If you haven’t filed your 2010 personal income taxes yet, this is your 30 day letter (even though I am not the IRS). Assuming you or your tax preparer filed form 4868 (extension to file individal income taxes) you have until October 15 (actually October 17 because the 15th is a Saturday) to get everything filed. If you file after the extension date and you owe taxes, the penalty changes from half of a percent a month (late payment penalty) to 5% a month (late filing), so don’t do it. At least file the return even if you can’t pay the tax and ask for an installment agreement to make monthly payments on the tax due.
Brian’s Tax Musings
Well it sounds like the Amazon sales tax deal is a done deal. Amazon (along with other online retailers) won’t have to collect sales tax in California until September 15, 2012. After that they will. The bill is Ab155 and here is a link to an article and the text of the bill:http://www.forbes.com/sites/robertwood/2011/09/12/how-amazons-california-tax-romp-will-impact-us-all/So buy your DVDs and stuff before the September 15, 2012 deadline and you can pay the sales tax yourself to California on your 2012 Income Tax Return, or just wait and pay it to Amazon when you order.
Brian’s Tax Musings
Hey everyone in California! Chances are by September 2012 you will be paying sales tax on your Amazon purchases. Word is Amazon and the state of California have a tentative deal in place. California will give Amazon a moritorium on collecting sales tax for one year in exchange for Amazon agreeing to collect 7.25% tax thereafter. Don’t know too many details but it would seem that Amazon would then rehire their California affiliates and everyone makes money. We will see how it goes – when something definite comes up I will let you know.Here is a link to the compromise: http://www.bizjournals.com/sacramento/blog/morning-roundup/2011/09/amazon-makes-deal-with-california.htmlHere is an article that talks a little about the affiliates: http://watchdog.org/11275/amazon-tax-compromise-would-hit-california-small-biz/