At 11:10 PM 2007 0805, you wrote:
>What do I do next?
>Is sales tax liability bankruptable?
I'm having trouble understanding your circumstance, but it sounds to me as
if the state has decided that it wishes to make you pay a sales tax that
they think you should have collected, irrespective of whether you actually did.
The law reads something to the effect that a business is responsible for
the sales tax on a taxable item, and the state will invite you to infer
that you have a right to collect it from a customer, but that the
obligation to pay is really yours. That really isn't true, nor can be --
even the logic doesn't hold up.
I think you will find that the law only addresses sales tax you have
collected to the extent that you are prevented by law from failing to
convey it to the Tax and Finance People. In fact, the law may specifically
prevent you from collecting it in the first place unless you have a state
resale number. If you applied for and received a resale number, then you
have, indeed, agreed to act as the state's agent for the purpose of
collecting the tax. Still, you have to have collected it before you have
the responsibility for conveying it to the state.
If you did have a resale number, the first thing you should do, I would
say, is make certain you are familiar with and understand all the terms of
your agreement. Generally speaking, however, this just sounds like
extortion to me, and some of us are already aware that New York has an
affection for criminal tactics.
>I once owned my own biz as sole proprietor/DBA trade name. Recently I was
>assessed by NYS SalesTax, After audit found to exist held liable both
>individually and collectively under my personal family name, and again
>under the assumed DBA name. Each sales tax assessment demonstrating
>itself collectively and individually as me owing $500,000, is solely based