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sabufoley
sabufoley asked in Business & FinanceTaxesUnited States · 1 decade ago

Business Didn't Pay State Sales Taxes?

I have a family member who is in a pretty large amount of trouble. I just found out about it today.

Someone from the IRS came by there store and told them that they have not filed anything since the beginning of 09 showing there store made any money. So obviously they haven't been paying there state sales tax for there store also. Well this store has been making money in this time. For some reason or another no taxes were ever paid on it. I couldn't tell you why.

So the lady from the IRS told them today in person that they were going to be "locking" up the store in two weeks or earlier because of failure to pay state sales taxes. How much trouble is this person in? Is there any way to work this out or at least prolong it? When they called the person from the IRS to talk about this they only got a message and couldn't speak with them today. My family member has had serious health issues these last few years and was going to go over this with the IRS agent. Would this make any difference?

Update:

Sorry about saying IRS. It was someone from the state. I'm not sure who exactly they were. I was there when it happened and the lady had a badge. She said she had been trying to get in contact with the owner. She gave us some paperwork showing the store hasn't paid or filed anything since the beginnig of 09.

Then she said she was going to "lock up the store" in one or two weeks. She said for us to have the owner call her asap. She was not very nice. When the owner tried to contact her there was no answer and only left a message. I know for a fact the owner does not have the money to fix this problem right now. Can they close this store this soon. We only first saw her today. Maybe the owner has gotten similar mail. I'm not sure. I'm just trying to help.

5 Answers

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  • Girl
    1 decade ago
    Favorite Answer

    The IRS is federal, the person that visited the store is probably from the state sales tax department. I worked as a public accountant in New York State for many years and I've had some clients who were "shut down" by the state. If you fail to file and pay your sales taxes, you will lose your "Certificate of Authority to Collect Sales Tax" and therefore will not be able to operate a business that sells taxable goods for sales tax purposes. It is very serious. The owner of the business or another authorized person must call the state sales tax department to try to resolve this.

  • card-ron
    Lv 7
    1 decade ago

    I am sorry you and your family are under stress right now, but you need to get better information about what is going on. The IRS is a federal agency and no IRS agent will care about state income or sales taxes. Further, it is highly unlikely even a state agent would suddenly show up and announce the store would be closed in two weeks or less because of unpaid taxes. The story simply does not add up.

  • Judy
    Lv 7
    1 decade ago

    The IRS is federal and has nothing to do with sales tax which is state. So either the person was from the state, not the IRS, or maybe there are TWO problems. In either case, the owner is most likely in serious trouble.

  • JayneDoe
    Lv 6
    1 decade ago

    You do not have all the facts. The IRS does not have anything to do with sales taxes. If your family member has the ability to get current, by paying current taxes the IRS will work with them. If they do not get current and continue to owe additional taxes you family member will have a problem. I would assume the same type of rules apply for the State that you live in.

    You also have the right to appeal any action taken by the IRS.

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  • cataxdude2002
    1 decade ago

    What state are you in? This story does sound fishy because the state would be more interested in getting the sales tax returns filed and the taxes paid than merely shutting down the business

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