Newegg is turning over customer data so States can collect past tax ...

[neko77025]

Just seen Lon post this video ...
THIS IS SCARY ....
(Mods plz dont delete this if in wrong forum , move to the right one )

 

[Toothless]

Should've been paying taxes in the first place. If the egg wants me to pay taxes on last things so be it, goes right back into my healthcare.

 

[neko77025]

Should've been paying taxes in the first place. If the egg wants me to pay taxes on last things so be it, goes right back into my healthcare.

I agree but .. if my state comes for my for the 2014 - 2017 ..... I am screwed .... think i built 3 -4 computers for family ... I did not charge them anything but the cost of the parts ....

 

[Sasqui]

They're complying with local state sale tax requirements, which they are required to do. As much as it sucks from some people. They should have charged taxes when they could have, if they had even known.

Death and taxes.

 

[jboydgolfer]

I would imagine that unless you're buying massive quantities of components ,no one's going to come after anyone for something like this.

The transaction between whoever makes a purchase and the seller is legal , because the buyer pays tax(& newegg charges tax) ,so I don't see how this is going to affect anybody in anyway shape or form.

The IRS comes for revenue ,that's why it's in their name ... it's up to the seller to charge the buyer tax depending on their state ,and for the seller to report that tax to the government. If for example someone bought the components for a computer ,and build it ,and provided it to a third-party at no additional cost (over sale price) there would be nothing to report ,because they never charged anything ,and therefore unless the person they gave it to lied to the irs, theres no problem, and if a problem does arise, it would be for the 3rd party.

 

[lexluthermiester]

Just seen Lon post this video ... THIS IS SCARY .... (Mods plz dont delete this if in wrong forum , move to the right one )

Yeah, saw this too. Messed up.

Should've been paying taxes in the first place. If the egg wants me to pay taxes on last things so be it, goes right back into my healthcare.

It is the responsiblity of the state and retailer to collect sales taxes, at the point of sale. I would have told the state of Connecticut to go to hell and instructed them to enforce sales collection laws with retailers. Interstate commerce laws specifically protect citizens from states retroactively collecting sales tax in such a way. Lon might be paying, but if explored his rights and exercised them, he wouldn't have to.

because the buyer pays tax(& newegg charges tax)

No they don't. That is where this problem came from.

 

[neko77025]

I would imagine that unless you're buying massive quantities of components ,no one's going to come after anyone for something like this.

The transaction between whoever makes a purchase and the seller is legal , because the buyer pays tax(& newegg charges tax) ,so I don't see how this is going to affect anybody in anyway shape or form.

The IRS comes for revenue ,that's why it's in their name ... it's up to the seller to charge the buyer tax depending on their state ,and for the seller to report that tax to the government. If for example someone bought the components for a computer ,and build it ,and provided it to a third-party at no additional cost (over sale price) there would be nothing to report ,because they never charged anything ,and therefore unless the person they gave it to lied to the irs, theres no problem, and if a problem does arise, it would be for the 3rd party.

His state went after him for like 250.00 ... I am sure mine is like 600 - 800

 

[jboydgolfer]

i am inclined to believe that a a USE tax, which is what we are speaking about, isnt going to be prosecuted, or cause a IRS investigation, as the use tax would be far less than the cost of the investigation. im sure $250 is NOT an amount the IRS goes after. with all due respect to those claiming experience with being investigated over $250 in use taxes, i politely decline to believe that is a fact, or atleast a common case.

lets keep in mind to, that IRS, or any other entity would realize this is a VERY commonly overlooked taxable item, and would be VERY lenient to "offender"

No they don't. That is where this problem came from.

California, Indiana, New Jersey, Pennsylvania, Tennessee, and Washington are states they charges residents tax in. others , dont get charged, since NE doesnt retain a physical presence in the other states. but this is the case with many online retailers of a similar type.

 

[neko77025]

its not the IRS its the state .. State Sales Tax

 

[jboydgolfer]

okay,

*where ever you see the term "IRS" in my posts, please imagine it says "state"

And for the exact literally verbatim record it's not sales tax you're liable for it's technically defined as user tax. Sales tax is something a retailer pays user taxes something a buyer pays to the state


As I said in the beginning ,unless you've made massive purchases ,I wouldn't worry about it ,and it's traditional for people to wait at least to the financial years end before they report these user taxes anyway, so it's not like you're obligated to report these immediately. Getting worried about this would be like running around your house and throwing out all the pillows you ripped the tags off of. I wouldn't worry about it . But I'm sure some people will because they're looking for a reason. That's just my opinion

 

[lexluthermiester]

California, Indiana, New Jersey, Pennsylvania, Tennessee, and Washington are states they charges residents tax in. others , dont get charged, since NE doesnt retain a physical presence in the other states. but this is the case with many online retailers of a similar type.

Let me rephrase, they are not collecting sales/use tax in most states, including CT where Lon lives.

 

[jboydgolfer]

Let me rephrase, they are not collecting sales/use tax in most states, including CT where Lon lives.

They're not collecting sales tax in the other 43 states either. I'm fully aware of what the situation is I'm just arguing that worrying about it is moot, As well as an overreaction and in my opinion it's entirely unnecessary. My reasoning for saying it would be unnecessary to worry is the following. If it turns out you owe $500 in user tax ,your state is going to be understanding of the fact that you were ignorant to the law ,as 99.9% of all Americans are, and if they decide to seek the full amount ,they'll garnish your wages minimally over a year or two or more until they get it out of you.

 

[lexluthermiester]

Another point to this situation is that Lon made those purchases with a company credit card for items to be used by said company. That company is responsible for the taxes in question not Lon. Just because he ordered them from his personal Newegg account doesn't matter. A company card was used which places the legal liability squarely in the lap of the company he made the purchases for. He personally owes them nothing.

 

[jboydgolfer]

Another point to this situation is that Lon made those purchases with a company credit card for items to be used by said company. That company is responsible for the taxes in question not Lon. Just because he ordered them from his personal Newegg account doesn't matter. A company card was used which places the legal liability squarely in the lap of the company he made the purchases for. He personally owes them nothing.

100% correct.

just to be clear, im not knocking the sharing of the info, as i feel its rellevant to be informed on the topic, i just feel for the majority of citizens, there is a fear of the IRS, and the tax collector, when in reality, they are MORE than willing to work with those who need to pay out, and are very reasonable.

 

[newtekie1]

This guy is an idiot. He is expecting Newegg to basically fight for him so he can avoid paying taxes that he was supposed to pay. Sorry, Newegg isn't in the wrong here. They gave the IRS the information they asked for to help the IRS enforce the law. They have no obligation to their customers to cover up their customer's crime or fight their customer's legal battles when the customer is violating the law.

 

[lexluthermiester]

This guy is an idiot. He is expecting Newegg to basically fight for him so he can avoid paying taxes that he was supposed to pay. Sorry, Newegg isn't in the wrong here. They gave the IRS the information they asked for to help the IRS enforce the law. They have no obligation to their customers to cover up their customer's crime or fight their customer's legal battles when the customer is violating the law.

Maybe you should actually watch the video. Lon wasn't committing any crimes, deliberate or accidental.

 

[Norton]

They gave the IRS the information they asked for to help the IRS enforce the law.

This is a state use tax issue not an IRS one.

Got my notice from them (Newegg) last week, currently waiting for what the state has to say about it.... expecting a tax bill for around $100

 

[newtekie1]

This is a state use tax issue not an IRS one.

You can substitute IRS with the state agency responsive for tax collection in whichever state you want to pick.

Maybe you should actually watch the video. Lon wasn't committing any crimes, deliberate or accidental.

Last I checked, not properly paying taxes is, in fact, a crime. I mean, it put Al Capone in jail.

 

[R-T-B]

Last I checked, not properly paying taxes is, in fact, a crime. I mean, it put Al Capone in jail.

Yeah, but as pointed out legally the retailer should be eating this for failure to collect. It's their job with sales tax, not the consumers.

 

[lexluthermiester]

Last I checked, not properly paying taxes is, in fact, a crime. I mean, it put Al Capone in jail.

Al Capone was deliberately avoiding taxes. Lon and other Newegg customers are not doing that.

Connecticut is over-stepping it's authority. And as one of the commenters on that video pointed out, this is a use tax. Use taxes are very specific in how they are applied. In Lon's case it seems the tax liability falls on the company the products were purchased for, not Lon himself. I suspect that @Norton and many others are in similar situations. But even if it was for personal use, states can not charge use tax on personal property that is not used for capital gains, thus the term "use tax", they must charge sales tax. Collection of sales taxes are the responsibility of the retailer and enforcement of such collections falls on the states. Either way, the state of Connecticut has no right or authority to collect such a tax in such a way.

 

[rtwjunkie]

Yeah, but as pointed out legally the retailer should be eating this for failure to collect. It's their job with sales tax, not the consumers.

Actually in my state it is the buyer's job to pay. It is also a very explicit item on the Louisiana tax forms to enter the amount of goods bought online that state SALES tax was not charged for. Then, per a chart, you enter that number in. It gets deducted from any refund due or added to what you still owe, depending on your situation.

Hell, this state charges the difference in Sales tax from our 8.5% and the lower amount in another state if you buy a vehicle in another state, including if you move here years after buying a car in another lower sales tax state.

 

[DRDNA]

is this about taxes or privacy because I think one is guise'd as the other.

 

[lexluthermiester]

It is also a very explicit item on the Louisiana tax forms to enter the amount of goods bought online that state SALES tax was not charged for.

There are variations from state to state in how sales taxes are paid, but generally, it is the responsibility of the retailer to collect.

is this about taxes or privacy because I think one is guise'd as the other.

Lon's problem is about the privacy aspect which most people can get behind. While I agree that Newegg should have required due process, they are not bound by law to require it and can fulfill such a request if they feel it's in their best interest.

 

[R-T-B]

Actually in my state it is the buyer's job to pay. It is also a very explicit item on the Louisiana tax forms to enter the amount of goods bought online that state SALES tax was not charged for. Then, per a chart, you enter that number in. It gets deducted from any refund due or added to what you still owe, depending on your situation.

Hell, this state charges the difference in Sales tax from our 8.5% and the lower amount in another state if you buy a vehicle in another state, including if you move here years after buying a car in another lower sales tax state.

It's indeed confusing. I was going by Washington law, but that's probably why I didn't get a letter despite having a very large amount of purchases.

 

[DRDNA]

There are variations from state to state in how sales taxes are paid, but generally, it is the responsibility of the retailer to collect.

Lon's problem is about the privacy aspect which most people can get behind. While I agree that Newegg should have required due process, they are not bound by law to require it and can fulfill such a request if they feel it's in their best interest.

I agree but buying at a brick in mortar does not bind identity to product .....besides I think they would rather know who is stock piling water and food more than the taxes they are talking about. Data is power even if its your online purchases or grocery list ...but anywho