have completed, including my sales tax number and my signature.
I also urge my tax clients to get a signed copy of the sales tax exemption
certificate from anyone to whom they sell at wholesale, and to keep this
copy in their files forever, or at least 3 years beyond the date of the last
sale to the wholesale customer. If a sale is tax exempt by virtue of being
interstate commerce, then keep the mailing/shipping receipt as your proof of
exemption.
I used to joke that at least one state gave their new revenue agents a
personality test, and if they flunk this test, they are assigned to the
sales tax department. Now I don't think it is a joke. You will want to
be SURE you have proper documentation, not just a number, from any sales
that are not subject to sales tax from your ceramics business.
Most places I purchase from require me to either hand them a paper copy,
mail them a paper copy or fax them a paper copy. I think this is good
policy, so I willingly participate.
If you fail to collect sales tax and you should have collected sales tax, on
audit, your state sales tax people will make YOU pay the sales tax yourself.
Bonnie
Bonnie D. Hellman, CPA in CO & PA
Ouray, Colorado 81427
----- Original Message -----
From: "Doug Jones - Amelia Island Pottery"
To:
Sent: Tuesday, June 05, 2007 12:43 PM
Subject: Tax Exempt status or not
> Do most of you have a tax number to purchase your items without sales tax?
> I have a tax number that I provide to my suppliers and they do not charge
> tax on items that will be used in the production of my products (ie: glaze
> chemicals, clay etc).
> The problem is, when you place an order by phone, you need to be very
> specific about your tax number. Most vendors that I deal with keep it on
> file, right there with my name, address and phone info. However, I have
> had problems with Axner Pottery on my last two phone orders and now they
> want me to deal with Laguna in Calif(Laguna bought out Axner) to correct
> their mistakes in the Florida store. I think it is time to find another
> supplier if they can't get their act together. With the cost of materials
> and propane going up and up, I don't need to be over charged. It will cost
> as much in phone bills to try and correct
> Has any one else had these kind of problems? How do you get it corrected
> long distance, especially when the employees are not receptive?
> I guess I'm just whinnng again - LOL
>
> ______________________________________________________________________________
> Send postings to clayart@lsv.ceramics.org
>
> You may look at the archives for the list or change your subscription
> settings from http://www.ceramics.org/clayart/
>
> Moderator of the list is Mel Jacobson who may be reached at
> melpots@pclink.com.
Lois Ruben Aronow on tue 5 jun 07
> Having said that, remember too that you may only claim
> exemption for items that you purchase that will actually * be
> used in the making of items for resale*. In other words, if
> you sell pots, clay and glaze materials can be considered
> valid. New tools, wheels and kilns cannot. The supplies you
> exempt under the law must be a_part_of_the_final_product_ to
> qualify.
I'm guessing that this is because of depreciation, amortization and all that
other nonsense that goes along with your annual tax reports.
I bought my kiln and wheel (albeit, years ago) out of state and did not have
to pay sales tax. I can only speak for New York state and city laws.
> I was at one time able to exempt sales tax on purchases of
> mop buckets, mop heads, brooms, cleaning towels, and all the
> other equipment we used in our business to provide our
> services, but no longer.
Try a restaurant supply wholesaler. Here in NY, we have Jetro, which sells
to the trade, wholesale only. Our certificate of authority allows us to
shop there and stock up on the items you mention. Additionally, Costco
offers a business account, which, I believe, offers the same sort of deal.
As usual, abide by the laws of your state.
..lo
Doug Jones - Amelia Island Pottery on tue 5 jun 07
Do most of you have a tax number to purchase your items without sales tax?
I have a tax number that I provide to my suppliers and they do not charge
tax on items that will be used in the production of my products (ie: glaze
chemicals, clay etc).
The problem is, when you place an order by phone, you need to be very
specific about your tax number. Most vendors that I deal with keep it on
file, right there with my name, address and phone info. However, I have
had problems with Axner Pottery on my last two phone orders and now they
want me to deal with Laguna in Calif(Laguna bought out Axner) to correct
their mistakes in the Florida store. I think it is time to find another
supplier if they can't get their act together. With the cost of materials
and propane going up and up, I don't need to be over charged. It will cost
as much in phone bills to try and correct
Has any one else had these kind of problems? How do you get it corrected
long distance, especially when the employees are not receptive?
I guess I'm just whinnng again - LOL
Lois Ruben Aronow on tue 5 jun 07
I have a Certificate of Authority, which is what it is called in NY. My tax
# is my SS#, as I am a sole proprietor.
My clay supplier asks for a new copy every year, which I fax. My SS# is NOT
on this form. You should not be giving your SS # to anyone.
Just a reminder, if you do this, you also need to report sales and report
and pay sales taxes collected. It's not a "get out of tax fee" card. Also,
you should NOT be paying tax on out-of-state purchases unless there is tax
reciprocity, like there is in NY/NJ/CT.
..Lo
> -----Original Message-----
> From: Clayart [mailto:CLAYART@LSV.CERAMICS.ORG] On Behalf Of
> Doug Jones - Amelia Island Pottery
> Sent: Tuesday, June 05, 2007 2:44 PM
> To: CLAYART@LSV.CERAMICS.ORG
> Subject: Tax Exempt status or not
>
> Do most of you have a tax number to purchase your items
> without sales tax?
> I have a tax number that I provide to my suppliers and they
> do not charge tax on items that will be used in the
> production of my products (ie: glaze chemicals, clay etc).
> The problem is, when you place an order by phone, you need to
> be very specific about your tax number. Most vendors that I
> deal with keep it on file, right there with my name, address
> and phone info. However, I have had problems with Axner
> Pottery on my last two phone orders and now they want me to
> deal with Laguna in Calif(Laguna bought out Axner) to correct
> their mistakes in the Florida store. I think it is time to
> find another supplier if they can't get their act together.
> With the cost of materials and propane going up and up, I
> don't need to be over charged. It will cost as much in phone
> bills to try and correct Has any one else had these kind of
> problems? How do you get it corrected long distance,
> especially when the employees are not receptive?
> I guess I'm just whinnng again - LOL
>
> ______________________________________________________________
> ________________
> Send postings to clayart@lsv.ceramics.org
>
> You may look at the archives for the list or change your
> subscription settings from http://www.ceramics.org/clayart/
>
> Moderator of the list is Mel Jacobson who may be reached at
> melpots@pclink.com.
Kenneth D. Westfall on tue 5 jun 07
You also need to remember sales tax law differ in every state. Here in
West Virginia if you buy something from the Internet or by mail and it is a
taxable item, and you don't pay the sale tax to the state it came from you
still have to pay what is called "Use Tax" to the state of WV instead of
sales tax. They get you coming and going!
Only those items that go into the pottery are tax exempt in WV like clay,
chemicals, handles, and Cones (grey area), but not trimming tools, sponges,
buckets, etc. Not all state have reciprocal agreements on business
licences ie tax number so they may have to charge you sales tax unless your
registered in the state your buying clay. WV does with OH, PA but may not
with GA, or CA so be sure before you start going else where it may not be
there fault for having to charge sales tax.
Kenneth D. Westfall
Pine Hill Pottery
HC 80 Box 32
Harrisville, WV 26362-9507
kenneth@pinehillpottery.com
http://www.pinehillpottery.com
WJ Seidl on tue 5 jun 07
Doug:
What I am about to write applies solely to potters in the state of FL.
That's all I am familiar with, so I'm "going with what I know" as it were.
In FL, you have to provide your supplier with a copy of your certificate
of exemption.
Period. You are no longer able to just "give them the number". They
changed the law
some time ago (a couple years?) to try to stop the bleeding off of sales
tax revenue.
Florida businesses get a new certificate yearly (it comes with your
sales tax coupon book),
so it is no big deal to make copies, and send one out with every order
placed in January etc.
That's how it's done now. If you file your SS-15 online now, and not in
person, you will receive a
new certificate in the mail in December or January.
Having said that, remember too that you may only claim exemption for
items that you purchase
that will actually * be used in the making of items for resale*. In
other words, if you sell pots, clay and glaze materials
can be considered valid. New tools, wheels and kilns cannot. The
supplies you exempt under the law must be
a_part_of_the_final_product_ to qualify. There was formerly a large
"grey area" with different businesses claiming
that items they used were justified because they were used in making the
final product or service,
but that has been tightened up considerably. Your accountant can advise
you for specifics to your business.
I was at one time able to exempt sales tax on purchases of mop buckets,
mop heads, brooms, cleaning towels, and all the other equipment we used
in our business to provide our services, but no longer.
Now, only items actually used in the performance of that service, that
is actually "left" at the customer's location is
allowed, such as toilet tissue, polishes, paper towels. The jury is
still out on "disposable" items like "Swiffer"(TM) cloths.
Bottom line: I pay more than triple the sales tax I used to. I miss
that "big grey area" , and so do many small businesses here.
If you have any questions, the folks at the Department of Revenue at
your local office or in Tallahassee can help you figure out just what
is exempt and what isn't for your business. Give them a call, they have
nothing better to do.
Best,
Wayne Seidl
Still on the FLDOR merry go round...and the years go by....
Doug Jones - Amelia Island Pottery wrote:
> Do most of you have a tax number to purchase your items without sales tax?
> I have a tax number that I provide to my suppliers and they do not charge
> tax on items that will be used in the production of my products (ie: glaze
> chemicals, clay etc).
> The problem is, when you place an order by phone, you need to be very
> specific about your tax number. Most vendors that I deal with keep it on
> file, right there with my name, address and phone info. However, I have
> had problems with Axner Pottery on my last two phone orders and now they
> want me to deal with Laguna in Calif(Laguna bought out Axner) to correct
> their mistakes in the Florida store. I think it is time to find another
> supplier if they can't get their act together. With the cost of materials
> and propane going up and up, I don't need to be over charged. It will cost
> as much in phone bills to try and correct
> Has any one else had these kind of problems? How do you get it corrected
> long distance, especially when the employees are not receptive?
> I guess I'm just whinnng again - LOL
>
> ______________________________________________________________________________
> Send postings to clayart@lsv.ceramics.org
>
> You may look at the archives for the list or change your subscription
> settings from http://www.ceramics.org/clayart/
>
> Moderator of the list is Mel Jacobson who may be reached at melpots@pclink.com.
>
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