Freaking Out- Got a Tax Due Notice that can't be right

[charlya]

I got a notice in the mail today saying I owe 1100.00 for Limited Sales, Exicse and use tax for 4/1/07 thru 6/30/07. I got my DBA in April but didn't do any business until June when I got my Sales Permit. I haven't received any paperwork from the state except for my certificate which I just got on August 15th other than this. What the heck is going on here?

I would appreciate any help. I certainly haven't done enough business to owe 1100.00 dollars.

Charlya

[Michelle Allmon]

If you don't file they send you one of those. You must have missed a filing. They just estimate, just file it and everything will be okay.

[Michelle Allmon]

PS - Even if you don't owe, you still have to file.

[charlya]

How do I file if they haven't sent me anything?

[akimartymar]

I always file online since it's easier. It's kind of like most other bills though, just cause you don't get a bill doesn't mean they don't expect you to pay it. Ya know what I mean. Just get online and file a tax claim for the past quarter for $0 if you didn't have any sales.

[charlya]

When I go online though it asks me for a pin #. I guess I need to call them.???

[CobyPhoto]

You need to call them asap. This is one of the most common errors people make once they get a tax ID number. They just assume since they made no sales for the period, they do not have to file a return. Fact is, once you have a tax ID number, you MUST file a return, as required by your estimation of income on your original application, even if you have NO sales at all.

If you move, it is YOUR responsiblity to inform the State Controllers office of the new address that the return should be sent to.

Trust me, they don't care if you didn't get the forms and will still fine you if you do not file a return. I have been involved with two sales tax audits in my time and neither was very pretty or enjoyable.

Ba advised however, they DO make mistakes! (Even though they won't admit that!)

CJ

[Gateruner]

Ditto what Coby said. Call them. It wasnt that unpleasant when I did it. Got through to a Live person and they actually helped me with my pin over the phone. If you set up the account to be paperless they will send you a notice via email.

[iCe]

I did the same thing... Forgot to file. After freaking out and posting on TPF I got the answer that I needed. Just call them. They've been there done that

[HotHolly]

Since we are talking about taxes - does anyone else find that they have to watch the tax office like a hawk for errors? And its never 'bank error in your favor' - its always 'bank error in their favor.' It means phone calls after each filing, which usually resolves it, but OMG - with how careful you have to be with taxes - its just unnerving. I was wondering if its a local issue or if others of you have been having similar issues?

[esi7esi7]

If your expected income is in the range specified for yearly returns, I would call them and tell them so. This way you only have to file once a year instead of quarterly.

Quarterly: Taxpayers who collect less than $500 state sales and use tax per month (or less than $1500 per calendar quarter) may file quarterly. Quarterly sales and use tax returns are due on or before the 20th day of the month after the end of the quarter in which the taxes were collected. For example, the first quarter covers January, February, and March, and the return must be filed on or before April 20th.
Yearly: Taxpayers who collect less than $1,000 in state sales and use tax per year may file yearly. Yearly sales and use tax returns are due on or before January 20th

[DonP]

I learned an expensive lesson, which is a little embarassing, but learn from me. I THOUGHT I had set things up so that I had to file only yearly. I ignored the quarterly statements because Ijust "knew" that the tax office sent them automatically regardless of whether I was filing yearly or quarterly. They came after me HARD. Many, MANY dollars in fees got me back in the good graces of the tax office, but it put a large dent in my bank account. If you get the statement, file. If you collected no taxes, file. Lastly, know whether you're supposed to file quarterly or yearly.

Been there, done that.

[MicWayWal]

Charyla,
Call them. Always call them. Don't delay. Any problems, questions, or disputes, CALL THEM. If you can't get a good answer or an answer you like on the phone, go to a local office ASAP. Carry your puppy dog eyes, and someone will help you. Someone will clear things up. Yeah they are very aggressive, but you don't want to mess with the Comptroller. They have more power to get their money than the Federal government does. I have known too many photographers that got on their bad side and it can get ugly. It won't be bad in your case but if this kind of thing goes on for years it will. Stay up with the Comptroller.