I am giving a little more detail on the use tax issue I discussed yesterday (ok, State Board, I have done my duty). Individuals wanting to pay the use tax they owe (which by the way, California has no way of tracking) can do so on their individual tax return; form 540 has a line to pay use tax. Most businesses by now have been or will be forcibly registered by SBE to pay the use tax every April 15. If your California business hasn’t been registered yet, don’t worry, it will be soon. You file an online return and can pay the tax by debit or a check. If your business pays sales tax, you pay the use tax on the sales tax return.
Brian’s Tax Musings
Does everyone know that you owe the state use tax on any out of state purchases where sales tax hasn’t been collected (Overstock.com, Amazon for example)? You should, as the amount the California State Board of Equalization has been spending enough money on this campaign to guilt everyone into paying this tax they could probably make up the state budget deficit. They are trying to force Amazon and Overstock to charge sales tax, which has cost California income because these companies are firing affiliates that create a potential home base in California. They are sending countless notices to businesses and CPAs, trying to force professionals to help them collect the tax. Enough already. Tax Preparers may have an obligation to let their clients know about use tax and help their clients pay it if they want to, but that is as far as it goes.
Brian’s General Musings
Well, Friday was my birthday again (it seems to keep coming up every year). Hit the big double 5 and had a nice weekend with family. A friend took me out for lunch Friday and that night saw a movie made by a client of mine that finally made Video on Demand (A cute movie about the President’s Dog – 2 thumbs up1) and found he had mentioned me in the credits and special thanks area at end of the movie. All in all a great celebration!